South Korea Electric Vehicle Market Research Report, 2030

The South Korean electric vehicle (EV) market is rapidly growing, driven by government initiatives, technological advancements, and increasing consumer demand for sustainable transportation. As one of the leaders in the global automobile market, South Korea aims to increase the domestic market share of EVs and supply 4.5 million units by 2030. The market is supported by aggressive government policies, including subsidies and incentives to promote EV adoption and the development of eco-friendly vehicles. Major domestic automakers like Hyundai Motor Company are at the forefront, exporting EV models globally and continuously expanding their electric fleet. The South Korean government is also focusing on technological innovations, such as solid-state batteries and digital twin technology for battery management, to enhance EV performance and efficiency. With a projected market size of USD 32.26 billion by 2033 and a CAGR of 16.21%, the South Korean EV market is poised for significant growth, contributing to the country's climate goals and reducing reliance on fossil fuels. The South Korean electric vehicle (EV) market has evolved significantly since the early 2000s, driven by government policies and technological advancements. Initially, the government focused on promoting hybrid and hydrogen vehicles but shifted towards pure EVs due to their potential for reducing greenhouse gas emissions. Key regulatory policies include substantial subsidies for EV purchases, investments in charging infrastructure, and stringent emissions standards. In 2021, South Korea unveiled the "2050 Carbon Neutrality Scenario," aiming for over 85% of vehicles to be BEVs or FCEVs by 20502. The government also introduced safety regulations following incidents like the 2025 Mercedes-Benz fire, mandating third-party battery inspections and detailed disclosure of battery specifications. These policies have positioned South Korea as a leader in the global EV market, with major automakers like Hyundai and Kia expanding their electric fleets. According to the research report, "South Korea electric vehicle Market Research Report, 2030," published by Actual Market Research, the South Korea vehicle Market is expected to reach a market size of more than USD 115.36 Billion by 2030. South Korea's electric vehicle (EV) market has experienced significant growth, fuelled by a mix of government incentives, technological advancements, and robust backing from local automakers. As a prominent nation in the global automotive sector, South Korea is establishing itself as a crucial participant in the electric mobility transformation. South Korea's engagement with electric vehicles began in the 1990s, but notable advancement in EV adoption started in the 2010s. The government initiated various programs to promote cleaner transportation, which included tax incentives and infrastructure development. The domestic EV market genuinely picked up pace with the launch of models like the Hyundai Kona Electric and the Kia Soul EV. Hyundai Motor Group, encompassing Hyundai and Kia, has made substantial investments in electric mobility, and the corporation stands as a global frontrunner in EV production. The achievements of these models laid the foundation for other entrants in the market, comprising local start-ups and international firms. The South Korean government has rolled out an array of incentives to promote EV adoption, including subsidies for EV purchases, tax rebates, and exemptions from vehicle registration fees. Furthermore, policies that support the development of charging infrastructure have made owning EVs more convenient. Increasing environmental issues, particularly air pollution in urban locations like Seoul, have intensified the demand for cleaner vehicles. South Korea is dedicated to minimizing its carbon footprint, and EVs are integral to this initiative. South Korea hosts key battery manufacturers, such as LG Chem and Samsung SDI, which provide essential components for electric vehicles. This technical proficiency, coupled with progress in battery efficiency and charging durations, has reduced the cost of EVs, allowing greater access for consumers.

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The propulsion segment of the South Korean electric vehicle (EV) market is characterized by a diverse range of technologies aimed at enhancing vehicle performance, efficiency, and sustainability. The market is dominated by battery electric vehicles (BEVs), which rely solely on electric power stored in batteries for propulsion. BEVs are favoured for their zero emission capabilities and are supported by extensive government incentives and tax credits. Plug-in hybrid electric vehicles (PHEVs) combine an internal combustion engine with an electric motor, offering the flexibility of both electric driving and traditional fuel use. PHEVs are popular among consumers who seek the benefits of electric driving without range anxiety. Hybrid electric vehicles (HEVs), which also combine an internal combustion engine with an electric motor but cannot be plugged in for charging, provide improved fuel efficiency compared to conventional vehicles. The market is also witnessing the emergence of fuel cell electric vehicles (FCEVs), which generate electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapor as a byproduct. FCEVs are gaining traction due to their potential for long-range travel and quick refuelling times. Key players in the propulsion segment include Hyundai Motor Company, Kia Motors, and LG Chem, each investing heavily in research and development to advance their respective technologies. The expansion of charging infrastructure, including high-speed DC fast chargers and home charging solutions, is further driving the adoption of EVs across the country. As consumer awareness of environmental impact grows, the propulsion segment is expected to continue evolving, with a focus on improving energy density, reducing charging times, and enhancing overall vehicle performance. The vehicle type segment of the South Korean electric vehicle (EV) market is diverse, encompassing a wide range of vehicle categories designed to cater to different consumer needs and preferences. The market includes passenger cars, which are the most popular segment, offering various models such as sedans, hatchbacks, and SUVs. Passenger cars are favoured for their versatility and suitability for daily commuting and family use. Light commercial vehicles (LCVs), including vans and small trucks, are also a significant part of the market, driven by the growing demand for sustainable transportation solutions in urban areas and logistics. Medium-duty commercial vehicles (MDCVs), such as larger delivery trucks and utility vehicles, cater to businesses requiring higher load capacities and longer ranges. Heavy-duty commercial vehicles (HDCVs), including large trucks and buses, are gaining traction as the infrastructure for EVs improves and consumer awareness increases. Within the passenger car segment, luxury EVs are becoming increasingly popular, with high-end brands offering premium features, advanced technology, and superior performance. These luxury EVs cater to affluent consumers who seek both sustainability and luxury. Additionally, the market includes special-purpose EVs, such as electric taxis and ride-sharing vehicles, which are becoming increasingly common in major cities. Key players in the vehicle type segment include Hyundai Motor Company, Kia Motors, and LG Chem, each offering a wide range of models across different vehicle types. The expansion of charging infrastructure, including high-speed DC fast chargers and home charging solutions, is further driving the adoption of EVs across the country. As consumer awareness of environmental impact grows, the vehicle type segment is expected to continue evolving, with a focus on improving energy density, reducing charging times, and enhancing overall vehicle performance. South Korea's electric vehicle (EV) market is witnessing notable growth, with the enhancement of charging infrastructure playing a vital role in facilitating this transition. The EV charging market in South Korea is categorized into two primary types: fast charging and normal (or standard) charging, each addressing distinct consumer requirements and driving habits. Fast charging, or DC fast charging, is crucial for minimizing the duration required to recharge EV batteries, especially for long-distance journeys or for drivers in urban areas where EV adoption is high. Fast chargers can replenish an EV battery to roughly 80% in 30 to 40 minutes, making them suitable for busy locations such as highways, shopping malls, and transit hubs. South Korea has been proactively enhancing its fast-charging infrastructure to meet the increasing demand for electric vehicles. The government, in partnership with private companies like SK Innovation, has invested in a nationwide framework of fast chargers, ensuring that EV owners can charge swiftly and conveniently. Fast-charging stations are becoming more prevalent along highways and in major cities like Seoul, alleviating range anxiety and rendering EVs a more feasible option for consumers. Normal or Level 2 charging utilizes 220V outlets and generally requires several hours to completely charge an EV. This form of charging is better suited for home or workplace use, as EV owners can leave their vehicles plugged in overnight or during working hours. In South Korea, normal charging stations are extensively available in residential complexes, office buildings, and public spaces. Additionally, they are more economical to install compared to fast chargers. Numerous apartment complexes in cities like Seoul have started to install Level 2 chargers to meet the rising demand for EVs among urban dwellers.

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Nikita Jabrela

Business Development Manager

Considered in this report • Geography: South Korea • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Electric vehicle Market with its value and forecast along with its segments • Region & country wise electric vehicle Market analysis • Application wise electric vehicle marker distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Propulsion • Battery Electric Vehicle (BEV) • Fuel Cell Electric Vehicle (FCEV) • Plug-In Hybrid Electric Vehicle (PHEV) • Hybrid Electric Vehicle (HEV)

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By Vehicle Type • Passenger • Commercial • Two Wheelers By charging type • Fast • Normals The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.