Kia to drop prices on selected EV models in Korea as foreign carmakers' discounts raise competition

Kia said Thursday it will lower prices on multiple EV models in Korea, as Tesla and other foreign automakers’ discounting sharpens competition for price-sensitive buyers.

Shown from left are the Kia EV9, EV6, EV3, EV4 and EV5. The company will expand benefits across the entire ownership cycle — from purchase and use to replacement — for both existing electric vehicle owners and customers considering switching to EVs, Kia said on Jan. 22, 2026. [HYUNDAI MOTOR GROUP]

Kia said Thursday it will lower prices on multiple EV models in Korea, as Tesla and other foreign automakers’ discounting sharpens competition for price-sensitive buyers.

The Hyundai Motor affiliate said it will cut the price of its compact electric SUV, the EV5 Long Range, by 2.8 million won ($1,900) and lower prices for the EV6 by 3 million won.

Following the cuts, the EV5 Long Range will start at 45.75 million won for the entry-level Air trim. After applying central and local government subsidies and incentives for switching to EVs, the effective purchase price in Seoul is expected to fall to about 37.28 million won.

Prices for the EV6 will start at 43.6 million won for the standard model and 47.6 million won for the long range version. With subsidies applied, the effective prices are expected to drop to about 35.79 million won and 38.89 million won, respectively.

Kia also highlighted the newly launched base version of the EV5. The EV5 Standard will start at 43.1 million won for the lowest-priced trim, with its effective purchase price expected to fall to the mid-34 million won range once subsidies are applied.

For the EV3 and EV4, Kia said it has strengthened installment financing incentives. Customers who purchase the models under an installment plan that uses equal principal and interest payments will be eligible for interest rates of 0.8 percent for 48 months and 1.1 percent for 60 months. The rates represent reductions of up to 3.3 percentage points from previous standard levels.

Beyond pricing measures, Kia said it will deploy more EV-specialized technicians at service centers nationwide and increase the number of locations able to carry out partial repairs on high-voltage batteries.

To support residual values for used EVs, the company will introduce a comprehensive quality grading system for used EVs and issue performance inspection certificates. Customers who sell a Kia EV and then purchase a new electric model will also receive discounts of up to 1 million won.

"The measures aim to reduce the burden of purchasing electric vehicles and improve accessibility [for customers] in order to expand the domestic EV market," a Kia spokesperson said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY NAM YOON-SEO [kim.juyeon2@joongang.co.kr]