"'Support Group for Parts Companies' Business Restructuring' Activated to Provide Comprehensive Support for Future Car Transition"
President Moon Jae-in is seen asking questions while riding the electric vehicle 'Twizy' after the National Vision for the Future Car Industry proclamation ceremony held last October at Hyundai Motor Company's Namyang Research Center in Hwaseong, Gyeonggi Province. Photo by Yonhap News.
[Asia Economy Reporter Moon Chaeseok] On the 12th, the Ministry of Trade, Industry and Energy and the Korea Automotive Research Institute announced the 'Automotive Parts Company Innovation Support Project' to strengthen the innovation capabilities of automotive parts companies and support their business transition to future vehicles.
The project is a follow-up measure to the 'Future Vehicle Industry Development Strategy' jointly announced by related ministries in October last year.
It supports commercialization consulting, prototype production, evaluation, and certification for parts companies transitioning to future vehicle businesses.
This year's support budget is 5 billion KRW. Approximately 70 automotive parts companies preparing for or pursuing business transition to future vehicles will receive support of up to 70 million KRW per company.
This year's project plans to provide support in two phases. The first announcement will be made from the 13th to the 27th, and the second announcement is scheduled for July.
Additionally, the Ministry of Trade, Industry and Energy has selected the Korea Automotive Research Institute as the support institution for automotive parts companies' transition to future vehicle businesses to provide comprehensive support.
The 'Parts Company Business Restructuring Support Group,' composed of technology, finance, and export support institutions, will be activated to comprehensively support technology, funding, and market development necessary for future vehicle transition.
Using the 'Corporate Vitality Act,' which expands the scope of application and support benefits such as tax and location for companies entering new industries like future vehicles from oversupplied sectors, the ministry plans to actively support the business restructuring of automotive parts companies.
Choi Namho, Director of Manufacturing Industry Policy at the Ministry of Trade, Industry and Energy, emphasized, "To overcome the crisis and achieve a leap forward in the automotive industry caused by the COVID-19 pandemic, it is necessary to proactively respond to the transition to future vehicles."
Director Choi stated, "We plan to create a future vehicle ecosystem by supporting technology development, workforce training, and regulatory improvements to promote the transition of automotive parts companies to future vehicles and secure their innovation capabilities."
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