South Korea plans early phaseout of combustion cars

The South Korean government is reviewing plans to restrict domestic sales of internal combustion vehicles, including gasoline and diesel cars, starting in 2035 to meet its greenhouse gas reduction targets. In contrast, the European Union, which has led global decarbonization efforts, is reportedly considering delaying its own ban on internal combustion vehicle sales. As the world’s seventh-largest car producer, South Korea faces calls to balance environmental goals with economic realities.

The Ministry of Environment is considering restricting sales of internal combustion vehicles to meet the “2035 national greenhouse gas reduction target,” or NDC. NDCs set each country’s emissions reduction goals for the coming decade and are updated every five years; South Korea is expected to announce its 2035 target this November. Officials are considering four scenarios that would cut emissions by 48%, 53%, 61%, or 65% from their 2018 peak. Critics had argued that the previous administration’s 40% reduction target by 2030 was overly ambitious, meaning the new goals could be even more challenging.

The ministry says a reduction target above 60% would be unattainable without measures such as banning internal combustion vehicle sales, similar to EU regulations. Environment Minister Kim Sung-hwan said, “We need to reduce internal combustion vehicles at twice the current pace.” Hyundai Motor has set a goal of ending internal combustion vehicle sales in major markets, including South Korea, the U.S., and Europe, by 2040, and worldwide by 2045. A higher national emissions target would effectively move up the timeline for restricting domestic sales by five years.

However, the EU is expected to delay its timeline. Officials cite concerns over potential job losses in the automotive industry, overreliance on Asia for electric vehicle batteries, and insufficient charging infrastructure. In the U.S., California plans to allow only zero-emission vehicle sales starting in 2035, but the Trump administration has opposed a rapid transition to green vehicles, even cutting EV subsidies next month, triggering conflicts over the pace of change.

As a responsible member of the international community, South Korea cannot ignore global climate change efforts. At the same time, it cannot disregard current economic realities or shifts in international environmental policy. South Korea’s automotive industry is already engaged in fierce competition while facing U.S. tariffs 10 percentage points higher than those applied to Japan or the EU. Setting overly ambitious emissions reduction goals and hastening the phaseout of internal combustion vehicles could effectively handcuff the industry, undermining its global competitiveness.