The government is preparing various support measures to vitalize the domestic mobility industry. This newsletter provides an overview of the latest government support policies for the mobility industry and their implications.¹

1. Post-Korea-U.S. Tariff Negotiations Support Measures

1. Key Contents

On September 3, 2025, the Ministry of Trade, Industry and Energy (MOTIE) announced follow-up support measures in response to the imposition of the mutual tariffs (15%) and automobile tariffs (15%) by the United States.

These measures focus on urgent support for companies affected by the tariffs, which includes expanding the scope of a 13.9 trillion KRW policy fund in the short term, increasing the per-company loan limit tenfold (from 2 billion KRW to 30 billion KRW for small and medium-sized enterprises (SMEs) and from 5 billion KRW to 50 billion KRW for mid-sized companies), and an additional 0.3% interest rate reduction. Furthermore, the plan includes providing up to 27 billion KRW in trade insurance, providing and expanding support for export vouchers and logistics costs, implementing industry-specific plans to stimulate domestic demand and protect domestic industries, and promoting global market entry by expanding support for exhibitions and fairs. It also involves marketing support to enhance export competitiveness by industry and establishing mid-to-long-term competitiveness enhancement plans for key industries.

Specific follow-up support measures for the mobility industry include 1) the introduction of an electric vehicle (EV) conversion subsidy (for a new EV purchase after disposing of an internal combustion engine vehicle), and 2) the establishment of the 'AI Future Car Competitiveness Enhancement Plan' to promote the development of key technologies for AI autonomous driving based on SDV² and the widespread adoption of eco-friendly vehicles (such as demand-specific multipurpose EVs, hydrogen engine cars, and range-extended EVs) and to secure the necessary budget.

2. Implications

Government support for mobility export companies is expected to expand from 2026 in response to the automobile tariffs imposed by the U.S. In particular, the new EV conversion subsidy is anticipated to boost domestic demand for electric vehicles. Additionally, the budget allocation and establishment of plans for technology development are expected to spur technology development among mobility companies and related research institutions.
 
In this regard, we at Lin LLC will continue to monitor legislative amendments related to the new EV conversion subsidy and details thereof, as well as the contents of the technology development plans to provide helpful information.

2. Customized Local Government Support for Urban Air Mobility

1. Key Contents

On August 26, 2025, the Ministry of Land, Infrastructure and Transport (MOLIT) announced that it would promote customized and phased support for Urban Air Mobility (UAM) by region. The support will be provided through budget allocations, integration of R&D and real-world demonstrations, and consulting from specialized agencies.

MOLIT's plans include providing budget support to Jeju (for the design of vertiports ³ for tourist routes), Daegu and Gyeongbuk (for the establishment of business plans and vertiport design for public-oriented projects, such as forest fire surveillance and highway accident monitoring), and Jeonnam and Gyeongnam (for institutional support, such as designating pilot operation zones for the Southern region's integrated tourism development plan). Additionally, it will select locations to construct infrastructure for research and demonstrations and support the integration of pilot projects in Ulsan (building a vertiport at a technology development and demonstration site for the alternative transportation network plan) and Seoul, Gyeonggi, and Incheon (constructing urban demonstration facilities and integrating pilot projects to plan airport shuttle routes). Business consulting support will also be provided for Busan (a project to integrate transportation and tourism) and Chungbuk (using UAM in response to disasters, such as forest fires).

2. Implications

MOLIT's support measures are expected to expand and vitalize UAM projects in each local government. Accordingly, it is necessary to ascertain the status of each local government's UAM projects, and to prepare strategies and meet the necessary legal conditions for participation.

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LIN has extensive experience in providing advisory and litigation services in the mobility industry, particularly in areas such as administrative regulations and patent and trade secret disputes related to motor vehicles. Our Mobility Team consists of attorneys and experts with a distinctive interest and passion for automobiles.

Should you wish to learn more about this newsletter or have any other inquiries, please do not hesitate to contact our firm’s Mobility Team.