Corporations that have entered the electric vehicle charging market have announced fee increases one after another. The expansion of charging infrastructure and the expense of investment for market dominance are steadily rising, but the prolonged slump in electric vehicle sales seems to be increasing the burden.
SK E-LINK will increase fast and slow charging fees by 11% to 15% starting on the 18th. The fast charging fee will rise from 385 won per kilowatt-hour (kWh) to 430 won, while the slow charging fee of 288 won (public charging station) and 255 won (apartment charging station) will be raised to 320 won and 295 won, respectively. As a result, the cost of fully charging Hyundai's new Ioniq 5 with an 84 kWh battery at a public charging station will increase from 24,192 won to 26,880 won, an increase of 2,688 won. If assuming a fast charger is used, the fee for a full charge will rise by about 3,780 won, from 32,340 won to 36,120 won.
SK E-LINK stated that it will raise charging fees to alleviate difficulties caused by rising operating expenses and will work on service improvements. SK E-LINK has around 8,601 charging units (4,441 slow, 4,160 fast), but approximately 2,000 charging units operating at highway rest areas and some promoting apartments will not raise prices.
According to year-end figures, the top private operator, startup Chaebi, will increase its medium-speed (30 kW) charging fees from 290 won per kWh to 315 won, an increase of about 8.6%, and its slow charging fees from 250 won to 275 won, a 10% increase. Chaebi's medium-speed fees have not been adjusted since September 2023, and slow fees have not changed since November 2022.
Corporations that have entered the charging business expected that even though there were initial installation expenses for chargers, achieving economies of scale would be possible as the overall market grows; however, the impact of the electric vehicle chasm is increasing the burden. With the rise in electricity rates, the cost burden is growing, and raising charging fees is also challenging due to backlash from electric vehicle users. If charging fees increase, the advantage of electric vehicles, which have lower maintenance costs compared to internal combustion engine vehicles, may disappear, potentially leading to a decrease in demand.
According to the Korea Smart Grid Association, the number of electric vehicle chargers in South Korea surged from 34,714 in 2020 to 192,948 in 2022, 288,148 in 2023, and 394,132 last year. The 'car-to-charger ratio' per charger is around 1.7 cars. Most of the major domestic corporations, including SK, Hyundai Motor, LG, Hanwha, GS, and LS, have entered the electric vehicle charging business.
There are also projections that if electric vehicle sales recover in the medium to long term, the charging infrastructure market will grow. SNE Research estimates that the domestic electric vehicle charging market size will grow from 600 billion won in 2020 to approximately 32 trillion won by 2030, with an average annual growth rate of about 45%. The government aims to supply 4.2 million electric vehicles and establish more than 1.23 million chargers by 2030.