Seoul to introduce new insurance plans for electric cars

The South Korean government plans to introduce new insurance plans for electric cars as early as September, officials said Wednesday.

The new plans are expected to help users of eco-friendly cars pay less insurance. 

Models pose with Hyundai Motor’s Ioniq hybrid cars. (Yonhap)

The Ministry of Trade, Industry and Energy and the Financial Services Commission are scheduled to sign a memorandum of understanding with the Korea Insurance Development Institute and other relevant agencies later in the day to develop such programs, according the officials.

The government has also agreed with local carmakers to set up and run a joint consultative body for the project.

Currently, electric car users pay up to 400,000 won ($324) more as the price for their vehicle is higher due mainly to expensive batteries. The new insurance is expected to reduce these costs, industry watchers said.

(khnews@heraldcorp.com)