In the “Land of the Morning Calm”, the peace is being eroded by widespread skepticism due to a spate of EV car fires. Local media have dubbed it “EV-phobia”.
South Korean authorities demand transparency from electric vehicle makers amid rising battery fires and declining consumer confidence
In response to such incidents, South Korean authorities have urged carmakers to increase transparency by disclosing their battery suppliers.
On August 1, a Mercedes-Benz EV caught fire at an underground parking facility in Incheon, leading to more than 8 hours of firefighting efforts that left 23 people hospitalised. It also damaged around 140 vehicles, and disrupted power and water supply to 1,600 homes for a week.
Shortly after, a Kia EV6 caught fire in South Chungcheong Province, burning for more than 90 minutes before it was brought under control.
Vehicle batteries are suspected to be behind both the incidents.
South Korea's National Fire Agency reported 72 EV-related fire incidents in 2023, a significant increase from 24 in 2021. Of the 130 incidents in the past three years, 68 occurred while the engines were running, 36 while parking and 26 while charging.
Next, batteries made in China are on the radar, and these were from Farasis Energy, including the Mercedes-Benz Incheon fire. A series of similar incidents has led to a decline in consumer confidence in EVs.
EV bookings and popularity decline despite corrective measures
To combat the loss of confidence, automakers have begun disclosing battery supplier information on their websites. This practice is already common in the European Union, but has only recently been made mandatory in South Korea.
Mercedes-Benz Korea, which was initially criticised for its response, has now pledged to pay 4.5 billion won ($3.4 million) in compensation and is considering additional financial support and a possible refund.
Despite these corrective measures, the electric vehicle market in the country has declined. Registrations fell by 13.4% from January to July compared to last year.
Consumers such as Lee Eun-koo and Park Jung-won express concern over EV safety, and urge both manufacturers and the government to impose strict regulations and ensure vehicle safety to restore confidence and maintain the economic vibrancy of the industry.
