Urgent Need for Comprehensive Support
From Major Corporations to Partner Companies
With the United States moving to impose high tariffs on auto parts, an emergency has been declared in the Gyeongbuk auto parts industry. On August 13, National Assembly Planning and Finance Committee Chairperson Im Ija (People Power Party, Sangju-Mungyeong, Gyeongbuk) and National Assembly member Jo Jiyeon (People Power Party, Gyeongsan, Gyeongbuk) visited the site to listen to industry concerns and discuss countermeasures.
Emergency in Gyeongbuk Auto Parts Industry Im Ja and Jo Jiyeon Discuss Tariff Response to the US "Comprehensive Support from Large Corporations to Partner Companies Is Urgently Needed"
The roundtable began at Ilji Tech Co., Ltd. in Jinryang-eup, Gyeongsan. The two lawmakers toured the body parts production line to check the current production status and export structure, then sat down with representatives from parts manufacturers in Gyeongsan, Yeongcheon, Gyeongju, and other areas at SL Co., Ltd.
Industry representatives expressed concern that market uncertainty has increased since the conclusion of the Korea-US tariff negotiations. They warned that the impact of high tariffs could spread beyond finished vehicle manufacturers to second- and third-tier partner companies.
Participating companies called for expanded financial and tax support, such as liquidity assistance and extensions on tax payment deadlines, to provide immediate relief. They also agreed that, in order to maintain competitiveness amid the reorganization of global supply chains, long-term strategies are needed for upgrading the parts industry and diversifying export markets.
Chairperson Im emphasized, "There is a high possibility that not only large corporations but also small partner companies will suffer serious damage," adding, "With the conviction that the answers lie in the field, I will reflect the opinions raised today in National Assembly and government policies."
Representative Jo also stated, "The auto parts industry is the backbone of our manufacturing sector," and pledged, "We will prepare tax incentives for domestic production and legal and institutional support measures to minimize damage from high US tariffs and secure an advantage in the global competitive environment."
The roundtable was attended by officials from related organizations, including the Ministry of Economy and Finance's One-Stop Export and Order Support Financial Assistance Team, Export-Import Bank of Korea, Korea Trade Insurance Corporation, Korea SMEs and Startups Agency, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and IBK Industrial Bank of Korea. Various support measures, including finance, insurance, and guarantees, were discussed.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
