Auto Parts Industry: "Self-driven Innovation and Change Needed to Adapt to Changing Trade Environment"

Automotive Parts Industry Promotion Foundation
Hosts Development Strategy Seminar

The automotive parts industry collectively agreed on the need for self-help measures to respond to changes in the trade environment, such as the imposition of tariffs by the United States.

The Automotive Parts Industry Promotion Foundation held a spring automotive parts industry development strategy seminar on the 27th at EL Tower in Seoul, attended by over 300 key stakeholders and experts from the automotive industry.

Ahn Jeong-gu, Chairman of the Automotive Parts Industry Promotion Foundation, is delivering a greeting at the Spring Automotive Parts Industry Development Strategy Seminar held on the 27th at EL Tower in Seoul. (Provided by Automotive Parts Industry Promotion Foundation)

Chairman An Jeong-gu of the foundation stated, "To secure continuous competitiveness in the global market, it is important to have accurate insight into the flow of change and to establish proactive response strategies," adding, "We will conduct an in-depth analysis of the core issues facing the industry and share more practical solutions."

He also mentioned recent challenges faced by the parts industry, such as the slowdown in electric vehicle growth, strengthening protectionism, and domestic low birthrate and aging population, emphasizing, "The government is preparing diversification plans for overseas markets to help companies adapt to changes in the trade environment, so the parts industry also needs self-initiated innovation and change."

Chairman An noted, "We focused on major factors causing changes in the industrial landscape, including U.S. trade policies and changes in South Korea's demographic structure, and reviewed their impact on our automotive industry and response strategies together," urging, "To overcome difficulties and make a new leap forward, we ask parts companies to pool their experience and wisdom."

The first presenter at the seminar, Choi Yoon-seok, team leader of the Automotive Division at the Ministry of Trade, Industry and Energy, said, "To maintain the competitiveness of the automotive industry, we are actively reviewing measures such as operating a tariff issue response system, diversifying exports, and strengthening capabilities in eco-friendly vehicles and secondary batteries," and requested, "We are collecting multifaceted opinions through various related organizations to minimize the impact on the parts industry, so we ask for your active cooperation."

Professor Cho Young-tae of Seoul National University pointed out, "We need to pay attention to population stagnation rather than low birthrate, aging, or regional population decline," and stressed, "It is necessary to accurately judge market demand and timing of changes from a population perspective, as well as technological innovation and market diversification."

Park Sung-kyu, executive director at HMG Management Research Institute, emphasized, "The U.S.-centered world order maintained since World War II is changing with the emergence of the Trump administration's second term," and stated, "Because the outcome of the U.S.-China hegemonic competition will have a significant impact on the global economic order, it is necessary to establish meticulous response strategies considering each scenario."