EV Exports Losing Ground to China… 2.2 Trillion Won at Risk by 2030

Korea's electric vehicle exports are being overtaken by China. In a report released on the 4th, the Federation of Korean Industries analyzed that while the share of EVs (battery-only vehicles) in global new car sales has been growing, Korea's share has been shrinking. As a result, it concluded that exports worth about 2.2 trillion won could be jeopardized in competition with China by 2030.

According to the report, the share of EVs in global new car sales expanded roughly tenfold, from 2.6 percent in 2019 to 25.0 percent last year. However, Korea's share of global EV exports fell from 8.9 percent to 4.6 percent over the same period. In the domestic market, too, the share of Korean-made EVs dropped from 73.7 percent to 57.0 percent.

The reversal was also confirmed in competitiveness indicators. Korea's revealed comparative advantage (RCA) index fell to 1.48 last year, while China recorded 1.49, edging past Korea. On the trade specialization index (TSI), China surged to 0.97 while Korea slipped to 0.50.

Lee Sang-ho, head of the FKI's economic research division, noted, "Backed by strong government support, China's EV industry is rapidly seizing the future automotive market." He emphasized, "Policy support measures such as domestic production tax credits should be considered to expand Korea's EV production base."