South Korea’s Ministry of Environment is continuing the “Electric Motorcycle Subsidy Program and Battery Swap Charging Facility Support Program,” which was launched in spring 2025. Its effects appear to be gradually emerging in the market.
The program’s key points include:
• A national initiative aiming to popularize 20,000 electric motorcycles in 2025
• The national subsidy is US$ 10.86 million (16 billion won), which significantly reduces the purchase price when combined with local government subsidies
• Particularly favors battery swap systems (BSS), subsidizing up to 70% of the vehicle price (previously 60%)
• Plans to establish 500 new battery swap stations to develop swap infrastructure
• A separate US$ 3.4 million (5 billion won) will be invested in swap station development
• Subsidies are limited to batteries and stations that comply with national standards (KS specifications)
• A policy mechanism will promote standardization to prevent fragmented specifications among manufacturers
• Additional subsidies will be provided for high-performance models with fast-charging capability (3 kW or higher) and battery condition monitoring
The primary target for adoption is commercial two-wheelers for delivery riders to solve charging wait times through the swap system
The objectives are to reduce noise and exhaust emissions, improve the urban environment, and accelerate the integration of electric motorcycle (EV) infrastructure
Battery-swap electric motorcycles: 1,654 units in 2023, doubling to 3,429 units in 2024. As of 2024, there are 1,872 swap stations nationwide. The plan is to add another 500 stations.
Source: Seoul Shinmum
PSR Analysis: This initiative is more than just a policy to distribute 20,000 electric motorcycles. Rather, it is a comprehensive package that encompasses infrastructure, standards, and demand creation.
The goal is to rapidly establish a “battery-swap EV motorcycle + standardized battery-swap station network” across South Korea. This system aims to advance the electrification of delivery bikes, eliminate charging wait times, standardize fragmented specifications through national regulation, and promote high-performance electric motorcycles. The strategy seeks to drive low-quality, low-cost vehicles out of the market. If sustained, the system will likely create a structure in which those controlling the battery pack, swap station, and subscription model will profit more than manufacturers selling vehicles alone. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
