Synopsis
On March 28, the South Korean automotive sector called for initiatives to alleviate the expected consequences of impending U.S. auto tariffs. This appeal was made during a meeting with First Vice Industry Minister Park Sung-taek, amid concerns over the tariffs' impact on the local industry heavily reliant on exports.Key Takeaways
- South Korean automotive industry seeks measures to counter U.S. tariffs.
- Meeting held with First Vice Industry Minister Park Sung-taek.
- Concerns over export reliance fueled the discussions.
- Request for government to maintain negotiations with the U.S.
- Potential relocation of GM Korea due to tariffs.
Seoul, March 28 (NationPress) The South Korean automotive sector has urged for initiatives to mitigate the expected impact from the U.S. administration's upcoming auto tariffs and reciprocal tariffs, as reported by officials.
During a meeting with First Vice Industry Minister Park Sung-taek, who toured Kia Corp.'s vehicle production site in Gwangmyeong, located just south of Seoul, and a primary export port in Pyeongtaek, approximately 65 kilometers south of Seoul, local industry representatives made their appeal, according to the Ministry of Trade, Industry and Energy.
This meeting occurred amidst rising apprehension regarding the effects of the forthcoming U.S. auto tariffs on the domestic sector, which is significantly dependent on exports, as noted by the Yonhap news agency.
On Wednesday (U.S. time), U.S. President Donald Trump enacted a proclamation to implement 25 percent tariffs on all imported vehicles and essential auto components. These tariffs are scheduled to commence next Wednesday.
The ministry reported that industry leaders urged the government to persist in negotiations with the Trump administration to ensure that Korean automakers do not face unfavorable treatment compared to their competitors under the U.S. tariff framework.
They also advocated for support measures aimed at auto parts manufacturers, who are expected to suffer considerable repercussions from Washington's actions, such as an emergency liquidity program and consultations on market diversification.
Particularly, there are growing concerns among industry analysts that GM Korea Co., the South Korean branch of General Motors Co., might exit the country, given that 85 percent of its vehicles are exported to the U.S.
During an investors conference on January 29, GM Korea's Chief Financial Officer Paul Jacobson reportedly indicated that the company might need to contemplate relocating its manufacturing operations if the U.S. tariffs become a permanent fixture.
The ministry intends to formulate urgent response strategies to the U.S. auto tariffs next month, including methods to enhance the environment for corporate investments within the country.
