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The South Korean government has just announced a series of emergency support measures for car and auto parts manufacturers to mitigate the impact of the new tariffs imposed by President Donald Trump on imported vehicles.
These measures include financial support in the form of cash, tax incentive programs, and increased subsidies to boost the domestic market. The South Korean government has also pledged to negotiate with the US and expand export markets.
Specifically, the South Korean government will increase financial support from 13 trillion won to 15 trillion won this year. The domestic consumption tax will be reduced from 5% to 3.5%, and subsidies for electric vehicles will be increased from 20-40% to 30-80%.
South Korea also supports companies in expanding their vehicle exports to countries in the “Southern Hemisphere” – a region that includes developing countries in Africa, Latin America, and Asia.
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Hyundai Elantra. Photo: Car and Driver. |
President Donald Trump has just announced a 25% tariff on imported cars and light trucks. This has imposed a significant financial burden on South Korean automakers and auto parts manufacturers, causing considerable damage to the industry.
In 2024, South Korea’s automobile exports to the US reached $34.7 billion, accounting for 49% of the country’s total automobile export revenue.
The South Korean government stated, “With lower domestic production rates from Korean automakers in the US, our industry is at a disadvantage.”
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