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  • Competitive Automotive Parts Industry The World’s 5th Largest Automobile Production Base, Producing 4 Million Vehicles Annually Close
    Competitive Automotive Parts Industry The World’s 5th Largest Automobile Production Base, Producing 4 Million Vehicles Annually
    Korea is the 5th largest automobile producer in the world, capable of producing over 4 million automobiles annually. Half of the production in Korea is sold to the domestic market, and the other half is exported worldwide. In 2021, due to the shortage of automotive semiconductors, a total of 3.46 million units were produced, of which 2.05 million units (60%), were exported.
    Korea is rapidly recovering from the COVID-19 crisis, thanks to its stable social structure and infrastructure. It is supported by a strong domestic market of 1.8 million units a year, which is the 10th largest in the world.
    Korean parts manufacturers are growing into global companies in line with their production volume, and many well-known overseas companies are operating base factories in Korea. The list of the world's top 100 auto parts makers in 2021 (based on sales) showed that nine Korean parts makers were listed. The sales of these nine companies amounted to USD 55.2 billion, accounting for 7.4% of the top 100 parts makers' sales. One more company was added to the list, up from eight companies in 2020. Yura, a supplier of electronic modules and wiring systems, grew significantly during the period of the transition to electric vehicles, and reached 78th place in 2021.
    "Ranking of Korean Companies Among the Top 100 Auto Parts Makers in the World"
    (Unit : USD million)
    Please refer to the information below
    Ranking of Korean Companies Among the Top 100 Auto Parts Makers in the World Years(2010,2015,2019) Company name, Delivered amount
    2015 2020 2021
    Company name Delivered amount Company name Delivered amount Company name Delivered amount
    Hyundai Mobis(6th) $26,262 Hyundai Mobis(7th) $26,262 Hyundai Mobis(7th) $25,074
    Hyundai Wia(29th) $7,480 Hyundai Transys(36th) $7,374 Hyundai Wia(34th) $6,742
    Mando(45th) $5,560 Hyundai Wia(37th) $6,979 Mando(38th) $5,827
    Hyundai Powertech(50th) $4,554 Hanon Systems(42th) $6,137 Hyundai Dymos(39th) $5,824
    Hyundai Dymos(71th) $3,200 Mando(50th) $4,893 Mando(50th) $4,542
    Hyundai Kefico(88th) $1,898 SL(77th) $2,074
    SL(89th) $1,883 Yura(78th) $1,954
    Seoyon E-hwa(94th) $1,695 Seoyon E-hwa(85th) $1,662
    Hyundai Kefico(89th) $1,582
    Large view of images
    ※ Source : Automotive News
  • Automobile Industry Leading the Korean Economy Makes a Fast Transition to Future Cars Open
    Automobile Industry Leading the Korean Economy Makes a Rapid Transition to Future Cars
    The Korean automobile industry, along with the semiconductor industry, are Korea’s flagship manufacturing industries. The proportion of key indicators, such as production, employment, and exports, is over 10%.
    "Status of Korea’s Automobile Industry"
    Status of Korea’s Automobile Industry Number of Companies, Employment, Production Amount, Added Value, Exports, Trade Balance
    Number of Companies
    (units)
    Employment
    (1,000 persons)
    Production Amount
    (KRW billion)
    Added Value
    (KRW billion)
    Exports
    (USD million)
    Trade Balance
    (USD million)
    Finished cars 34 89,130 92,920 23,825 46,466 32,216
    Ratio 0.00% 3.00% 6.00% 4.30% 7.20%
    Auto parts 4,480 247,271 103,793 31,567 22,776 16,540
    Ratio 6.40% 8.40% 6.70% 5.70% 3.50%
    ※ Source: Statistics Korea, KITA
    ※ Note
    • Number of companies, employment, production, and added value as of 2019; exports and trade balance as of 2020
    • The ratio is the ratio out of the manufacturing industry, but the ratio of exports is the ratio out of total export.
    The automobile industry, which combines both the automobile and parts industries, accounts for 11.4% of Korea's total employment, 12.7% of total production, and 10.5% of total exports. This export-led industry recorded a trade balance of USD 48.7 billion dollars (KRW 57 trillion) in 2021.
    (Unit : 000 units)
    Automobile Industry Trend Category, Years
    (Unit : USD 100 million)
    Automobile Industry Trend Category, Years
    ※ Source: Statistics Korea, Korea International Trade Association
    ※ Footnote: *Production and domestic demand: Completed cars
    ※ * Amount of exports and imports: MTI741, MTI742 add up
    In line with the global trend, the Korean automobile industry is also rapidly transforming toward electrification.
    The total ratio of eco-friendly vehicles represented by hybrids (HEV), plug-in hybrids (PHEV), electric vehicles (EV), and hydrogen vehicles (FCEV) rose from 9.4% in 2019 to 12.7% in 2020 and 18.6% in 2021, in terms of production.
    The number of units sold in Korea recorded 7.9% of all vehicles in 2019, 11.9% in 2020, and exceeded 20% in 2021. Pure eco-friendly vehicles, such as EVs and FCEVs, exceeded 2% in 2019 and 6% in 2021 in the domestic market. The prevailing prediction is that the transition to eco-friendly vehicles will accelerate in the future.
    Hyundai Motor Group is the only company in the world that mass-produces hydrogen vehicles for both passenger and commercial use. That is why many foreign companies with hydrogen technologies are interested in Korea's hydrogen industry.
    "Production and Sales of Electric Vehicles in Korea"
    Please refer to the information below Large view of images
    (Unit : units)
    Production and Sales of Electric Vehicles in Korea Category, Years
    2019 2020 2021
    Production Domestic Demand Exports Production Domestic Demand Exports Production Domestic Demand Exports
    Electric vehicles 103,437 32,052 76,099 152,174 44,617 119,718 230,177 96,666 154,014
    Plug-in hybrid electric vehicles 39,831 5,255 31,435 30,523 10,702 26,065 52,600 19,701 37,957
    Fuel cell electric vehicles 6,020 4,194 788 6,594 5,789 1,041 9,639 8,502 1,121
    Hybrid electric vehicles 220,699 98,810 150,615 254,725 163,984 124,503 352,271 222,869 211,807
    ※ Source: Korea Automobile Manufacturers Association
  • Continuous Investment by Global Auto Parts Companies Open
    Continuous Investment by Global Auto Parts Companies
    Most of the world's top 100 auto parts makers have entered Korea, mainly supplying core high-tech parts. In the past two years, continuous investment has been made in the production of parts for future vehicles, such as EV motors/batteries, hydrogen fuel cells/tanks, and autonomous driving sensors.
    The Korean government is giving full support to foster the eco-friendly future car industry, and Korea is emerging as a production base for future cars.
    Global Automotive Parts Companies Go to Korea :Canada - MAGNA/US - BorgWarner, JOYSON, LEAR, ADIENT, Cooper Standard/Sweden - Autoliv/France - Faurecia, Valeo, OP/Germany - MAHLE, Continental, SCHAEFFLER, ebasto, BOSCH, ZF/Japan - Calsonic Kansel,DENSO Large view of images
  • Strengthening of Government Policies To Lead the Global Future Car Market Open
    Strengthening of Government Policies To Lead the Global Future Car Market
    The Korean government has developed various strategies to make a transition to future vehicles, such as electric vehicles, hydrogen vehicles, and autonomous vehicles. Measures include expanding subsidies for EV purchases, support for building electric/hydrogen charging facilities, and support for parts companies targeting future vehicles. In February 2021, Korea implemented the world's first hydrogen vehicle law, taking the lead in the development of the hydrogen vehicle industry.
    Please refer to the information below
    Government technology/R&D support for electric power vehicle-related parts
    (EV) Driving distance improvement (400km → 600km), charging time reduction (200kW → 400kW), and advancement of core component technology (USD 450 million worth of preliminary feasibility study in progress))
    Core parts : Battery cells, battery modules, battery management systems (BMS: Battery Management System), vehicle-mounted charging modules (OBC: On Board Charger)
    IT-based plans to localize autonomous vehicles and related parts
    Promotion of convergence technology development (convergence sensing, such as camera, radar, and LiDAR, and AI-based driving control technology) and support for mobility service demonstration (USD 900 million worth of preliminary feasibility study in progress)
    Core parts : Front and side image sensor modules, 77/79 GHz dual-band radar, low-cost LiDAR sensors, accident data recorders (ADR), V2X telecommunication technology, digital maps, entry-level complex positioning, driver/vehicle interfaces (HVI module), integrated DCU (Domain Control Unit)
    Large view of images
  • Transition to Future Vehicles Through Special Strategies by Region Open
    Transition to Future Vehicles Through Special Strategies by Region
    The Korean automobile industry is scattered throughout the country. The industry is divided into a cluster in the west coast including the metropolitan area, a cluster in the southeast area centered on Ulsan, and a cluster in the Honam area, including Gwangju and Gunsan.
    Kia Motors and GM Korea have finished car factories located in the metropolitan area, and there are also research centers and factories, including Hyundai-Kia's Namyang Research Center, as well as a test city for autonomous vehicles (K-City). In the Chungcheong region, 124 primary suppliers are concentrated in Cheonan, Asan, and Dangjin. In the southeast region, major domestic automakers, such as Hyundai Motor Company, Renault-Samsung Motors, and GM Korea, and 337 primary parts makers form a cluster.
    " Distribution of Domestic Finished Vehicle Factories and Primary Parts Makers "
    Please refer to the information below
    Distribution of Domestic Finished Vehicle Factories and Primary Parts Makers
    • Seoul:Parts companies 37
    • Gangwon:Parts companies 4
    • Incheon:Parts companies 51
      • Incheon:GM Koreas 440,000 units
    • Gyeonggi:Parts companies 167
      • Sohari:Kia 320,000 units
      • Hwaseong:Kia 563,000 units, EV6(EV)
      • Pyeongtaek:Ssangyong 153,000 units
    • Chungnam:Parts companies 83
    • Daejeon:Parts companies 8
      • Asan:Hyundai 300,000 units
      • Seosan:Donghee Auto (Kia) 150,000 units
    • Chungbuk:Parts companies 21
    • Jeonbuk:Parts companies 69
      • Gunsan:Tata Daewoo 20,000 units
      • Jeonju:Hyundai 103,000 units Hydrogen commercial vehicle
    • Gyeongbuk:Parts companies 67
    • Daegu:Parts companies 44
    • Jeonnam:Parts companies 7
    • Gwangju:Parts companies 27
      • Gwangju:Kia 600,000 units
      • Gwangju:Gwangju Global Motors (Jobs for Gwangju : 70,000 units)
    • Ulsan:Parts companies 24
      • Ulsan:Daewoo Bus 6,000 units
      • Ulsan:Hyundai 141,000 units, Ioniq 5 (EV), Nexo (hydrogen vehicle)
    • Busan:Parts companies 39
      • Busan:Renault-Samsung 300,000 units
    • Gyeongnam:Parts companies 102
      • Changwon: GM Koreas : 210,000 units
    Large view of images
    ※ Source: KAMA, KAICA
    ※ Note: 2020 finished vehicle production capacity, based on primary parts makers
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