Kang Kyung-sung, First Vice Minister of the Ministry of Trade, Industry and Energy, is presiding over the 1st Strategic Planning and Investment Council held at the Government Complex Sejong on the 11th of last month. [Image source=Yonhap News]
The Ministry of Trade, Industry and Energy announced that it is pursuing an export target of $98.4 billion for the entire automotive industry this year, including $75 billion for automobiles and $23.4 billion for automotive parts, by pioneering new markets for automotive parts.
Kang Kyung-sung, the 1st Vice Minister of the Ministry of Trade, Industry and Energy, visited the Seosan plant of Konek Co., Ltd., which produces future car parts such as battery and motor cases and exports them to Tesla, on the 16th, expressing gratitude to the officials working hard to increase exports. Battery and motor cases are among the core components of electric vehicles that require highly reliable mechanical properties.
Konek Co., Ltd., which used to manufacture internal combustion engine parts, faced a deteriorating business environment in 2018 but transformed into a future car parts company with support from the ministry’s business restructuring and technology development programs, growing into a company that exports 70% of its sales overseas.
Exports of automotive parts accounted for about 25% of South Korea’s automotive industry exports of $93.8 billion in 2023. Expanding exports of automotive parts is considered a very important task in terms of strengthening the international competitiveness of our parts companies. The ministry set this year’s automotive industry export target at $98.4 billion, a 5% increase from the previous year. Among this, the export target for automotive parts is $23.4 billion, a 2% increase from the previous year.
The ministry is preparing a support system to expand the automotive parts industry into new markets for future cars. It is preparing subordinate laws and regulations regarding the scope and procedures of support projects for future car parts companies so that the Future Car Parts Industry Act, enacted in January this year, can be enforced in July. This year, it is supporting the development of next-generation high-performance and high-efficiency future car parts technology with 442.5 billion KRW.
Vice Minister Kang Kyung-sung said, "To achieve the highest-ever export performance in the automotive industry this year, it is necessary to expand exports not only of complete vehicles but also of automotive parts," adding, "The government will do its utmost to support internal combustion engine parts companies to swiftly and flexibly transition into future car parts companies so that our companies can take the lead in the future car parts market."
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