South Korea has significantly revised its evaluation criteria for electric vehicle subsidy eligibility, which had sparked controversy over alleged discrimination against foreign EVs such as Tesla and BYD. Items favoring only domestic firms, including corporate credit ratings and domestic patents, were removed, and the passing score was lowered to 60 points from 80. As a result, the subsidy threshold for overseas manufacturers including Tesla is expected to be further lowered.
The Ministry of Climate, Energy and Environment said Thursday it had finalized the "Evaluation Criteria for Selecting EV Distribution Project Operators." This marks the first time the government will determine subsidy eligibility by assessing automaker capabilities rather than vehicle performance.
The evaluation comprises five categories: technology development capability (10 points), supply chain contribution (40 points), environmental policy response (15 points), after-sales management and sustainability (20 points), and safety management (15 points). The government plans to conduct manufacturer evaluations next month and implement the system starting July 1. The existing system, under which the maximum subsidy amount varies by model based on driving range and other performance metrics, will remain in place even for manufacturers that qualify under the new evaluation.
The supply chain contribution category, which carries the highest weight, is designed so that points can be earned only by operating manufacturing facilities in Korea or using domestic parts. In the environmental policy response and after-sales management and sustainability categories, scores increase with the establishment of a domestic spent-battery recycling system or expanded maintenance infrastructure. Domestic EV manufacturers, which source vehicle bodies and key components locally, are expected to comfortably meet the passing criteria.
Tesla, the biggest competitor to Korean-made EVs, is also more likely to qualify for subsidies. Tesla uses Korean-made battery packs, boasts strong safety performance, and has a relatively advanced spent-battery recycling system, allowing it to score higher than Chinese manufacturers. "If Tesla improves just a few items such as maintenance infrastructure, it looks entirely possible for the company to exceed 60 points," an industry official said.
Tesla has come within range of subsidies because the government's evaluation criteria were eased compared with the initial draft. The ministry had originally proposed a passing score of 80 points. Critics argued that the framework was excessively disadvantageous to import brands and limited consumer choice, as 60% of the total score came from qualitative assessments and the criteria included items such as corporate credit ratings, domestic patent filings, and the establishment of directly operated service centers. In response, the ministry lowered the passing score to 60 points and eased the system by specifying evaluation standards for each item.
