[비즈한국] The Korea Economic Research Institute (KERI) has officially recommended that the government allow the separation of ownership between electric vehicles (EVs) and their batteries. KERI proposed this in its '100 Comprehensive Regulatory Improvement Tasks for 2026' submitted to the Office for Government Policy Coordination on May 6. The strategy aims to revitalize an EV market currently experiencing a 'chasm'—a temporary stagnation in demand—and to establish an ecosystem for 'BaaS (Battery as a Service),' which involves battery swapping and subscription models. However, there are significant counterarguments, including concerns over rising total costs and unclear accountability.
Currently, the South Korean EV market is stagnant due to high initial purchase costs and a lack of charging infrastructure. Under the current system, the expensive battery is treated as an integrated part of the vehicle, forcing consumers to pay for the entire battery value at the time of purchase. Typically, the battery accounts for more than 40% of an EV's price.
If the separation of battery ownership proposed by KERI is realized, consumers could purchase just the vehicle body and use the battery through a subscription model. For an EV with a list price of 50 million won, excluding the roughly 20 million won battery cost and applying subsidies, the actual purchase price could drop to the mid-to-high 10 million won range. However, concerns have been raised that while the initial purchase cost decreases, the accumulation of battery subscription fees could eventually lead to higher total costs. Leasing or financial companies that hold ownership of the batteries may incorporate interest and asset management costs into subscription fees when financing the battery purchase, which could increase the long-term financial burden on consumers.
A critical factor hindering the separation of battery ownership is the lack of a legal basis. Current automobile management laws define a vehicle as a single integrated asset, leaving no system to register ownership of a battery separately. In principle, a vehicle without a battery cannot be registered, and it is impossible to list a separate battery owner in the vehicle registration certificate.
To overcome these regulatory hurdles, KERI has urged the introduction of a 'dual registration system' that assigns a unique identification number to the battery separate from the Vehicle Identification Number (VIN) and recognizes the ownership of each independently. Once a unique ID number, including information on the battery cell manufacturer and primary raw materials, is listed separately on the vehicle registration, the battery becomes an 'independent asset' capable of being traded and valued, rather than a mere component. While the government has begun foundational work, such as amending the Automobile Management Act to mandate the entry of battery identification numbers, creating detailed enforcement decrees is essential for universal institutionalization.
The global BaaS market is growing rapidly, led by China. As of the end of 2024, NIO operated over 2,400 battery swapping stations in China and recorded more than 40 million cumulative swaps. The global BaaS market size is projected to grow by more than 20% annually, from approximately $1.63 billion (2.3 trillion won) in 2025 to $9.2 billion (13.3 trillion won) by 2034.
Separation of ownership is also directly linked to the revitalization of the 'used battery' market. When batteries are managed by professional operators, vast amounts of data—such as charging frequency and temperature history—can be systematically collected, serving as an indicator for assessing the battery's residual value. Degraded batteries can then be reused for energy storage systems (ESS) or become assets in the recycling stage where raw materials are extracted, facilitating integration into a circular resource economy.
To spread the BaaS model, challenges such as the lack of technical standardization and inadequate insurance systems must be addressed. Currently, each automaker designs battery packs with different sizes, voltages, and physical connection structures for the sake of vehicle performance and efficiency. This means battery swapping stations (BSS) can often only accommodate specific brands, likely leading to redundant infrastructure investment and inefficiency.
China is establishing national standards to encourage battery swapping regardless of the manufacturer. However, it is difficult for global manufacturers, who view technical differentiation as a core competitiveness, to reach an agreement. If dedicated swapping stations are installed for each manufacturer, the lack of universality, unlike current gas stations, could increase consumer inconvenience.
Ownership separation is directly tied to accountability in the event of an accident. If a vehicle fire occurs, massive amounts of time and technical analysis are required to clearly determine if the cause was a battery defect, a vehicle BMS control error, or user negligence. In particular, if the 'vehicle body' and 'battery' have different owners, legal disputes over liability for accident compensation could intensify. Currently, with few battery-specific insurance products, there is a risk that consumer protection in the event of an accident may be weak.
The situation becomes even more complex when a vehicle with separated battery ownership enters the used car market. In addition to paying the vehicle price, the buyer must either inherit the previous owner's battery subscription contract or enter into a new one. If subscription fees rise or the terms of transfer become difficult during this process, there is concern that the attractiveness of used EVs could decline.
Some also raise concerns that automakers could maintain battery ownership to monopolize backend profits throughout the vehicle's life cycle. It is also pointed out that government-level efforts, such as opening up battery data and creating a fair competitive environment, must be implemented in parallel to ensure that independent repair shops and small recycling businesses are not excluded from the market.