ANN/ THE KOREA HERALD – South Korea’s policymakers yesterday unveiled their goal of taking up 12 per cent of the global auto market and expanding the country’s capacity in manufacturing electric vehicles (EV) with 3.3 million units a year, expressing its confidence in tackling concerns over United States’ (US) inflation reduction bill.
Setting a target of becoming the world’s third-largest automaker, the government will “resolve regulatory barriers” and “offer tax benefits” to help local carmakers smoothly carry out investment projects worth KRW95 trillion (USD66 billion) between 2022 and 2026, the Ministry of Trade Industry and Energy said in a statement.
“The local industry has been facing difficulties, including the US Inflation Reduction Act. It is time for the private sector and government to collaborate,” said Industry Minister Lee Chang-yang, adding that strategies suggest directions where Korean carmakers are headed.
The plan was addressed at a meeting attended by the minister and chief executives from carmakers, including Hyundai Motor, Kia Motors, GM Korea and Renault Korea, in Seoul. The key plan is to expand Korea’s manufacturing capacity in EVs.
Other plans include fostering 30,000 engineers specialised in next-generation automobile technologies which would bolster the country’s competitiveness in vehicle software. The government plans to expand the global market share in chips for vehicles from 3.3 per cent in 2021 to 6.6 per cent in 2030 by developing 16 core items such as processors, sensors and power semiconductors.