According to reports from the South Korean news agency on December 19, 2024, the South Korean government has announced plans to impose anti-subsidy taxes on imported electric vehicles from China, drawing from the European Union’s experience of investigating Chinese electric car subsidies.
Officials from the South Korean Ministry of Industry, Trade and Resources stated on Wednesday (December 18) that if South Korean companies and other stakeholders file for an anti-subsidy investigation, the government will initiate an investigation into Chinese imported electric vehicles based on subsidy agreements and the Customs Law.
The officials added that the South Korean government has established guidelines for the investigation process, and if relevant companies apply for an anti-subsidy investigation, the Ministry’s Trade Commission can conduct the investigation according to the guidelines.
It has been reported that Chinese electric vehicle manufacturer BYD will officially launch its operations in South Korea in January next year. The government officials stated that, similar to the European Union’s imposition of final anti-subsidy taxes on Chinese electric cars, South Korea’s Customs Law also includes provisions for imposing anti-subsidy taxes.
After more than a year of initiating the anti-subsidy investigation, the European Union decided to significantly increase tariffs on imported electric vehicles from China starting from October 31. This measure is expected to be in effect for five years, with the newly imposed anti-subsidy tariffs ranging from 7.8% to 35.3% in addition to the original 10% automobile import tariff.