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Expansion of Electric Vehicle Supply in Busan
Busan City plans to begin additional supply projects in the first half of 2026 to meet the rapidly increasing demand for electric vehicles. Recent changes in international oil prices and the reduction in electric vehicle prices, along with the launch of new models, have resulted in a significant increase in electric vehicle purchasing demand, leading to the rapid depletion of subsidies in the first half of the year.
Accordingly, Busan City announced the launch of the "2026 Electric Vehicle Private Supply Project" additional announcement starting May 13. A total of 1,000 electric vehicles will be additionally supplied through a budget of 1.2 billion won from the city and 4 billion won from the national government.
This project not only supports electric passenger cars but also includes support for electric cargo vehicles tailored to livelihood demand, gaining significant interest from small business owners and self-employed individuals. Through this, Busan City plans to promote the supply of electric vehicles and accelerate the transition to environmentally friendly means of transportation.
How to Apply for Electric Vehicles and Schedule
This supply project has different application schedules depending on the type of vehicle. Applications for electric cargo vehicles will begin at 11:00 AM on May 20, 2026, while applications for electric passenger cars will be available starting at 11:00 AM on May 27, 2026. Applications may close early once the budget is exhausted, so citizens considering application must register promptly.
The supply quantity is set at 600 electric passenger cars and 400 electric cargo vehicles. Eligible applicants include citizens who have resided in Busan for more than 60 days continuously, as well as corporations, public institutions, and local public enterprises.
The application process proceeds as follows.
First, a vehicle purchase contract is signed, followed by the application for purchase support. After receiving notification of selection, the vehicle will be released and registered. Finally, the subsidy payment application is made, and the subsidy is received.
Applications for subsidies are made on the Ministry of Environment's Zero Emission Vehicle Integrated Website, where vehicle purchasers only need to pay the remaining amount, excluding the subsidy, to the manufacturer.
Subsidy Amount for Electric Cargo Vehicles
Busan City provides subsidies in varying amounts depending on the type of vehicle.
Electric passenger cars can receive a maximum support of 7.54 million won, while the amount of support for electric cargo vehicles varies by category.
| Category | Electric Passenger Cars | Electric Cargo Vehicles | Electric Buses | Children’s School Buses | ||||||
| Medium/Large | Small | Micro | Medium/Large | Small/Light | Micro | Large | Medium | Large | Medium | |
| Total | Max 7.54 | Max 6.90 | Flat 2.60 | Max 78.00 | Max 13.65 | Flat 4.95 | Max 91.00 | Max 65.00 | Max 150.00 | Max 110.80 |
| National | Max 5.80 | Max 5.30 | Flat 2.00 | Max 60.00 | Max 10.50 | Flat 3.80 | Max 70.00 | Max 50.00 | Max 115.00 | Max 85.00 |
| City | Max 1.74 | Max 1.60 | Flat 0.60 | Max 18.00 | Max 3.15 | Flat 1.15 | Max 21.00 | Max 15.00 | Max 35.00 | Max 25.80 |
The scale of support varies as mentioned. For electric passenger cars, up to 7.54 million won is supported, while small electric cargo vehicles can receive up to 1.365 million won.
For medium and large electric cargo vehicles, support can go up to 78 million won. Micro electric cargo vehicles receive a flat amount of 4.95 million won.
Additionally, electric buses and children's school vehicles receive support of over 100 million won.
Busan City has supplied 4,126 electric passenger cars and 846 electric cargo vehicles with its existing stock in the first half of this year. However, the electric cargo vehicles were already sold out by the end of March, and the electric passenger cars were sold out by mid-April.
The significant increase in applications, approximately 2.7 times compared to the same period last year, is identified as the main reason. In particular, the rising fuel prices and the effect of reduced maintenance costs have rapidly increased demand for electric cargo vehicles.
Support for Busan Youth EV Dream
Busan City implements the 'Busan Youth EV Dream' support policy alongside new projects.
According to this policy, young residents of Busan who purchase electric vehicles can receive up to 2 million won in additional support. This amount includes 500,000 won from the manufacturer.
The eligible candidates vary as follows. Young people purchasing their first car, young people who gave birth after December 2024, young people employed by companies in Busan, young entrepreneurs in Busan, and young individuals with disabilities are included.
Support amounts vary by type. Young people purchasing their first car will receive 1 million won, while those who gave birth or are employed by Busan companies will receive 1.5 million won each. Also, young entrepreneurs in Busan will receive 1.5 million won, and disabled youth will receive up to 2 million won in support.
| Eligible Candidates | Vehicle Type | Number of People | Support Amount | Funding Source | Remarks | |
| Total | 1,000 people | - | City | Manufacturer | ||
| ❶ Youth buying their first car in ’26 | Passenger | 650 people | 1 million won | 500,000 won | 500,000 won | Individual |
| ❷ Youth who gave birth after December ’24 | Passenger | 150 people | 1.5 million won | 1 million won | 500,000 won | Individual |
| ❸ Youth employed by Busan companies | Passenger | 90 people | 1.5 million won | 1 million won | 500,000 won | Individual |
| ❹ Youth who started a business in Busan | Cargo | 90 people | 1.5 million won | 1 million won | 500,000 won | Individual Entrepreneur |
| ❺ Disabled youth | Passenger | 20 people | 2 million won | 1.5 million won | 500,000 won | Individual |
Support for youth who have given birth is operated on a first-come, first-served basis, with 30 households per month based on the parents. Young applicants must have resided in Busan for at least 60 days and must be between the ages of 19 and 34. However, there are no age limits for youth who have given birth.
Prospects and Expected Effects of the Electric Vehicle Market
Busan City will continue to monitor demand for electric vehicles in the second half of the year, securing additional supply and operating a flexible support system. As competition for electric vehicle prices intensifies, charging infrastructure expands, and maintenance cost reduction effects are added, the pace of electric vehicle popularization is expected to accelerate further.
In particular, localized policies such as 'Busan Youth EV Dream' are significant as they support the settlement of young people while promoting the distribution of eco-friendly vehicles. Such policies can be seen as important steps toward a sustainable future.
If you are considering purchasing an electric vehicle, make sure not to miss out on opportunities to receive subsidies. Since subsidy quantities are rapidly depleting, it is necessary to promptly grasp the scale of support by vehicle type and the application schedule and register quickly.
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Frequently Asked Questions (FAQ)
Q. When will Busan City’s additional electric vehicle support project for 2026 be implemented?
From the first half of 2026, Busan City will officially implement the additional electric vehicle supply project.
Busan City plans to effectively carry out the private supply project for electric vehicles from the first half of 2026 in response to the rapidly increasing demand for electric vehicles. The additional announcement will start on May 13, with a total of 1,000 electric vehicles to be added with 1.2 billion won from the city and 4 billion won from the national government. This includes support for not only electric passenger cars but also electric cargo vehicles, attracting attention from small business owners and the self-employed.
Q. What is the schedule for applying for electric vehicle subsidies in Busan City for 2026?
Applications for electric cargo vehicles start on May 20, and for electric passenger cars on May 27 at 11:00 AM.
Applications for electric cargo vehicle subsidies will start at 11:00 AM on May 20, 2026, and applications for electric passenger car subsidies will be available starting at 11:00 AM on May 27, 2026. Applications may close early once the budget is exhausted, so interested applicants should hurry to register. The allocated supply quantity is 600 electric passenger cars and 400 electric cargo vehicles, and eligible applicants include citizens who have resided in Busan for more than 60 days continuously, as well as corporations, public institutions, and local public enterprises.
Q. What is the procedure for applying for electric vehicle subsidies?
After signing the vehicle purchase contract, the subsidy application is made on the Ministry of Environment's Zero Emission Vehicle website.
The subsidy application process begins with signing the vehicle purchase contract, followed by applying for purchase support. After receiving notification of selection, the vehicle will be released and registered. Finally, the subsidy payment application is completed on the Ministry of Environment's Zero Emission Vehicle Integrated Website, and the subsidy will be received. Vehicle purchasers only need to pay the amount remaining after the subsidy to the manufacturer.
Q. What is the amount of electric vehicle subsidies in Busan City?
Electric passenger cars can receive up to 7.54 million won, and electric cargo vehicles have a maximum of 78 million won based on their category.
The support amount for electric passenger cars is up to 7.54 million won, while for electric cargo vehicles, the amount varies by size. Small electric cargo vehicles can receive up to 1.365 million won, and medium/large electric cargo vehicles can receive up to 78 million won. Micro electric cargo vehicles receive a flat amount of 495,000 won, and electric buses and children's school vehicles can receive support of over 100 million won.
Q. What is the Busan Youth EV Dream support?
It is a policy providing up to 2 million won in additional support for electric vehicles to young residents of Busan.
The Busan Youth EV Dream program provides additional support for young residents of Busan purchasing electric vehicles. The maximum support is 2 million won, which includes 500,000 won from the manufacturer. Eligible candidates include young people purchasing their first cars, those who have had children since December 2024, young employees of Busan companies, entrepreneurial youth in Busan, and young individuals with disabilities; support varies from 1 million to 2 million won based on type. Support for mothers is administered on a first-come, first-served basis, with 30 people each month.
Q. What are the expected effects of the additional electric vehicle supply in Busan City for 2026?
Expansion of electric vehicle supply, acceleration of the transition to eco-friendly transportation, and support for youth settlement are expected.
Busan City plans to monitor electric vehicle demand continuously and secure supply through additional projects and policies like the Busan Youth EV Dream program. With intensified price competition and expanded charging infrastructure, the popularization of electric vehicles is expected to progress rapidly. The youth support policy plays a vital role in simultaneously promoting the distribution of eco-friendly vehicles and settling young residents, marking significant steps toward a sustainable future.