South Korea Boosts Automotive Industry Support with $1.4 Billion Bailout
9 April 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/04/09/south-korea-automotive-industry-bailout/
The automotive industry is a cornerstone of South Korea's economy, but recent US tariff barriers have significantly impacted the sector and necessitate government intervention. On September 9th, South Korea鈥檚 Ministry of Trade, Industry and Energy announced an additional investment of 2 trillion won (approximately $1.35 billion) to support domestic automakers in navigating these challenges.
According to a report from Yonhap News Agency on September 9th, policy loans for domestic automakers will be increased from 13 trillion won to 15 trillion won as part of measures addressing the US government-imposed import car duties of 25%. This increase aims to provide greater financial support and help companies mitigate the impact of these tariffs.
Official statistics reveal that automobiles are South Korea鈥檚 largest export item to America, with exports reaching $34.7 billion in 2024鈥攏early half of its total automotive exports. In addition, auto parts exported to the US totaled an additional $8.2 billion during this period.
Recently, former President Trump imposed a 25% tariff on non-US produced imported cars and critical components; only car parts meeting origin rules under the United States鈥揗exico鈥揅anada Agreement (USMCA) were temporarily exempted from these tariffs. These vehicle duties took effect on April 2nd, while tariffs on automotive parts are scheduled to be implemented before May 2nd.
(Image source: Unsplash)
According to a report from Yonhap News Agency on September 9th, policy loans for domestic automakers will be increased from 13 trillion won to 15 trillion won as part of measures addressing the US government-imposed import car duties of 25%. This increase aims to provide greater financial support and help companies mitigate the impact of these tariffs.
Official statistics reveal that automobiles are South Korea鈥檚 largest export item to America, with exports reaching $34.7 billion in 2024鈥攏early half of its total automotive exports. In addition, auto parts exported to the US totaled an additional $8.2 billion during this period.
Recently, former President Trump imposed a 25% tariff on non-US produced imported cars and critical components; only car parts meeting origin rules under the United States鈥揗exico鈥揅anada Agreement (USMCA) were temporarily exempted from these tariffs. These vehicle duties took effect on April 2nd, while tariffs on automotive parts are scheduled to be implemented before May 2nd.
(Image source: Unsplash)