Assemblyman Heo Jongsik: "Establishing Systems to Promote Growth of Used Car Export Industry"
The number of companies located in the used car export complex in the old Songdo Amusement Park area of Incheon has been identified to be close to 1,600.
According to data received from the Korea Customs Service by Heo Jong-sik, a member of the Democratic Party of Korea representing Dong-gu Michuhol-gap, Incheon, there were 1,596 companies (as of last year) operating in the used car export complex in the old Songdo Amusement Park area of Yeonsu-gu, Incheon.
These companies exported approximately 238,000 used cars overseas last year, with export revenue reaching USD 1.7 billion (KRW 2.23 trillion). This accounts for more than 40% of the export volume of Incheon Port, the largest used car export port nationwide.
Used car export complex established in the former Songdo Amusement Park area, Yeonsu-gu, Incheon [Image source=Yonhap News]
The revitalization of used car exports leads to value creation in areas such as maintenance, tuning, parts supply, shoring (the process of securing cars in containers), and finance, as well as the future establishment of certification systems.
Accordingly, the issue of relocating the Yeonsu-gu used car export complex, which has been stigmatized as a mere storage yard, must be addressed. After the lifting of development activity permit restrictions in the first half of next year, companies may move to other regions or scatter throughout Incheon.
Previously, the Incheon Port Authority, which had considered the Cheongna landfill site in Seo-gu as a used car export complex, changed the location to the South Port and is promoting the creation of an eco-friendly and cutting-edge used car export complex called 'Smart Auto Valley.' For this project to succeed, it is pointed out that it is necessary to understand the status of companies while also preparing various support measures to overcome the small scale of these businesses.
The Ministry of Trade, Industry and Energy has reported that the number of companies in the Yeonsu-gu used car export complex collected from the Korea Used Car Export Association is 760. Considering that the Korea Customs Service export data shows 1,596 companies located in Yeonsu-gu last year, it is estimated that there are a significant number of businesses not affiliated with the association.
Rep. Heo said, "The government's only support measure for used car exports has been extending the export fulfillment period from 9 months to 12 months," adding, "We plan to establish systems and policies to help the used car export industry in Incheon grow through consultations with government departments such as the Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency."
He continued, "The Incheon Port Authority and Incheon City must also do their best to create conditions for the smooth progress of the used car export complex."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
