South Korea’s auto industry welcomed the National Assembly’s passage on Thursday of a special law on strategic investment management with the United States, a follow-up step to tariff negotiations.
The Korea Automobile & Mobility Association said in a statement Thursday that it “sincerely welcomes” the bill’s approval, thanking the Assembly for bipartisan cooperation and government officials for pursuing trade talks.
The association said the industry had been concerned that if U.S. export tariffs on Korean vehicles were raised again from 15% to 25%, it could weaken export competitiveness, reduce domestic production and shrink the broader auto industry ecosystem.
With the law’s passage, it said, uncertainty over possible tariff hikes has been eased and Korean companies will be able to compete on equal footing with rivals.
The association added that the measure is expected to help create a more stable business environment across the industry — including automakers and parts suppliers — and support expanded investment.
It said the industry will continue investing in technology innovation, productivity improvements and the shift to future vehicles, while also working to strengthen the domestic production base through efforts such as boosting domestic demand and building a virtuous cycle in the parts ecosystem.
* This article has been translated by AI.
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