French minister says EV subsidy policy not discriminatory against Korean carmakers

Minister of Trade, Industry and Energy Jang Young-jin, right, shakes hand with French Trade Minister Olivier Becht at Korea Chamber of Commerce and Industry in Seoul, Dec. 19. Courtesy of Ministry of Trade, Industry and Energy

French Trade Minister Olivier Becht said the electric vehicle (EV) subsidy policy of Paris is not discriminatory toward foreign carmakers, pointing out all models are eligible to win support as long as they meet carbon emission standards.

Becht, in an interview with Yonhap News Agency on Tuesday, also noted that the policy was aimed at decarbonizing the European nation's industry.

The remark came after Paris unveiled the list of cars eligible to win such subsidies last week encompassing 78 models of 22 brands, with Hyundai Motor's Kona SUV, manufactured in Europe, being the only Korean EV to be included.

The list, however, did not include models manufactured in Korea, including the Niro EV of Kia Corp. The French government provides subsidies ranging from 5,007 euros ($5,490) to 7,000 euros for consumers of EVs.

On the previous day, Korea's industry ministry expressed regret to Becht over the exclusion and requested the French government to expedite the complaint procedures for the Korean government and businesses.

Becht said although cars manufactured far from France, which may emit more carbon during the shipping process, might have less chance of qualifying for subsidies, the policy mainly evaluates carbon emissions and does not consider the nationality of manufacturers.

Touching on the bilateral energy cooperation, the French minister noted that the carbon-free energy policies of both countries align perfectly as they also consider nuclear energy.

Becht said while countries need to phase out traditional resources, such as gas, oil and coal, they also need sources that are capable of generating power without carbon emissions. (Yonhap)