BYD's Sealion 7 sport utility vehicle on display. (Photo by Kyodo News via Getty Images)
SEOUL, (EPICSTORIAN) — A regulatory setback has delayed the delivery of BYD Korea’s Atto 3 electric SUV, preventing the vehicle from reaching customers as planned.
The updated subsidy requirements from the Ministry of Environment have left the preordered vehicles stranded at a port in Pyeongtaek, Gyeonggi Province, awaiting clearance.
The new rule mandates that electric vehicles include a battery state-of-charge (SoC) function to qualify for government subsidies.
BYD Korea pledged to implement the feature through a software update within the year, but no confirmation has been given on whether the adjustment meets subsidy criteria.
The Atto 3 currently lacks this feature, preventing it from qualifying for government incentives.
Interest in the Atto 3 surged following its January launch, securing over 1,000 preorders within a week. Vehicles are currently held at Pyeongtaek Port, awaiting clearance.
BYD Korea Unveils plan to install SoC
BYD Korea confirmed plans to install the required software update within a year but has yet to receive confirmation on whether this will satisfy subsidy conditions. “We are waiting for feedback from regulators and hope for a quick resolution,” a company representative said.
Competitive Pricing
Losing subsidy eligibility could push the Atto 3’s price above 30 million won ($20,500), eroding its cost advantage. Kia’s EV3, available for a slightly higher price, offers 501 kilometers per charge, outpacing the Atto 3’s 321 kilometers.
Consumer preferences in South Korea continue to favor local brands. “The Atto 3 is performing well globally, but local buyers lean toward domestic automakers,” an industry analyst said. “Price remains the key factor for competing with Hyundai and Kia.”
Regulatory Delays Complicate Market Entry
The Ministry of Trade, Industry, and Energy is still processing administrative approvals, delaying the eco-friendly vehicle list update.
If unresolved soon, the setback may further challenge BYD’s expansion plans as trade restrictions on Chinese EVs intensify in Europe and the U.S.
Market observers suggest that timing is critical for BYD to establish itself in South Korea.
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Meeting regulatory expectations quickly could determine whether the Atto 3 gains traction or struggles to compete in a market dominated by established players.
