The nation’s ambitious goal to become one of the world’s top four electric-vehicle production powerhouses faces a bumpy road due to slower-than-expected market penetration.
Under the 2020 vision for green cars, unveiled in 2010, the government plans to replace 20 percent of cars on the road with EVs for Korea to take 10 percent of the global EV market. For this goal, the Ministry of Environment and the Ministry of Knowledge Economy have invested in infrastructure for EVs to boost demand for the vehicles.
Despite these efforts for the past two years, the Ministry of Strategy and Finance, which controls the nation’s budget, recently cut the Ministry of Environment’s 2013 budget for EVs by more than 50 percent to 27.9 billion won ($26 million). “It was necessary to cut the EV-related budget next year due to slower-than-expected demand for EVs this year,” a ministry official said.
Even public organizations, which…
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