Automotive Industry Voices Concerns Over Export Disruptions
Requests Policy Fund Support from Government
The government discussed response measures to the U.S. automobile tariffs with the automotive industry. The government plans to establish response measures by next month.
On the 7th, the Ministry of Trade, Industry and Energy held a meeting of the Public-Private Cooperation Task Force (TF) on U.S. cooperation in the automotive sector at the Coal Hall, gathering industry opinions and discussing response measures regarding recent issues such as the U.S. tariff imposition.
Export vehicles are waiting to be loaded at Pyeongtaek Port, Gyeonggi Province. 2025.2.13. Photo by Kang Jin-hyeong
The meeting was chaired by the Director of Manufacturing Industry Policy at the Ministry of Trade, Industry and Energy and was held together with industry and institutions including the Korea Mobility Industry Association, Korea Automobile Industry Cooperative, Hyundai Motor Company, Korea GM, the Korea Institute for Industrial Economics and Trade, the Korea Automotive Technology Institute, and KOTRA.
The Public-Private Cooperation TF on U.S. cooperation was formed following the automotive industry impact assessment meeting chaired by the Minister of Trade, Industry and Energy in November last year and is operated on an ongoing basis.
According to the Ministry, attendees evaluated that the imposition of U.S. automobile tariffs and intensified competition with rival countries could disrupt South Korea's automobile exports and potentially cause a ripple effect on the domestic parts industry. They also emphasized that the investment of the Korean automotive industry significantly contributes to the U.S. economy and mentioned that, as the supply chain connectivity between the two countries becomes closer, cooperation between the public and private sectors is crucial for response. In particular, they proposed response measures including export diversification, support for the parts industry ecosystem, and policy fund support such as liquidity assistance.
An official from the Ministry stated, "External uncertainties are expected to intensify for the time being," adding, "We will carefully review industry opinions and recommendations with relevant ministries to minimize the impact on the Korean automotive industry and promptly establish response measures by next month."
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