Government launches future vehicle parts industry council... 15 trillion won fund and 18 trillion won in policy financing support

*This content was translated by AI.

The Ministry of Trade, Industry and Energy and the Financial Services Commission held the 'Public-Private Joint Future Vehicle Transition Seminar' at the Korea Automotive Industry Cooperative in Seoul on the 14th and officially launched the 'Future Vehicle Parts Industry Council,' a control tower to support the transition of the parts industry toward future vehicles.

The government promised large-scale financial support to alleviate the burden on parts companies of maintaining internal combustion engine facilities and making new investments during the transition to future vehicles. The Financial Services Commission plans to concentrate 15 trillion won in funding for the mobility sector over the next five years through the 'National Growth Fund.' This year, a total of 18 trillion won in policy financing is scheduled to be invested to support the business transition of parts companies and the development of the future vehicle industry.

The council launched today is composed of 18 supporting institutional investors, including the Korea Institute for Industrial Technology Advancement, KOTRA, and the Korea Development Bank. The council will serve as a 'one-stop platform' that provides various types of support to parts companies, including research and development (R&D), export channels, workforce transition, and consulting, all in one place. Moon Shin-hak, Vice Minister of the Ministry of Trade, Industry and Energy, stated, "It is impossible to maintain competitiveness in future vehicles without support for the parts ecosystem," and added, "We will prepare additional comprehensive support measures in the first half of the year."

According to the results of the '2025 Automotive Parts Industry Survey' released today, among the total of 21,000 automotive parts companies, 4,142 (19.7%) were dedicated to internal combustion engine parts, while only 578 (2.7%) were dedicated to future vehicle parts. Only 1,286 companies, representing 6.1% of the total, were actively pursuing or planning a transition to future vehicles. Companies cited insufficient funding and lack of technological competitiveness as the biggest challenges in their transition. Efforts to respond to carbon neutrality were also concentrated mainly among large-scale enterprises, highlighting the marginalization of small and medium-sized parts companies.

Kwon Dae-young, Vice Chairman of the Financial Services Commission, said, "The automotive industry has now evolved into a high-tech industry combining AI, semiconductors, and software, and a national all-out effort," and added, "We will provide full support to ensure that research and development and financial support are organically connected in cooperation with relevant ministries." The government announced that it plans to continuously review policy needs annually based on the results of this survey and to continuously improve effective support measures that can be felt on the ground.

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*This content was translated by AI.