Gyeongnam Province Holds 'Automotive Parts Companies Meeting' to Overcome COVID-19

Global Demand for Complete Vehicles Plummets, Necessitating Response to Changes in Demand and Supply in the Parts Industry

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] Gyeongnam Province announced on the 8th that it held the ‘Gyeongnam Auto Parts Companies Meeting’ to listen to the difficulties faced by the auto parts industry due to the sharp decline in demand for finished vehicles caused by the impact of the novel coronavirus infection (COVID-19) and to overcome the industrial crisis.

The meeting, chaired by Park Jong-won, Deputy Governor for Economy of Gyeongnam Province, was attended by a total of 16 people, including Lee Min-woo, Director of the Automobile and Aviation Division at the Ministry of Trade, Industry and Energy, Ahn Wan-gi, Director of Gyeongnam Technopark, Jeong Chan-hwang, Head of the Southeast Headquarters of the Korea Automotive Technology Institute, and eight CEOs of local auto parts companies.

The meeting explored support measures for the industry in response to COVID-19 and strategies to respond to industrial changes after the pandemic.

So far, the province has continuously promoted parts development and technical support projects for the transition to the future car industry, including ▲ development of core parts for future vehicles ▲ support projects for the electric autonomous vehicle parts industry ecosystem ▲ establishment of a foundation for chassis modularization strategic parts development.

At the meeting, local parts companies raised difficulties such as lack of work due to decreased automobile production, requesting support for liquidity to stabilize management and employment, technical support for future car parts development, and discovery of demand sources. The province plans to actively reflect the opinions of the parts industry and expand corporate support projects in consultation with central government departments.

Deputy Governor Park said, “Due to the impact of COVID-19, the global economic uncertainty and changes in demand and supply systems may destabilize the ecosystem foundation of the parts industry,” and added, “I hope companies will make good use of this ‘policy fund support program’ to focus on employment stability and investment in technology development, securing corporate competitiveness to lead the future car market.”