South Korea has implemented a revised subsidy scheme for electric buses in 2025 to boost the local industry and address concerns over the rising presence of Chinese-made buses. The Ministry of Environment announced new guidelines favoring manufacturers of hydrogen and school buses, with additional incentives such as infrastructure subsidies and performance-based criteria. Hyundai Motor Company and other local manufacturers stand to benefit from these changes. The subsidy structure includes caps for different bus sizes and provisions for battery safety subsidies. To ensure safety and technological advancement, performance criteria have become more stringent, favoring domestic batteries over foreign ones. Transparency measures have been introduced to prevent opaque practices and encourage fair competition. The subsidy system also extends to electric freight vehicles, with incentives for fast charging capabilities and extended range. These changes reflect South Korea's commitment to sustainable transportation and domestic industry growth, aiming to reduce foreign dominance in the market and promote homegrown innovation. The comprehensive overhaul seeks to strike a balance between market competition and support for local manufacturers, aligning with the country's broader goal of advancing the electric vehicle sector.