DECEMBERASIA BUSINESS OUTLOOK9KOREAN EV MARKET HEATS UP AS CHINA AND EUROPE EXPANDNEWSROOMKorean EV makers are experiencing intensifying competition as Chinese and European electric vehicle brands rapidly expand their presence in South Korea.This shift comes amid a significant rise in government support, with Korea allocating KRW 936 billion (US$634 million) in EV subsidies for 2026, a 20 percent increase from the previous year.Chinese automaker BYD has already become Korea's fourth-largest imported EV brand, selling 3,791 units from January to October 2025, following Tesla, BMW, and Audi. Additional Chinese brands are entering the market: Zeekr, under Geely Group, will launch sales in Q1 2026 after completing regulatory requirements, while Xpeng is preparing for a 2026 debut after establishing its Korean subsidiary.European manufacturers are also accelerating expansion. Mercedes-Benz Korea will release two new EVs next year, Porsche Korea will roll out the electric Cayenne SUV, and Volvo Car Korea plans to introduce the EX90 and ES90 by mid-2026. In response, local companies, including Hyundai's Genesis, are preparing new EV models.Under Korea's 2025 EV subsidy reform, automakers must meet higher standards to receive full benefits, including long driving range, faster charging, abnormal detection safety systems, product liability insurance, and sharing real-time state-of-charge data. Vehicles under 440 km range face deeper subsidy cuts, and price caps may drop from KRW 55M to KRW 53M in 2026 potentially affecting brands like BYD. Growing subsidies and rising foreign EV launches are expected to accelerate nationwide charging infrastructure expansion.This creates major opportunities for hardware and soft-ware firms involved in DC fast chargers, payment systems, network management, and roaming partnerships, particu-larly as Korea targets five-minute charging by 2030. UBTech Robotics continues to accelerate its ambitious expansion plans with a fresh HK$3.1 billion (approximately US$400 million) share placement on the Hong Kong Stock Exchange. The company is issuing 31,468,000 new shares at HK$98.80 each, representing an 11.4 percent discount from the previous day's closing price.Despite a mild 2.3 percent drop at the market open following the announcement, UBTech's stock remains a standout performer in 2024, delivering an impressive 98.2 percent increase year-to-date. This latest capital raise marks the company's sixth and largest funding round since August 2024, bringing its total fundraising to HK$4.4 billion within just a few months.Around 75 percent of the newly raised funds will be channelled into strengthening supply-chain investment, forming industry partnerships, and exploring joint ventures aimed at scaling production and accelerating commercialization.Additionally, UBTech plans to allocate 15 percent of the proceeds toward business operations and emerging innovation projects, while the remaining 10 percent will be used to settle existing loan obligations.The company's growth momentum is further supported by newly secured commercial contracts, including a recent 159 million yuan (US$22 million) robotics order from a company based in Zigong, Sichuan. This comes shortly after its second-largest deal worth 250 million yuan (US$35.2 million) signed in September.As the first robotics company listed in Hong Kong, UBTech is positioning itself at the forefront of the intelligent automation industry. With strong investor interest and rising commercial adoption, the company is driving the future of AI-powered humanoid robotics worldwide. UBTECH ROBOTICS SECURES HK$3.1B SHARE PLACEMENT TO BOOST GROWTH· Korea boosts EV subsidies to KRW 936 billion for 2026, up 20 percent· Chinese and European EV makers accelerate Korean market entry· New subsidy rules push brands toward longer range and faster charging· UBTech to raise HK$3.1B from discounted share placement to fuel expansion.· Strategic focus on supply chain, partnerships, and high-growth robotics operations.· Strong commercial traction with major robotics orders in China.
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