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South Korea has emerged as a major force in the global battery industry, ranking second worldwide in 2024 with roughly a fifth of total production. Its position places it well behind China, which dominates global output, but comfortably ahead of Japan. This standing reflects Korea’s strong manufacturing capabilities and deep integration with the global EV supply chain, particularly among automotive parts suppliers serving premium EV segments.

However, competitive pressures are intensifying as Chinese battery manufacturers rapidly expand their presence in the EU. Backed by large-scale production, state support, and cost-efficient lithium iron phosphate (LFP) technology, Chinese firms are undercutting rivals on price. By contrast, Korean producers have focused on higher-cost nickel-based batteries designed for performance-oriented and luxury vehicles.

Regulatory developments in Europe add another layer of complexity. The EU Battery Passport, which emphasizes lifecycle transparency and sustainability, poses challenges for Korean manufacturers whose carbon tracking systems and certification frameworks are still catching up. Gaps in recycling, reuse, and documentation standards could place additional strain on Korea’s battery sector.

(Also read: Inside South Korea’s Race to Lead AI)

Lessons learned

Two years after a high-profile electric vehicle (EV) fire rattled public confidence, South Korea’s push to tighten EV battery safety rules is reshaping how the automotive market operates in the country. In 2024, the government fast-tracked a national battery certification program and moved to force unprecedented transparency in a sector where battery sourcing is typically treated as a trade secret.

The policy shift followed a major blaze at an apartment complex in Incheon, where an electric sedan caught fire in an underground car park, damaging scores of vehicles and prompting the evacuation of hundreds of residents. The fire, which took hours to contain and raised fears of reignition, became a catalyst for broader scrutiny of EV safety standards and emergency preparedness.

Under the new framework, EV sellers in South Korea are required to disclose the manufacturers and technologies behind the batteries used in their cars. Authorities also accelerated the rollout of a battery certification system, bringing testing forward by several months to address mounting public concern. The measures marked a rare intervention in global industrial manufacturing that has long guarded battery supply chains closely.

Beyond disclosure, regulators expanded product validation and thermal cycling tests for batteries while pushing for higher insurance coverage from automakers and charging operators. Fire safety rules were also revised, including requirements for upgraded sprinkler systems in underground parking facilities equipped with EV chargers and wider deployment of charging technology designed to prevent overcharging.

While data suggests EVs are no more prone to fires than conventional cars, experts note that battery fires behave differently, often burning longer and posing greater challenges for firefighters. In response, South Korea has invested in specialized firefighting equipment and urged manufacturers to retrofit older models with updated battery management systems, signaling a more cautious and regulated phase for the country’s EV market.

(Also read: Top 7 EV Battery Trends Through 2030)

South Korea tightens EV battery management

South Korea is recalibrating its approach to EV batteries, sharpening oversight as it balances manufacturing solutions and product development with growing public and regulatory expectations on safety and transparency.

• EV battery safety, oversight, and reuse

Major political parties have put forward legislative proposals to strengthen oversight of EV batteries once they are removed from cars. The measures would introduce mandatory product testing to assess battery performance and determine whether units are suitable for remanufacture, secondary use, or recycling. The initiatives also outline new definitions and standards, assigning regulatory roles to transport authorities and clarifying responsibility for evaluations depending on how batteries are dismantled.

• EU battery passport

The European Union is tightening oversight of batteries through the EU Battery Passport, a mandatory digital record under Regulation (EU) 2023/1542. Covering EV, industrial, and light transport batteries, the system will document a product life profile spanning production, use, and end-of-life handling. Set to take effect in February 2027, the measure is expected to reshape compliance requirements for manufacturers and importers supplying batteries to the EU market.

• Battery handling & monitoring across the supply chain

At the same time, lawmakers are advancing cross-industry legislation to strengthen oversight of used batteries, reflecting a broader policy shift. Proposals from both major parties focus on regulating reuse, recycling, and trade, supported by new committees, registration requirements, and certification systems. The measures also combine stricter safety and performance checks with incentives aimed at encouraging investment and market development, underscoring a more coordinated, analysis-driven approach to battery lifecycle governance.

South Korean standards and legislation

South Korea applies a comprehensive set of laws, technical standards, and regulatory requirements to battery electric vehicles (BEVs), which are regulated as electrical and electronic products. These rules are designed to safeguard public safety, limit environmental impact, and protect consumer interests across the vehicle lifecycle.

• Automobile Management Act

The country’s vehicle safety law now mandates state-led certification of EV batteries, requiring rigorous testing before market entry and enabling follow-up inspections to verify continued compliance after approval.

• Korean Motor Vehicle Safety Standards

National vehicle safety standards establish mandatory requirements for all motor vehicles, including BEVs, setting benchmarks for electrical systems, high-voltage protection, and crash performance as a condition for approval and registration.

• Koran Certification Mark (KC)

Mandatory KC certification ensures electrical and electronic products meet safety and quality standards. BEV components, including batteries, charging interfaces, and onboard electronics, must comply with safety and electromagnetic compatibility (EMC) requirements for hazard prevention and legal market access.

• Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles

Environmental regulations restrict hazardous substances in BEV components, including heavy metals and flame retardants, and require manufacturers to manage recycling and collection of end-of-life batteries and electronics, supporting both environmental protection and resource recovery.

• Korean Industrial Standards

National technical standards, overseen by the Korean Agency for Technology and Standards

(KATS) under the Industrial Standardization Act, set requirements for secondary lithium-ion cells and battery systems, including performance and safety tests, providing the foundation for product testing and KC certification of BEVs.

• EMC & radio regulations

EMC standards set technical requirements to ensure BEV electronics neither cause nor suffer harmful interference. Charging systems and onboard electronics must pass Korean EMC tests, often aligned with International Electrotechnical Commission (IEC) standards, and comply with radio spectrum rules to prevent disruption of other electronic devices.

Bolstering its battery industry

South Korea’s battery and automotive sectors are at a pivotal moment, shaped by growing global demand, rising competition, and evolving regulatory expectations. Lawmakers are focusing on measures that strengthen the domestic battery ecosystem while addressing emerging challenges.

These initiatives reflect a coordinated effort to boost eco-vehicle adoption, stabilize supply chains, and maintain South Korea’s technological edge. As the battery industry accelerates its innovation and sustainability efforts, the country is positioning itself to remain competitive in Asia, Europe, and beyond, countering lower-cost competitors while fostering a safer, more efficient, and environmentally responsible EV market.

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