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S. Korea to foster parts suppliers for next-generation cars

11:05 June 10, 2021

SEOUL, June 10 (Yonhap) -- South Korea's top economic policymaker said Thursday the government plans to provide support to help around 1,000 auto parts makers transform into key suppliers of next-generation automobiles by 2030.

Finance Minister Hong Nam-ki said the country plans to create a 500-billion won (US$448 million) fund to support research and development and facility investment in the next-generation vehicle sector.

"It is very necessary to take the lead in the next-generation vehicle and related parts markets," Hong said at a government meeting on new industries.

Korean automakers are accelerating the development and production of next-generation automobiles, including autonomous and hydrogen-fueled vehicles.

But local auto parts makers have been struggling to cope with the changing trend due to lack of technology and manpower.

Hong also said the government will push for a preliminary feasibility study over its key projects to foster the chipmaking industry.

In May, the country unveiled a plan to provide tax incentives and subsidies to chipmakers to encourage them to invest a combined 510 trillion won by 2030.

The move is aimed at helping the country become a global powerhouse in both memory and non-memory chips.

South Korea is a powerhouse of memory chips, led by Samsung Electronics Co., the world's largest memory chip maker, and its smaller rival SK hynix Inc. But they have relatively lagged in developing non-memory chips, including system semiconductors.

S. Korea to foster parts suppliers for next-generation cars - 1

sooyeon@yna.co.kr
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