Plans for electric cars in the pipeline in S. Korea

The South Korean government plans to introduce new insurance plans for electric cars as early as September, officials said.

The new plans are expected to help users of eco-friendly cars pay less insurance, according to a report in the Korea Herald. 

The Ministry of Trade, Industry and Energy and the Financial Services Commission are scheduled to sign a memorandum of understanding with the Korea Insurance Development Institute and other relevant agencies to develop such programs, according to the officials.

The government has also agreed with local carmakers to set up and run a joint consultative body for the project.

Currently, electric car users pay up to KRW400,000 (USD324) more as the price for their vehicle is higher due mainly to expensive batteries. The new insurance is expected to reduce these costs, industry watchers said.