South Korean Auto Industry Calls for Enhanced Domestic Production Amid Global Trade Shifts
South Korea auto industry urges stronger domestic production
Image: Upi
South Korean auto industry leaders are advocating for increased domestic manufacturing capabilities in response to rising global protectionism. The call comes during the 47th Automotive and Mobility Industry Development Forum in Seoul, where experts highlighted the need for competitive strategies against tariffs and investment restrictions from major markets like the U.S. and EU.
- 01Chung Dae-jin, chairman of the Korea Automotive Industry Alliance, emphasized the need for stronger domestic manufacturing as global trade dynamics shift.
- 02High U.S. tariffs indicate a departure from the previous free trade paradigm, according to Park Sung-kyu from Hyundai Motor Group.
- 03China dominates the electric vehicle market, producing over 70% of global output, raising concerns for South Korea's market position.
- 04Experts suggest implementing trade measures and tax incentives to bolster South Korea's domestic electric vehicle production.
- 05The country must enhance its battery and parts ecosystem to support future mobility and electric vehicle manufacturing.
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During the 47th Automotive and Mobility Industry Development Forum in Seoul, South Korean auto industry officials urged for enhanced domestic manufacturing capabilities in light of increasing global protectionism. Chung Dae-jin, chairman of the Korea Automotive Industry Alliance, pointed out that major markets like the United States and the European Union are imposing tariffs and implementing policies that favor their domestic industries. He noted that while South Korea is investing in future vehicles, it is lagging in adapting to rapid changes in the global trade landscape. Park Sung-kyu, an executive director at Hyundai Motor Group, highlighted that high tariffs reflect a shift away from free trade, emphasizing that manufacturing competitiveness is crucial for national security. Experts also warned about China's dominance in electric vehicle production and suggested that South Korea should consider trade measures, investment security reviews, and tax incentives to strengthen its domestic production base. They stressed the importance of reinforcing the battery and parts ecosystem to support future mobility initiatives.
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Strengthening domestic production could enhance South Korea's competitiveness in the global auto market and safeguard jobs.
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