This year, the newly established subsidy for mid-sized electric trucks has yet to disburse any funds. While manufacturers exist and there is clear demand for purchases, mid-sized electric trucks are rarely seen on the roads. With half the year gone, widespread adoption remains elusive.
The government introduced a subsidy for mid-sized and larger electric trucks in January 2026, as part of its "2026 Electric Vehicle Supply Project Subsidy Management Guidelines." It allocated up to 40 million won for electric cargo trucks weighing between 1.5 and 5 tons, and up to 60 million won for trucks over 5 tons. This expansion of support, previously focused on 1-ton electric trucks, has garnered significant interest from the freight industry.
However, the program has struggled to gain traction in the market. Tata Daewoo, which has entered the mid-sized electric truck market, reports difficulties in selling its 'Gisen' model. Even with government subsidies, the trucks are about 100 million won more expensive than internal combustion engine vehicles. The price of a Gisen truck ranges from 180 million to 200 million won. Despite using lithium iron phosphate (LFP) batteries to reduce costs, industry insiders have noted that selling these trucks often results in losses.
The Ministry of Climate, Energy, and Environment, which established the mid-sized electric truck subsidy, is also in a difficult position. No vehicles have yet passed the certification process required for subsidy eligibility. The ministry explained that the evaluation process for manufacturers is taking longer than expected.
As a result, there is a disconnect between policy and market realities. The government has created subsidies, but the vehicles are not ready, and while manufacturers have introduced trucks, consumers are hesitant to purchase.
Although mid-sized trucks attract less attention than passenger cars, they are widely used in daily life. Most cleaning vehicles, moving trucks, and convenience store delivery vehicles in urban areas are mid-sized trucks. A significant number of vehicles also operate between logistics centers, factories, and ports. Given their repetitive routes, electrifying these vehicles could have a substantial impact.
Mid-sized cargo trucks typically have longer operating distances and higher fuel consumption compared to passenger cars, making them effective for reducing emissions. Industry experts estimate that one mid-sized electric truck can have the carbon reduction effect equivalent to dozens of internal combustion engine passenger cars. Additionally, operating these trucks incurs lower fuel costs and minimal expenses for replacing consumables like engine oil. The longer they are in operation, the more economically viable they become.
The widespread adoption of mid-sized electric trucks is no longer a matter of choice. The government aims to reduce greenhouse gas emissions by 40% from 2018 levels by 2030, as part of its Nationally Determined Contributions (NDC). The introduction of the mid-sized electric truck subsidy reflects the understanding that achieving carbon neutrality cannot rely solely on the electrification of passenger vehicles. Reducing emissions in the transportation sector is essential to meet these goals.
However, transportation operators purchasing vehicles must prioritize economic viability over carbon considerations. While there is acknowledgment of the need to transition to electric vehicles, voices in the field express difficulty in making purchasing decisions due to vehicle prices, charging infrastructure, and maintenance costs. It is crucial to remember that trucks are ultimately a means of livelihood.
The government also needs to reflect on its approach. What is needed now is to ensure that the system can operate at the same pace as the market. Lowering price accessibility is vital for expanding mid-sized commercial vehicles, but current government policies focused on protecting domestic industries have resulted in dissatisfaction for both consumers and manufacturers.
In this context, the "zero subsidies for mid-sized electric trucks" is not just a number. It serves as a symbolic report card illustrating the significant gap between carbon neutrality policies and industrial realities. Achieving carbon neutrality cannot be accomplished through declarations alone.
* This article has been translated by AI.
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