At a time when we must kill two birds with one stone: economic revitalization and carbon reduction, the policy to popularize electric vehicles has stalled.


As of 2024, the cumulative number of electric and hydrogen vehicles distributed in Korea is only 720,000.

Electric vehicle sales are expected to fall 9.7% year-on-year in 2024, and the government has pledged to invest 1.5 trillion won in 2025 alone to revive stagnant demand.

Despite these massive investments, it is difficult to deny that safety issues such as fires and the lack of charging infrastructure are increasing market uncertainty and reducing the effectiveness of electric vehicle adoption.

On the other hand, the fuel subsidy paid by the Ministry of Land, Infrastructure and Transport is expected to increase to KRW 785.2 billion in 2023 and KRW 891.2 billion in 2024, worsening the burden on national finances.

The transportation sector accounts for 16% of the country's greenhouse gas emissions, with commercial vehicles such as trucks and taxis responsible for 79.9% of these emissions, necessitating effective measures targeting this sector to achieve carbon neutrality goals.

Therefore, it is important to efficiently coordinate the conflicting characteristics of maintaining fuel subsidies for economic stimulation and reducing carbon emissions. I would say that is the key.

Among these, the Idle Stop & Go (ISG) is a system that reduces idling by turning off the engine when waiting at a traffic light or when stopped.

According to a press release from the Ministry of Environment, vehicles equipped with ISG devices showed an average fuel efficiency improvement of approximately 14% during city driving.

If this is applied to 370,000 trucks and 250,000 taxis, which are eligible for fuel subsidies, it can result in an annual subsidy savings of approximately KRW 130.1 billion, and the cumulative savings over five years will amount to KRW 650.5 billion.

It also has great environmental value. A Seoul City demonstration project confirmed that each ISG-equipped vehicle can reduce carbon dioxide emissions by up to 2.16 tons per year.

If this is expanded to all commercial vehicles, it can reduce carbon dioxide by approximately 1,486,000 tons, which is equivalent to KRW 127 billion when converted to the carbon emission price level (KRW 8,600 per ton as of July 2025).

Additionally, if the European carbon emission price level (approximately 10 euros per ton, or about 160,000 won in Korean currency) is applied, the same reduction amount is estimated to be approximately 2.38 trillion won.

This shows that the environmental value and economic impact of ISG are much greater when viewed from an international perspective.

It would be more appropriate to call this a preemptive investment, as the government can recover its financial resources through reduced oil subsidies and increased domestic and international carbon emissions value after investing in ISG support.

Recently, the spread of electric vehicles has been hindered by several reasons, including lack of cost-effectiveness.

This delay in subsidies is likely to delay distribution for 3 to 4 years, and it will also be difficult to distribute electric vehicles all at once.

Of the approximately 26 million vehicles registered in Korea, more than 20 million are internal combustion engine vehicles, and the actual carbon reduction through the spread of electric vehicles is limited.

In other words, a practical device is required to reduce carbon emissions from the majority of internal combustion engine vehicles. The ISG mentioned above is the device that is most effective in reducing carbon emissions and saving fuel.

The effect is also more meaningful because it is objectively more accurate.

Therefore, it is necessary to confirm why ISG is more realistic than electric vehicle subsidies.

First, electric vehicle subsidies require a large budget. The Ministry of Environment plans to spend 1.5 trillion won to promote electric vehicle purchases by 2025.

This approach is not very efficient, considering the current decline in electric vehicle sales and infrastructure issues. On the other hand, ISG devices cost hundreds of thousands of won per vehicle, and if the government provides a certain amount of initial support, fuel efficiency improvements and fuel subsidy savings can be realized in the short term.

This system utilizes existing internal combustion engine vehicles, eliminating the need for expanded charging infrastructure. If expanded, the carbon reduction effect of 20 million vehicles could be maximized.

Second, it also faces the challenges of carbon emissions generated during the electric vehicle manufacturing process and the battery raw material supply chain.

Research suggests that producing a single electric vehicle requires seven to ten years of operation to generate a carbon tax that can be accurately quantified.

On the other hand, ISG technology improves the engine control system of existing vehicles, has virtually no carbon emissions during the manufacturing stage, and provides immediate sales reduction.

Third, electric vehicle subsidies are often criticized as delaying large corporations because they tend to cover the increased price of electric vehicles.

As of 2024, the national subsidy will be paid up to a maximum of 6.5 million won, and the price ceiling is 85 million won.

This structure focuses benefits on high-priced vehicles, resulting in low carbon reduction efficiency relative to budget. ISG device subsidies can be funded by savings from fuel subsidies and the value of carbon emissions credits, minimizing the controversy over tax waste.

As a result, a realistic approach to carbon neutrality and budget efficiency is required.

First, the ISG installation support system is introduced. A reasonable subsidy system should be designed, financed by savings from fuel subsidies and carbon reductions, and the initial burden on transport operators should be reduced to expand private sector participation.

The second is the expansion of the Ministry of Land, Infrastructure and Transport's pilot project. We must collaborate with major local governments to expand the pilot project, focusing on trucks and taxis, and accumulate data on improved fuel efficiency and greenhouse gas reductions to objectively verify the policy's effectiveness.

The third is strengthening inter-ministerial cooperation. We must work with the Ministry of Strategy and Finance, the Ministry of Environment, and others to incorporate the introduction of ISG into the carbon-neutral fiscal strategy and strengthen institutional support linked to the Clean Air Conservation Act and local government ordinances.

With government finances limited, policies that spend over 1 trillion won to promote electric vehicle purchases are constantly raising questions about their effectiveness.

Of course, electric vehicle subsidies are a welcome gesture and will have a significant impact in the future, but the pace of electric vehicle adoption is slower than expected, and sales are actually declining.

On the other hand, it is a practical solution that reduces idling while driving, immediately improving fuel efficiency and simultaneously reducing fuel subsidies and carbon emissions.

Expanding the use of ISG in commercial vehicles can simultaneously achieve national fiscal and environmental goals, reducing the annual financial burden by KRW 130.1 billion and reducing carbon dioxide emissions by up to 1.48 million tons.

It is time to reevaluate green policies from a cost-effectiveness perspective and adopt realistic alternatives.

There was a brief period of interest in ISG about a decade ago, but the mood cooled as concerns about battery life and reduced motor life became apparent.

Since then, this issue has been completely resolved, and I can say there are no problems at all. It's time to re-establish interest in ISG.