DECEMBERASIA BUSINESS OUTLOOK8NEWSROOMKOREAN EV MARKET HEATS UP AS CHINA AND EUROPE EXPANDKorean 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 software firms involved in DC fast chargers, payment systems, network management, and roaming partnerships, particularly as Korea targets five-minute charging by 2030. · JTC and NUS partner to develop Testbed 2.0 focused on tropical-climate data-centre efficiency.· The initiative aims to reduce carbon emissions via sustainable cooling and smart energy management.· Jurong Island is being positioned as Singapore's key hub for low-carbon industrial innovation.JTC Corporation (JTC) and National University of Singapore (NUS) have signed a memorandum of understanding to study the establishment of the Sustainable Tropical Data Centre Testbed 2.0.The announcement was made by Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, during the 25th anniversary dinner of Jurong Island. The new testbed builds on earlier developments and focuses on developing energy-efficient data-centre technologies tailored for tropical climates.It will examine sustainable cooling systems and advanced energy-management practices with the aim of drastically reducing carbon emissions from data-centre operations.Jurong Island was specifically highlighted as a site for advancing low-carbon infrastructure. In his remarks, Gan emphasised the critical role that public-private partnerships and collaborations between government agencies and research institutions play in supporting industrial development and sustainability initiatives.This announcement aligns with Singapore's long-term industrial planning--positioning Jurong Island as a hub for energy, chemicals, and new technologies. The facility is part of a broader push to transform the island into a "living testbed" for sustainable industrial innovation. JTC & NUS LAUNCH SUSTAINABLE TROPICAL DATA CENTRE TEST BED 2.0
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