South Korea to Provide 20 Trillion Won in Support to Auto-Parts Makers

SEOUL, May 14 (Yonhap) -- The industry ministry said Thursday that nearly 20 trillion won (US$13.4 billion) in financial support will be provided to auto-parts makers this year to help their financing for research and development (R&D), as well as business shifts for future mobility. According to the ministry, some 9.7 trillion won will be in store for their business overhaul this year, as well as 8.3 trillion won for future mobility and autonomous driving. In addition, a total of 15 trillion won will be provided for the mobility sector over the next five years, funded by the state-private-funded National Growth Fund, according to the ministry. Last year, a total of 21,000 auto parts makers generated a combined 208 trillion won in sales. They invested a total of 7.1 trillion won last year for facility upgrades, expansions and overhauls. Out of the surveyed firms, just 578 companies were fully dedicated to future mobility, and some 6.1 percent were planning a business shift, or business diversification, according to the ministry. Smaller auto parts manufacturing firms have been struggling with shocks from trade uncertainties sparked by U.S. President Donald Trump's administration's sweeping tariffs on auto, auto parts, steel and other imports. Recently, Middle East tensions have emerged as another external uncertainty.