Table of Contents
- Overview of Busan Electric Vehicle Subsidy Policy
- Electric Vehicle Subsidy Eligibility in the First Half of 2026
- Core of Additional Support for Busan Youth EV Dream
- Local Discount System and Internal Combustion Vehicle Transition Benefits
- Application Method and Important Notes
- Conclusion, Busan Electric Vehicle Purchase Strategy
- Frequently Asked Questions (FAQ)
Overview of Busan Electric Vehicle Subsidy Policy
In the first half of 2026, Busan City is set to fully roll out the electric vehicle purchase subsidy program alongside an additional support policy for youth called 'Busan Youth EV Dream'.
This policy aims to alleviate the burden on young people purchasing their first vehicle, as well as those who are giving birth, getting employed, starting a business, or have disabilities. It targets to expand the distribution of electric vehicles and achieve carbon neutrality simultaneously.
Notably, the program allows for an additional support of up to 2 million won on top of the existing subsidies, enhancing its competitiveness compared to other local governments. This is expected to create an environment where many young people can choose electric vehicles.
Electric Vehicle Subsidy Eligibility in the First Half of 2026
The number of electric vehicles to be distributed in Busan in the first half of 2026 has been set at 5,023 units.
Specifically, this includes 4,126 passenger vehicles, 846 cargo vehicles, 38 buses, and 13 children's school buses.
The subsidies provided differ based on the type and price of the vehicle.
A maximum of 7.54 million won can be received for electric passenger vehicles, while electric cargo vehicles can receive up to 13.65 million won per unit. Additionally, electric buses can receive up to 91 million won, and children's school buses can receive a maximum of 150 million won.
These subsidies are funded by both the national and local government budgets, and the support amount gradually decreases as the price of the vehicle increases.
| Category | Electric Passenger Vehicle | Electric Cargo Vehicle | Electric Bus | Children's School Bus | ||||||
| Medium/Large | Small | Micro | Medium/Large | Small/Mid | Micro | Large | Medium | Large | Medium | |
| Total | Up to 754 | Up to 690 | Fixed 260 | Up to 7,800 | Up to 1,365 | Fixed 495 | Up to 9,100 | Up to 6,500 | Up to 15,000 | Up to 11,080 |
| National Budget | Up to 580 | Up to 530 | Fixed 200 | Up to 6,000 | Up to 1,050 | Fixed 380 | Up to 7,000 | Up to 5,000 | Up to 11,500 | Up to 8,500 |
| City Budget | Up to 174 | Up to 160 | Fixed 60 | Up to 1,800 | Up to 315 | Fixed 115 | Up to 2,100 | Up to 1,500 | Up to 3,500 | Up to 2,580 |
Core of Additional Support for Busan Youth EV Dream
Busan Youth EV Dream is an important policy to help youth residing in Busan settle in the region and engage in economic activities. This program offers up to 2 million won in additional support for young people purchasing electric vehicles.
Eligible candidates include young people purchasing their first vehicle, those expecting to give birth after December 2024, youth employed by companies in Busan, young entrepreneurs who have started a business, and individuals with disabilities. Additionally, manufacturing and importing companies, such as Hyundai·Kia Motors, KG Mobility, EVKMC that participate in the local discount system also provide an additional 500,000 won.
Particularly, young individuals from multi-child households who purchase passenger electric vehicles can receive benefits up to 12.64 million won by combining basic subsidies, multi-child support, Busan Youth EV Dream support, and local discounts. This support significantly contributes to helping young people create a better economic environment by facilitating their electric vehicle purchases.
Local Discount System and Internal Combustion Vehicle Transition Benefits
Busan City has decided to continue implementing the 'Local Discount System' introduced last year. This system allows Busan citizens to receive up to 600,000 won benefit when purchasing electric vehicles from participating companies, through a combination of discounts from manufacturers or importers and additional funds from the City of Busan.
Moreover, when an internal combustion vehicle is scrapped and converted to an electric vehicle, a conversion support fund of up to 1.3 million won is provided. There are also various support programs available.
For small business owners purchasing cargo vehicles, 30% of the national budget is provided, while the support for delivery vehicles and agricultural producers is set at 10% each. For lower-income households and first-time buyers of electric passenger vehicles, an additional 20% of the national budget is available. As practical benefits are strengthened, it is expected that many citizens will begin purchasing electric vehicles.
Application Method and Important Notes
Citizens aged 18 years or older and corporations or public institutions who have resided in Busan for more than 60 days are eligible to apply for subsidies.
Applications can be submitted through the integrated website for zero-emission vehicles of the Ministry of Environment (ev.or.kr), and after purchasing the vehicle, the application should be made through the manufacturer or importer.
For passenger and cargo vehicles, there is a restriction on repurchase for two years, and if the vehicle is transferred within two years of registration, approval from the City of Busan is required.
Conclusion, Busan Electric Vehicle Purchase Strategy
The electric vehicle purchase subsidy provided by Busan in the first half of 2026 boasts excellent levels in terms of distribution volume, support scale, and specialized policies for youth.
In particular, the 'Busan Youth EV Dream' program offers practical financial aid to youth who are purchasing their first vehicle, expecting a child, or about to start employment, making it a highly recommended option for young individuals considering electric vehicle purchases.
As the budget may be exhausted, it is essential to check the application period and eligibility criteria closely.
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Frequently Asked Questions (FAQ)
Q. What are the main details of Busan's electric vehicle purchase subsidy policy for the first half of 2026?
Busan City will implement the electric vehicle purchase subsidy program and additional support policies for youth in the first half of 2026.
In the first half of 2026, Busan City plans to fully implement the electric vehicle purchase subsidy along with an additional support policy for youth called 'Busan Youth EV Dream'. This policy aims to alleviate burdens for young people purchasing their first vehicle, as well as those giving birth, getting employed, or starting a business, while also expanding electric vehicle distribution and achieving carbon neutrality. Particularly, it offers up to 2 million won in additional support, enhancing competitiveness compared to other local governments, and is expected to encourage many young people to participate in purchasing electric vehicles.
Q. How many electric vehicles will be supported in Busan in the first half of 2026?
A total of 5,023 electric vehicles are planned to be distributed.
Busan City plans to distribute a total of 5,023 electric vehicles in the first half of 2026. Specifically, this includes 4,126 passenger vehicles, 846 cargo vehicles, 38 buses, and 13 children's school buses. Support will be provided across a variety of vehicle types to contribute to electric vehicle expansion.
Q. Who is eligible for the additional support under Busan Youth EV Dream and what benefits do they receive?
Young people purchasing their first vehicle and others are eligible for up to 2 million won in additional support.
Busan Youth EV Dream provides up to 2 million won in additional support to young residents of Busan purchasing their first vehicle, those expected to give birth after December 2024, employees in Busan area companies, young entrepreneurs, and individuals with disabilities. Additionally, an extra 500,000 won is available through partnerships with companies participating in the local discount system, such as Hyundai·Kia, KG Mobility, and EVKMC. Furthermore, when a young individual from a multi-child household purchases a passenger electric vehicle, they can receive up to 12.64 million won by combining different subsidies and discounts, significantly alleviating the economic burden for young people.
Q. What does the local discount system and internal combustion vehicle transition benefits in Busan entail?
The local discount system provides up to 600,000 won in discounts, while transitioning from an internal combustion vehicle can receive up to 1.3 million won in support.
Busan City plans to continue the local discount system established in 2025 in 2026, offering up to 600,000 won in benefits when purchasing electric vehicles by combining discounts from manufacturers or importers with additional city support. Additionally, citizens scrapping internal combustion vehicles and transitioning to electric vehicles will receive conversion support of up to 1.3 million won. Various national support programs are also available for groups such as small business owners purchasing cargo vehicles, delivery vehicles, and agricultural producers, with additional support for lower-income households and first-time buyers of electric passenger vehicles.
Q. What are the application method and important notes for Busan electric vehicle subsidies?
Applications should be made on the zero-emission vehicle integrated website, with a 2-year repurchase restriction and approval needed for transfers.
The eligible applicants for the Busan electric vehicle subsidy are citizens over the age of 18 who have resided in Busan for more than 60 days, as well as corporations and public institutions. Applications can be submitted via the integrated website for zero-emission vehicles (ev.or.kr) following the purchase contract, and through the manufacturer or importer. For passenger and cargo vehicles, repurchase restrictions apply for 2 years, and approval from Busan City is required for transfers within 2 years of registration. As budgets may be exhausted, it is crucial to diligently check eligibility and application periods.
