“We will pursue efforts to enhance productivity for increased competitiveness and sustainable growth.”,
On the 31st, a finished vehicle is parked at the Kia Gwangmyeong Delivery Center in Gwangmyeong, Gyeonggi Province, as South Korea and the U.S. agreed to adjust the tariff rate on Korean automobiles to 15%. (Yonhap News)
The automotive industry expressed appreciation for concluding the tariff negotiations between South Korea and the United States at a 15% rate, stating, “We also need active support from the government.”
The Korea Automobile Manufacturers Association (KAMA) released a statement on the 31st saying, “We are relieved that the high 25% automobile tariff, which had been in effect since April, has been reduced to 15%, equating it with competitor countries like Japan and the European Union (EU). We are grateful for the government’s comprehensive trade diplomacy efforts that led to this outcome.”
KAMA further stated, “The U.S. market accounts for over 50% of our export volume of 2.78 million units, making it a major market. The conclusion of the tariff negotiation has created conditions for us to compete on equal footing with Japan and the EU, removing uncertainties in the automotive export environment, which is very positive.”
The statement continued, “The automotive industry, motivated by this government’s trade negotiation outcome, will work to enhance competitiveness and pursue continuous growth through technology development and productivity improvement efforts. We will also use this as an opportunity to expand our market share in the U.S., diversify export markets, and promote the transition to future vehicles.”
Finally, the statement emphasized, “In order for the tariff on automotive and parts items to be effectively applied in the export field as soon as possible, the government’s active attention is needed. We expect policy support from the government, such as the establishment of domestic production tax credits, to secure competitive production bases within the country.”