More than half of the vehicles purchased or leased by agencies under South Korea’s Ministry of Climate, Energy, and Environment last year failed to meet zero-emission standards, according to data released on November 8, 2026, by Representative Lee Jong-bae of the People Power Party.
Public Sector Purchases Fall Short of Legal Mandates
Under the current Act on the Development and Promotion of Environment-Friendly Automobiles, public institutions are required to procure electric or hydrogen-powered vehicles for their fleets unless specific extenuating circumstances apply. Out of 33 institutions overseen by the Ministry, 27 are bound by these purchasing rules. mt.co.kr reported that these 27 entities acquired a total of 1,787 vehicles through purchase or lease over the course of last year. Of that total, exactly 888 vehicles—or 49.7%—qualified as zero-emission models. The remaining 503 vehicles, making up 50.3% of the acquisitions, were non-zero-emission vehicles.
Specific agencies lagged significantly behind compliance targets. The Korea Water Resources Corporation brought in 411 vehicles last year, with 307 registered as non-zero-emission units. Between January 2023 and September 2025, the same corporation acquired 34 operational vehicles without adding a single electric or hydrogen model to its fleet. Similarly, KDN and other affiliated bodies recorded high ratios of conventional combustion or hybrid purchases. Hawnand KPS reported that 80 out of its 95 newly acquired vehicles last year—representing 84.2%—were non-zero-emission models. Korea Hydro & Nuclear Power recorded 113 non-compliant vehicles out of 165 total acquisitions (68.5%), while Korea Electric Power Corporation registered 172 non-zero-emission vehicles out of 311 purchases (55.3%).
| Public Institution | Total Vehicles Acquired | Non-Zero-Emission Vehicles | Non-Compliance Share |
|---|---|---|---|
| Korea Water Resources Corporation | 411 | 307 | non-compliant |
| Korea Hydro & Nuclear Power | 165 | 113 | 68.5% |
| Korea Electric Power Corporation | 311 | 172 | 55.3% |
| Hawnand KPS | 95 | 80 | 84.2% |
Budget Cuts and Regulatory Penalties Under Scrutiny
The disclosures arrive as the government scales back financial support for hydrogen vehicle adoption. The Ministry’s budget for hydrogen vehicle distribution dropped from 6386억원 in 2025 to 5762억원 in 2026, with the 2027 draft budget projecting a further reduction to 4457억원—a 23% drop compared to the previous year. While government officials attribute these reductions to softening public demand, lawmakers argue that the state should first enforce compliance among its own agencies before pulling back financial commitments.
Representative Lee criticized the Ministry for trimming budgets while state-backed organizations fail to lead by example. He noted that national agencies show little active initiative, yet the Ministry justifies budget cuts by claiming a lack of market demand. He emphasized the need to investigate why these public bodies bypass eco-friendly options and urged the administration to foster leadership in its carbon neutrality policies.
Lawmakers also pointed out structural weaknesses in enforcement. Under current regulations, violating the mandatory purchase quota for zero-emission vehicles carries a maximum fine of just 3 million won. Representative Lee indicated plans to introduce legislative amendments to strengthen penalties and compel public institutions to meet their environmental obligations.
