Chinese electric vehicle giant BYD’s launch in Korea has been at a standstill for a month, as its Atto 3 SUV has failed to meet one of the Environment Ministry’s criteria for EV subsidies.
According to industry sources Thursday, BYD Korea is still waiting for the ministry to approve the subsidy after the company committed to adding the "State of Charge" feature to limit the maximum charge level to below 100 percent to prevent overcharging via a software update within this year.
In 2025, the ministry has strengthened subsidy qualifications, requiring all EVs to include the SoC feature. BYD Korea’s initial application was rejected earlier this year, prompting the company to resubmit the necessary documents in late February.
“We are uncertain when the Atto 3 will be delivered to customers. It is up to the government authorities,” said a BYD Korea official. “The Environment Ministry has granted a grace period for the SoC requirement until Dec. 31 this year, so they might consider approving the subsidy for the Atto 3.”
The ministry stated that it typically takes up to a month to decide on EV subsidies. With combined incentives from the ministry and municipal governments, total subsidies can range from several million to tens of millions of won, depending on the vehicle’s price. For the Atto 3, the ministry’s subsidy is estimated at around 2 million won ($1,390).
BYD Korea’s key selling point has been its budget-friendly EV pricing — starting from as low as 29 million won. If the Atto 3 remains ineligible for subsidies, it risks losing its price advantage against Hyundai and Kia, which collectively captured 67.2 percent of the Korean EV market in the first half of last year, according to Transport Ministry data.
Industry insiders suggest that the delay in the flagship SUV’s launch may stem from BYD’s rushed entry into the market without fully understanding the revised subsidy regulations. The company is also facing backlash from frustrated preorder customers over a lack of communication regarding delivery delays.
At its brand launch event on Jan. 16, BYD Korea began taking preorders for the Atto 3, promising delivery by mid-February. Within a week, preorders had surpassed 1,000 vehicles.
By Byun Hye-jin (hyejin2@heraldcorp.com)
