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According to Yonhap News,

The South Korean government and major carmakers will extend combined support worth more than 14.3 trillion won (US$10.9 billion) to the auto parts industry for technology development and securing necessary liquidity in the latest move to boost exports and ensure stable supply chains in the broader industry, the industry ministry said Tuesday.

During a roundtable meeting with private auto and auto parts companies, the government announced a set of supportive measures for the sector, as the country has enjoyed solid growth in exports of vehicles and auto parts and the global demand for South Korean products is forecast to rise further, according to the Ministry of Trade, Industry and Energy.

Under the plan, the ministry and carmakers will provide auto parts companies with over 14.3 trillion won of funds to help support their investment and secure necessary liquidity through policy financing and joint development projects.

Hyundai Motor Co., Kia Corp and several other carmakers in South Korea signed a memorandum of understanding on the day that calls for enhancing cooperation with their part manufacturers.

The government also vowed to push for making a special law for backing corporate development of advanced technologies regarding the future car field and promoting the industry ecosystem.

It seeks to nurture more than 30,000 future car experts in cooperation with the private sector and major colleges.

The supportive measures are expected to help grow the country's production of electric vehicles about fivefold by 2023 and lead to innovation in other next-generation industries, such as system semiconductors, software, displays and bio, according to the industry.

"We are expected to see auto and auto parts exports this year surpass $80 billion for the first time ever. The government will continue efforts with the private entities to maintain the momentum and to better prepare for the future mobility era," Lee said.

During the first four months of this year, exports of vehicles and auto parts combined reached an all-time high of $3.09 billion.

graceoh@yna.co.kr

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Source: Yonhap News (May 23, 2023)