South Korean Trade, Industry and Energy Ministry announced on May 23 that the government and local automakers will invest KRW14.3 trillion (US$10.9 billion) in the automotive component industry, helping EV production grow fivefold by 2030.
According to South Korea-based Yonhap and KBS, the ministry unveiled a series of measures to support the industry during a meeting with car makers and parts companies.
The agency and several automakers will offer financial support of more than KRW14.3 trillion to the automotive component industry. The goal is to support the companies' investment and secure necessary liquidity.
Domestic carmakers such as Hyundai Motor and Kia Corp signed a memorandum of understanding to deepen ties with their parts suppliers.
Yonhap reported that the South Korean government plans to push for a special law facilitating advanced technology development in future cars. In addition, the government will work with the industry and major colleges to nurture over 30,000 future car experts.
South Korea has enjoyed rising global demand for its vehicles and car components. According to the industry ministry, the country's car and component exports are expected to surpass US$80 billion in 2023 for the first time.
According to KBS, South Korea aims to expand domestic EV production fivefold by 2030 and increase automotive parts exports with the support of KRW14.3 trillion. It is targeting the US, the European Union, China and emerging markets like the Middle East and ASEAN countries.
Moreover, the ministry expects supportive measures for the parts industry to advance development in other sectors like system semiconductors, large-sized displays, carbon composites, bio-health and software.
On the other hand, South Korea and Indonesia launched an E-Mobility Cooperation Center in Indonesia last week. According to South Korea's industry ministry, the country will provide Indonesia with 65 electric four-wheelers, 90 electric two-wheelers, and 71 chargers. It will also establish an EV aftersales service center in Indonesia and help train maintenance, production and R&D personnel.
South Korea also proposed that the two countries sign an e-mobility cooperation MoU.
