Why Koreans in their 20s are ditching gas cars for EVs

Ki, a 29-year-old man in Seoul, drives an hour every day from the Gaepo neighborhood to Banghwa, on the other side of the city, then drives back. When he drove a gasoline car, he spent more than 400,000 won ($295) a month on fuel.

He bought a Tesla Model Y in August, and charging the vehicle costs less than 100,000 won a month. 

“I don’t have to worry about gas prices going up and down every month,” he said. “Long drives are a lot less stressful.”

Ki is just one of a fast-growing wave of young electric car buyers in Korea. People in their 20s bought 11,844 new EVs from January through August, up 130 percent from a year earlier and 14 times the number from the same period in 2021, according to market tracker CarIsYou.

Across all age groups, EV purchases rose 84.2 percent from last year and grew 7.2 times over five years, meaning the pace of those in their 20s was roughly double the average.

The surge comes even as fewer young people are buying cars. New-car purchases by people in their 20s fell from 82,772 in 2021 to 59,541 last year, while their EV purchases climbed every year, from 1,468 in 2021 to 7,862 last year.

Experts attribute the pattern to electric cars’ app-based charging and climate control, over-the-air software updates and large touch screens, which feel natural to a generation raised on smartphones.

“Older drivers find it hard to give up the gasoline cars that they know,” said Cho Chuel, a senior research fellow specializing in the automotive and Chinese industries at the Korea Institute for Industrial Economics & Trade.

“Since young people are often buying their first car, they are far more open to something new.”

Fuel prices are also a contributing factor. The national average price of gasoline was below 1,700 won a liter ($4.70 a gallon) in January but topped 2,000 won in April after the outbreak of the war between the United States and Iran. It has recently hovered in the high 1,800s, according to the Korea National Oil Corporation. 

“For young workers with little disposable income, prices near 2,000 won per liter are a heavy burden, and that has pushed many toward EVs,” said an automotive industry source. 

Electric cars have also become more affordable.

Tesla launched a round of price cuts early this year, and other automakers have introduced smaller models priced around 30 million won. In Seoul, the Casper Electric costs around 20 million won, and the EV3 Long Range comes to about 37 million won, including government subsidies. 

For buyers aged 19 to 34 purchasing an EV as their first car, the government also adds 20 percent to the national subsidy.

The change from gas cars to EVs, however, does not come without problems.

“The number of chargers in my apartment complex is fixed, but there are more and more electric cars, so people compete for spots,” Ki said. “Some leave their cars parked long after charging, and neighbors end up arguing.

BY SUK GYEONG-MIN, SARAH CHEA [[email protected]]