The South Korean government finalized its 2026 electric vehicle subsidy plan. The maximum incentive increased to 6.8 million won, up from 5.8 million won.
This policy aims to bolster domestic EV sales. The change anticipates a wave of Chinese brands expected to enter the Korean market in 2026.
The policy directly affects Tesla, whose Model Y was Korea's best-selling EV in 2025. The increased subsidies may help the company maintain sales momentum against heightened competition. The price cap for vehicles to receive the full subsidy remains fixed at 53 million won.