The Korea Trade-Investment Promotion Agency (KOTRA) is joining forces with Hyundai Motor and Kia to support domestic auto parts companies struggling with export challenges.
KOTRA announced on July 9 that it signed a memorandum of understanding (MOU) with Hyundai and Kia on July 8 to assist domestic parts suppliers in entering overseas markets. This agreement aims to help companies with strong technological capabilities but facing difficulties in expanding their markets due to worsening external conditions.
Auto parts rank sixth among South Korea's top 15 export items, serving as a crucial intermediate good. However, exports have been on a continuous decline since 2023 due to geopolitical risks and changes in the global trade environment.
Last year, auto parts exports fell by 6% to $21 billion, and the first half of this year also saw a 6.3% decrease compared to the same period last year, totaling $10 billion.
KOTRA plans to directly target overseas automakers to open export channels for domestic parts suppliers. The first joint cooperation project will take place on July 14 (local time) in Detroit, USA, featuring 'Ford-Korean Parts Supplier Day,' followed by the 'Stellantis Innovation Tech Show' on July 16.
The events, held at the headquarters of global automakers Ford and Stellantis, will include participation from 44 top partner companies of Hyundai and Kia. The participating firms were jointly identified by the two automakers and ultimately selected by Ford and Stellantis.
Simultaneously, a briefing on U.S. automaker purchasing policies will be conducted to help establish market entry strategies.
Kang Kyung-sung, president of KOTRA, stated, "This agreement with Hyundai and Kia is significant as it creates a model for mutual growth between large and small enterprises. We will continue to create opportunities for supply chain entry in Europe and Japan in the second half of the year to actively support the export expansion of auto parts companies."
* This article has been translated by AI.
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