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Korea EV subsidy and tax relief in 2027: what the proposed changes mean for a Tesla
Event date The day the Cabinet approved the 2027 budget proposal, as reported by Asia Economy. It still needs the National Assembly. KR
What happened
On September 1, 2026, Korea's Cabinet approved a 2027 budget proposal that raises the EV supply budget to 2.1403 trillion won, up 32.8% from 1.6114 trillion won, for 430,000 EVs. The government has also proposed cutting the cap on the EV individual consumption-tax reduction from 3 million to 2 million won, which Asia Economy says mainly affects EVs priced above about 55 million won. Nothing here is law yet.
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What the government has proposed
Asia Economy reported the Climate Ministry's 2027 budget on September 1, 2026. Two lines matter to a Tesla buyer, and they pull in opposite directions.
| Measure | 2026 | 2027 (proposed) |
|---|---|---|
| EV supply budget | 1.6114 trillion won | 2.1403 trillion won (+32.8%) |
| EVs targeted | 300,000 | 430,000 |
| Cap on the EV individual consumption-tax reduction | 3 million won | 2 million won |
A bigger budget spread over more cars says nothing yet about the subsidy per car. Asia Economy reports that the ministry plans to revise and announce its subsidy policy by the end of the year. Until that is published, nobody can tell you what a Model 3 or Model Y will receive in 2027.
Who the tax-cap cut touches
Korea reduces the individual consumption tax on EVs up to a cap. Cutting the cap by 1 million won only bites on cars whose tax reduction would otherwise exceed 2 million won. Asia Economy puts that line at about 55 million won and notes the average EV sells for about 50 million won. So the cut mainly reaches higher-priced EVs. Whether your Tesla is one of them depends on the configured price, so check it on Tesla's Korean site rather than on any list we could print here.
Timing: why the date on the registration matters
The proposal targets 2027. Which year's rules apply to your car depends on when the tax falls due, and Tesla Korea can tell you how it handles a car that slips into January. If your configuration sits above the line, ask Tesla Korea for a delivery date before you sign, and ask what happens to your price if it moves into 2027.
What has not changed
- 2026 rules run to year-end. The cap cut is a proposal for 2027.
- The National Assembly decides. Budget figures can change before they are passed. We will update this item if they do.
- The referral page. South Korea showed Listed, no buyer benefit shown on Model 3 and Listed, no buyer benefit shown on Model Y, on our capture of Tesla's South Korea referral page dated October 4, 2026. A link does not add a subsidy or a tax cut.
- No promo code. Subsidies and tax relief are applied by the government, not by a code.
What to do
- Above about 55 million won: compare a December 2026 purchase with a January 2027 one once your delivery date is firm.
- Wait for the ministry's 2027 subsidy rules, due by the end of the year, before counting on any per-car figure.
- Ask Tesla Korea in writing what happens to your price if delivery moves into 2027.
- Treat every 2027 figure as a proposal until the National Assembly passes the budget.
Sources
- [2027 Budget] Climate Ministry sets record 25.7 trillion won... EV supply expanded to 430,000 units Asia Economy, September 1, 2026