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S. Korean Gov't to Support Development of Auto Parts Exported to Japan

According to Yonhap News,

(SEOUL=Yonhap News) The Ministry of Trade, Industry and Energy (MOTIE) announced on September 2 that it will support the development of higher value-added components technology related to auto parts export toward Japan, in order to pioneer exports of auto parts industry.

The Ministry plans to allocate KRW 4.5 billion to support SMEs develop technologies to export parts to Japan through the logistics system between Korea and Japan called a "milk run."

A milk run refers to a logistics system in which a Japanese car maker visits Korean auto parts companies to buy the components directly.

Thanks to the reduced logistics cost and time, exports through milk runs around Busan and Gyeongnam Province has increased to KRW 43.69 million in 2017 from KRW 27.9 million in 2015.

The Ministry will help small and medium-sized auto parts companies having difficulties in expanding exports due to the lack of technical capabilities so that they can actively use the logistics system.

It will also support the SMEs to diversify their products into higher value-added products such as eco-friendly lightweight materials, next generation vehicles and high-efficient electric parts.

The Ministry will announce the project on September 3 and hold a presentation session on September 4 at Busan Techno Park.

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Source Text

** This article was translated from Korean.

Source: Yonhap News (September 2, 2018)

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