The South Korean government recently stated that it could study the proposal to impose countervailing duties on electric vehicles originating from China, drawing on the experience of the European Union.
According to a report by Yonhap News Agency on the 19th, a relevant person from the Ministry of Trade, Industry and Energy of South Korea said in a media interview on the 18th that if domestic companies or other stakeholders file a request for a countervailing investigation, a fair and transparent investigation will be conducted based on the subsidy agreement and the Customs Act. When asked whether the government is discussing tax issues in light of BYD's imminent entry into the South Korean passenger car market, the official mentioned that the EU imposes a final countervailing duty of over 10% on Chinese electric vehicles, and there are also provisions for imposing countervailing duties in South Korea's Customs Act. The official also stated that the South Korean government has established guidelines for the investigation standards, and if relevant companies submit a request for a countervailing investigation, the (Ministry of Industry) Trade Committee can conduct the investigation according to the guidelines.
Some South Korean media analysts believe that the government's release of this information is related to BYD's plan to enter the South Korean market in January next year. There are also voices suggesting that the likelihood of the South Korean government actually conducting an investigation is low. According to reports, BYD's South Korean company announced on the 17th that it has signed contracts with six local dealers and will officially launch passenger car sales in South Korea in January next year.
The South Korean &#34;Asia Daily&#34; reported that the market influence of Chinese automotive brands in South Korea is continuously expanding. BYD's total sales of commercial vehicles in Korea reached 829 units, with annual sales expected to exceed 1,000 units for the first time.
In response, independent automotive industry analyst Wu Shuo Cheng told the Global Times on the 17th that the market share of Chinese cars in South Korea is very limited, and the South Korean market itself is not large. Even if tariffs are increased, the impact on Chinese car companies will be very small. Wu Shuo Cheng believes that the South Korean government's announcement at this time is likely a form of &#34;policy declaration,&#34; opting for erroneous trade protectionist measures to protect its domestic automotive industry rather than choosing the correct approach of promoting innovation and common development through market competition.
Article authors: Mang Jiu Chen, Ni Hao, Source: Global Times, Original title: &#34;BYD to Sell Passenger Cars in South Korea, Is South Korea Nervous?&#34;
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BYD plans to sell passenger cars in the South Korean market in January next year, while the South Korean government is considering imposing anti-subsidy taxes on Chinese electric vehicles by drawing on the European Union's experience. The Ministry of Trade, Industry and Energy of South Korea stated that it will conduct an investigation based on subsidy agreements and the Customs Act. Although market analysis suggests that the market share of Chinese cars in South Korea is limited, the government's actions may be a policy declaration aimed at protecting its domestic automotive industry

- The South Korean government is considering implementing anti-subsidy taxes on electric vehicles from China, inspired by EU practices.  
- This discussion arises as Chinese automaker BYD plans to enter the South Korean passenger car market in January 2024, with local media suggesting the government's announcement is linked to this development.  
- Analysts believe that the actual impact of such taxes on Chinese car manufacturers will be minimal, viewing the government's stance as a protective measure rather than a competitive market strategy.

BYD will sell passenger cars in South Korea, is South Korea nervous?