South Korea will lower rates for slow electric vehicle (EV) chargers while raising those for fast and ultra-fast chargers, as the government subdivides its two-tier pricing structure into five tiers. The move aims to reduce the burden on consumers who mainly use slow chargers while bringing rates for newly deployed fast chargers in line with market realities, improving business conditions for operators.
The Ministry of Climate, Energy and Environment announced Tuesday that it will conduct a public notice of the EV public charging rate adjustment plan from Wednesday through Dec. 19. For the past four years, the government has set rates at 324.4 won per kilowatt-hour (kWh) for public slow chargers under 100 kilowatts (kW) and 347.2 won per kWh for fast chargers of 100 kW or more. This pricing structure was established when most chargers had output below 20 kW.
The issue is that fast chargers are increasing in response to consumer demand for quick charging when batteries run low. The market for sub-100 kW chargers has also split into slow chargers under 30 kW used for overnight charging in parking lots and mid-speed chargers of 50 kW used for several-hour charging during business hours.
On top of this, rates for some apartment slow chargers, which had been maintained in the high 200 won per kWh range, surged to the mid-to-high 300 won range from late last year, prompting calls for reform of public EV charging rates.
In response, the ministry restructured the rates into five tiers based on charger conditions — slow, mid-speed, fast, and ultra-fast. The tiered rates are: Tier 1 under 30 kW at 294.3 won, Tier 2 at 30-50 kW at 306 won, Tier 3 at 50-100 kW at 324.4 won, Tier 4 at 100-200 kW at 347.2 won, and Tier 5 at 200 kW or higher at 391.9 won. Compared with the existing rates, slow charger rates used by most consumers are 18.4 to 30.1 won per kWh cheaper than before. In contrast, rates for ultra-fast chargers of 200 kW or higher, which involve the latest technology with high installation costs and expensive equipment, rose 44.7 won per kWh from the current rate structure.
The government expects the rate overhaul to ease the charging burden for most consumers. The number of ultra-fast chargers of 200 kW or higher, which saw a sharp rate increase, totals just 11,654, or 2.3 percent of all 516,996 chargers. By contrast, the number of chargers under 50 kW, which saw rate cuts, reaches 451,757, or 87.4 percent of the total. "Most consumers primarily use slow chargers installed in apartments and often do brief top-up charges at fast chargers when needed while driving," a ministry official said. "Overall, drivers' charging cost burden will not increase."
The government's five-tier rates apply only to public EV chargers operated by the ministry and private EV chargers registered as members of the ministry's Ieum Card program. If private operators set their own charging rates higher than the ministry's five-tier rates, consumers can choose the ministry's rates, meaning the ministry's rates will effectively serve as a ceiling for domestic EV charging prices. According to the ministry, the total number of chargers subject to the five-tier rates is 271,941, or 52.6 percent of all chargers.
The government also plans to review a system that varies charging rates paid by drivers by season and time of day, reflecting how electricity rates paid by charging operators vary by season and time. Charging rates could be set lower during daytime hours with high renewable energy generation or in spring and autumn when power demand is low.
Information disclosure for eco-friendly vehicle charging stations will also be strengthened. First, the government plans to require electric and hydrogen vehicle chargers at highway rest stops to display charging rate signboards outside, similar to gas stations. The aim is to improve the current situation in which drivers plug in chargers without knowing exactly how rates are applied each time they charge.
The government has also introduced a legislative notice for an amendment to subordinate laws under the Clean Air Conservation Act requiring charging rates, detailed charger locations, and current availability to be disclosed on the Zero-Emission Vehicle integrated website. The government plans to impose fines of up to 1 million won on businesses that fail to register or provide information.
The ministry will also amend guidelines so that subsidies for removing and installing new chargers that have not yet reached their eight-year service life will be granted only with justifiable reasons. Instead, subsidies will be provided when managers of apartments and other multi-family housing directly install and operate chargers without outsourcing to charging operators.
