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Tesla's Model Y was the bestselling electric vehicle in South Korea as of August 2025, recording approximately thousand unit sales. Various models from South Korean brands followed. Regarding the domestic automotive industry, Hyundai Motor Company boasts a significant share of the car manufacturing market as the leading car manufacturer in South Korea.

Needing to respond to environmental issues

The transportation industry continues to significantly contribute to air pollution globally due to the high level of carbon dioxide (CO2) emissions. Countries with high economic growth rates seem to be especially concerned about this issue. On a global level, South Korea’s CO2 emissions increased by roughly *** percent within the last 30 years, making it the country with the third-largest growth rate. Although there has been greater awareness regarding environmentally-friendly cars among domestic consumers, the registered number of automobiles was dominated by vehicles with gas or diesel engines.

Attempting to overcome challenges

According to a prior survey about leading environmental issues, respondents were mostly concerned about high air pollution. Despite the awareness of the negative consequences caused by the automobile sector, a transition to more environmentally-friendly cars proved far more difficult due to the high costs of electric vehicles and the lack of charging stations. In response, the South Korean government announced the Green Car initiative and the Hydrogen Economy Roadmap to solve this problem. In addition to government subsidies for select models, the government planned to install more charging stations and focus the production of fuel cell electric vehicles (FCEVs) and full cells for power generation.