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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Economy & Trade

Jeju's EV Boom: Demand Triples, Subsidies Drained

From Hankyoreh · (4m ago) Korean Positive tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Jeju Island is experiencing a surge in electric vehicle (EV) demand, with applications tripling in the first four months of the year compared to last year.
  • The rapid uptake is attributed to rising gasoline prices and expanded government subsidies for EV purchases.
  • The island's budget for EV subsidies is rapidly depleting, prompting calls for additional funding to maintain the program.

Jeju, already a leader in electric vehicle adoption, is witnessing an unprecedented surge in demand, with applications for EV subsidies more than tripling in the first four months of 2026. This boom, driven by soaring global oil prices and the island's commitment to carbon neutrality, has outpaced initial government projections and is rapidly depleting the allocated budget.

The number of applications for the private EV supply project in the first four months of this year increased to 3,945, a 2.7-fold increase compared to the same period last year (1,441 units).

โ€” Jeju ProvinceHighlighting the dramatic rise in electric vehicle demand on the island.

The island's initiative to promote eco-friendly transportation, offering substantial subsidies that can reach up to 21.4 million won per vehicle, has proven highly successful. The inclusion of diverse vehicle types and additional incentives for specific demographics, such as large families and small business owners, has further fueled interest. However, the swift exhaustion of funds, with the upper-half-year target met in just four months, highlights the need for immediate financial adjustments.

The number of applications began to increase in the second half of last year as the range of eligible vehicle types expanded and EVs were excluded from the 'parking lot certificate' requirement, and high oil prices this year also appear to have had an impact.

โ€” Ko Young-jin, Head of Jeju Province's Electric Vehicle Support TeamExplaining the factors contributing to the increased demand for EVs.

While Jeju's government is actively seeking supplementary budgets and coordinating with national authorities to ensure the continuity of its EV program, the current situation underscores a broader challenge: balancing ambitious environmental goals with the financial realities of incentivizing widespread adoption. The island's commitment, even echoed by President Lee Jae-myung's directive to accelerate the transition to 100% electric new car sales by 2035, faces the immediate hurdle of maintaining funding to meet this escalating demand.

We will establish support measures tailored to Jeju's conditions through consultations with the government and ensure that the EV supply project continues without disruption.

โ€” Kim Nam-jin, Head of Jeju Province's Innovation Industry BureauAddressing concerns about the depletion of subsidies and promising continued support.
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Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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