South Korea Electric Truck Market

South Korea Electric Truck Market Overview:

The South Korea electric truck market size reached USD 16.20 Million in 2024. The market is projected to reach USD 169.16 Million by 2033, exhibiting a growth rate (CAGR) of 26.44% during 2025-2033. The market is fueled by the country's strong regulatory push for carbon neutrality, with government subsidies and tax incentives accelerating the adoption of electric commercial vehicles. Furthermore, rising fuel prices and the logistics industry's growing focus on lowering the total cost of ownership are prompting fleet operators to transition toward electric trucks. Apart from this, advancements in battery manufacturing by domestic players are supporting large-scale deployment, thereby augmenting South Korea electric trucks market share.

South Korea Electric Truck Market Trends:

Government Policy Support and Incentives

The market is witnessing strong momentum due to the government’s robust policy framework aimed at reducing greenhouse gas emissions and achieving carbon neutrality by 2050. Moreover, the Ministry of Environment and the Ministry of Trade, Industry, and Energy have rolled out subsidies for commercial EV adoption, covering a significant portion of purchase costs and charging infrastructure development. According to industry reports, the government plans to allocate KRW 1.5 Trillion (about USD 1.02 Billion) in 2025 to stimulate consumer EV purchases. Beyond financial incentives, regulations mandating stricter emission standards are pushing logistics and transportation companies to adopt electric fleets. Additionally, low-emission zones in urban areas, particularly in Seoul and Busan, are accelerating demand for electric trucks as businesses seek compliance while reducing operational restrictions. In addition to this, government-backed research and development (R&D) initiatives are also fostering collaboration between domestic automakers, technology providers, and battery manufacturers to improve vehicle performance and lower production costs. These policy-driven measures create a favorable ecosystem for large-scale adoption, positioning electric trucks as a central component of South Korea’s sustainable mobility transition.

Advancements in Battery and Charging Infrastructure

Battery technology and charging infrastructure development are pivotal trends shaping the electric truck market growth. Local battery manufacturers are leading innovations in high-density lithium-ion and solid-state batteries, extending driving ranges while reducing charging times. According to industry reports published in March 2024, Hyundai will invest KRW 68 Trillion (about USD 51 Billion) over three years in South Korea, with over half directed to research and development (R&D) and assembly lines for EVs, which include battery and production infrastructure as part of its electrification strategy. These advancements directly address concerns about payload efficiency and long-haul capabilities, making electric trucks increasingly viable for logistics and heavy-duty operations. Parallel to this, the government and private sector are jointly investing in fast-charging networks across highways, industrial zones, and urban logistics hubs. Pilot projects focusing on ultra-fast charging and battery-swapping stations are also gaining traction to minimize downtime for commercial fleets. Furthermore, integration with smart grid technologies ensures that charging stations are energy-efficient and capable of balancing peak demand. This synergy between advanced battery solutions and expansive charging infrastructure not only enhances operational feasibility but also builds confidence among fleet operators in adopting electric trucks for large-scale deployment.

Fleet Electrification by Logistics and E-commerce Companies

The surge in e-commerce and last-mile delivery demand is a major driver of electric truck adoption among logistics and distribution companies in South Korea. Firms are increasingly investing in electric truck fleets to optimize operational efficiency, lower fuel costs, and meet sustainability commitments. These companies are responding to consumer expectations for eco-friendly delivery services, aligning corporate strategies with global ESG (Environmental, Social, and Governance) standards. The adoption of electric trucks also provides businesses with a competitive advantage in winning contracts from multinational corporations that prioritize green supply chains. Moreover, logistics hubs are collaborating with automakers to develop custom-built electric trucks tailored to urban delivery requirements, ensuring compatibility with narrow city streets and frequent stop-and-go traffic. Partnerships between fleet operators, technology firms, and energy providers are further streamlining the integration of EVs into large-scale logistics networks, reinforcing the role of commercial fleets as early adopters in the market.

South Korea Electric Truck Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on vehicle type, propulsion, range, and application.

Vehicle Type Insights:

• Light-duty Truck
• Medium-duty Truck
• Heavy-duty Truck

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes light-duty truck, medium-duty truck, and heavy-duty truck.

Propulsion Insights:

• Battery Electric Truck
• Hybrid Electric Truck
• Plug-in Hybrid Electric Truck
• Fuel Cell Electric Truck

A detailed breakup and analysis of the market based on the propulsion have also been provided in the report. This includes battery electric truck, hybrid electric truck, plug-in hybrid electric truck, and fuel cell electric truck.

Range Insights:

• 0-150 Miles
• 151-300 Miles
• Above 300 Miles

The report has provided a detailed breakup and analysis of the market based on the range. This includes 0-150 miles, 151-300 miles, and above 300 miles.

Application Insights:

• Logistics
• Municipal
• Construction
• Mining
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes logistics, municipal, construction, mining, and others.

Regional Insights:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Korea Electric Truck Market News:

• In August 2025, Tesla Korea announced the official launch of the electric pickup truck (EV truck) Cybertruck in South Korea, with deliveries to begin nationwide on August 29, 2025. Two variants will be offered: an All‑Wheel Drive (AWD) model with an estimated driving range of 520 km, and the premium “Cyberbeast” trim with 496 km. The Cybertruck is priced at KRW 145 Million for the AWD version and KRW 160 Million for the Cyberbeast.
• In February 2025, KG Mobility unveiled the Musso EV, the first electric pickup from its Musso sub-brand, marking South Korea’s entry into the electric pickup segment. The vehicle is built on a unibody platform, powered by an 80.6 kWh LFP “blade” battery, and features vehicle-to-load (V2L) capability with a deck load capacity of around 500 kg. Designed with both practicality and comfort in mind, it offers second-row seats with sliding and reclining functions, positioning the Musso EV as a versatile choice for urban and utility-focused applications.

South Korea Electric Truck Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Korea electric truck market performed so far and how will it perform in the coming years?
• What is the breakup of the South Korea electric truck market on the basis of vehicle type?
• What is the breakup of the South Korea electric truck market on the basis of propulsion?
• What is the breakup of the South Korea electric truck market on the basis of range?
• What is the breakup of the South Korea electric truck market on the basis of application?
• What is the breakup of the South Korea electric truck market on the basis of region?
• What are the various stages in the value chain of the South Korea electric truck market? 
• What are the key driving factors and challenges in the South Korea electric truck market?
• What is the structure of the South Korea electric truck market and who are the key players?
• What is the degree of competition in the South Korea electric truck market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea electric truck market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea electric truck market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea electric truck industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.