The South Korean government has raised its targets for clean vehicle adoption, aiming to have electric and hydrogen-powered models account for half of all new car sales by 2030.

The Ministry of Climate, Energy and Environment said on January 4th it will publish revised annual targets for low and zero-emission vehicles on January 5th, marking the first time the government has laid out a clear roadmap through 2030.

Under the plan, low-emission vehicles will be required to make up 28% of new car sales this year, rising gradually to 32% in 2027 and 50% in 2030. The targets apply to automakers and importers that sell more than a certain number of vehicles.

If manufacturers or importers fail to meet the targets, they will be required to pay a contribution fee, and purchase subsidies for their vehicles will be reduced.

The contribution fee will rise from KRW 1.5 million (US$ 1,050) per vehicle to KRW 3 million starting in 2028.

From 2029, the government will scrap differentiated targets for smaller sellers and eliminate the separate quotas that previously distinguished low-emission vehicles, such as hybrids, from zero-emission models such as electric and hydrogen cars.

By 2030, at least half of all new vehicles sold by each qualifying company must be electric or hydrogen-powered.

To provide flexibility, the ministry said it will allow hybrids to partially count toward the targets. Conventional hybrids will be credited as 0.3 of a vehicle, while plug-in hybrids with an all-electric range of at least 50 kilometres will count as 0.4.

Industry observers, in the meantime, argue that the targets are overly ambitious.

Last year, EVs accounted for only 13.5% of new car sales and annual EV adoption has consistently fallen short of government targets.