Zeekr, BYD Expand in South Korea, Challenge Hyundai-Kia Dominance

Chinese EV Makers Enter South Korea Market

Chinese electric vehicle makers are expanding into South Korea’s automotive market. Zeekr, owned by Geely, opened its first showroom in Seoul, while BYD widened its vehicle lineup to compete with domestic leaders Hyundai and Kia, according to an industry source cited by The Korea Herald.

Market Growth and Chinese EV Share

South Korea registered 220,177 new electric vehicles in 2025, according to the Korea Automobile and Mobility Association. Chinese-made EV sales increased 112.4% year-over-year to 74,728 units, capturing 33.9% of the South Korean EV market in 2025.

Zeekr’s Product Launch Strategy

Zeekr plans to launch the 7X sport utility vehicle in South Korea during the second half of 2026. The vehicle will be priced between 50 million won (US$35,000) and 60 million won (US$41,000), positioning it near Hyundai’s Ioniq 5. The 7X features 800-volt fast charging capability and some versions include LiDAR, a laser-based sensing system for driver assistance.

BYD’s Market Performance

BYD achieved more than 10,000 vehicle sales approximately 15 months after its January 2025 launch in South Korea. The company operates more than triple the number of showrooms compared to Tesla in the South Korean market.

South Korea Subsidy Rule Changes

South Korea is revising electric vehicle subsidy regulations in ways that could affect foreign automakers. Beginning in April 2026, a new scoring system will require carmakers to earn at least 80 of 100 points to qualify for passenger-car subsidies. The scorecard evaluates industrial contribution, local supplier engagement, technology transfer, domestic research and development, domestic job creation, and service-network coverage.

South Korea has also modified subsidies for battery-electric buses by raising energy-density requirements. The new standards favor nickel manganese cobalt (NMC) battery packs supplied by South Korean manufacturers including LG Energy Solution, SK On, and Samsung SDI, while making it more difficult for lithium iron phosphate (LFP) batteries commonly used by Chinese brands to qualify.

FAQ

What is Zeekr’s pricing strategy in South Korea compared to other markets?

Zeekr’s 7X SUV will be priced between 50 million won (US$35,000) and 60 million won (US$41,000) in South Korea. According to available information, this represents a premium of more than 10 million won (US$6,900) above pricing in China, with potential reductions in LiDAR sensors and chipsets to comply with local regulations.

How do South Korea’s new subsidy rules affect foreign EV makers?

The revised subsidy scorecard introduced in April 2026 requires carmakers to achieve at least 80 of 100 points, with evaluation criteria including domestic supplier work, local R&D investment, job creation, and service-network coverage. Foreign automakers may need broader service networks and deeper local ties to maintain subsidy eligibility under the new framework.

What is the market share of Chinese EVs in South Korea?

Chinese-made electric vehicles captured 33.9% of South Korea’s EV market in 2025, with sales of 74,728 units representing a 112.4% year-over-year increase, according to the Korea Automobile and Mobility Association.