Chinese-made vehicles captured 35.3% of South Korea’s electric-vehicle market from January through July, up from 12.6% in 2023 and 1.1% in 2021. The rapid increase has prompted warnings that South Korea could suffer a collapse similar to Italy’s, where vehicle production fell from 2 million units annually to 238,000 last year and dragged down the parts ecosystem. Speakers at an Sept. 18 seminar in Seoul called for a domestic EV production tax credit, continued purchase subsidies, investment and research support, and stronger core supply chains. South Korea applies an 8% tariff to Chinese passenger vehicles, compared with China’s 15% tariff on South Korean vehicles, while the United States and European Union impose substantially higher barriers. Analysts and industry officials attributed Chinese manufacturers’ advantage to government support, integrated supply chains, lower costs and scale.