Automotive Industry Requests Policy Fund Support
Amidst the announcement by U.S. President Donald Trump regarding imposing tariffs on South Korea’s major export product, automobiles, government and industry officials have come together to devise a response strategy.
On the 7th, the Ministry of Trade, Industry and Energy convened a “Public-Private Task Force Meeting for Cooperation with the U.S.” at the Coal Center in Jongno-gu, Seoul. The meeting aimed to gather industry opinions on recent issues such as U.S. tariffs and discuss response measures.
The meeting was chaired by Park Dong-il, Director of Manufacturing Industry Policy at the Ministry of Trade, and attended by officials from the Korea Mobility Industry Association, Korea Automobile Manufacturers Association, Hyundai Motor Company, GM Korea, Korea Institute for Industrial Economics & Trade, Korea Automobile Research Institute, and Korea Trade-Investment Promotion Agency (KOTRA), among others.
Participants expressed concerns that the imposition of tariffs on automobiles and the intensification of competition with rival countries could disrupt South Korea’s automobile exports and potentially shock the domestic parts industry.
Furthermore, the attendees highlighted the significant contribution of investments by the Korean automotive industry to the U.S. economy and stressed the importance of a public-private cooperative response.
Industry officials at the meeting requested the government to develop countermeasures, including export diversification, support for the parts industry ecosystem, and policy fund support for liquidity.
The Ministry of Trade, Industry and Energy stated, “We anticipate increased external uncertainties for the time being,” adding that they will closely review industry proposals with relevant departments and swiftly prepare response measures by next month to minimize the impact on the Korean automotive industry.