South Korea plans higher EV subsidies for 2026 to ease tariff pain

South Korea is set to boost financial assistance for its carmakers and increase subsidies for electric-vehicle (EV) buyers in 2026. The measures are intended to offset the impact of US tariffs. The government has set aside over Won15tn ($10.2bn) for the auto sector next year, comprising low-interest loans and state guarantees for vehicle and parts manufacturers. EV purchase subsidies will rise by over 30% to Won936bn. Consumption and acquisition taxes will be eliminated for all‑electric, hybrid petrol‑e ...