South Korea to aid country's auto-parts industry amid US tariff concerns
ANI
28 May 2025, 14:43 GMT+10
New Delhi [India], May 28 (ANI): The South Korean government plans to provide 250 billion won (USD 182.4 million) in low-interest loans to small and medium-sized auto-parts manufacturers of the state until the end of next year, to help withstand potential negative impacts from the high tariffs imposed by the United States reports Korea Herald.The Ministry of Trade, Industry and Energy announced that auto-parts manufacturers who have exported environment-friendly vehicles since 2024 are eligible to apply for the loan program. Individual companies can receive a maximum of 500 million won in financial aid.This initiative is part of a larger governmental effort to assist industries facing trade uncertainties due to the US Donald Trump administration's tariffs on automobiles, auto parts, steel, and other imports.Overall, South Korea intends to allocate 28.6 trillion won in emergency funds and financial assistance to support its exporting businesses.South Korea's automobile export declined in April 2025 year on year, largely due to a sharp drop in shipments to the United States following Washington's imposition of steep tariffs on foreign-made cars.Exports to North America declined 17.8 per cent to USD 3.36 billion in April 2025, as compared with April 2024. Shipments to the US also plunged 19.6 per cent to USD 2.89 billion.A survey quoted by the newspaper suggests that if US President Donald Trump goes ahead with his current tariff policies, South Korean exporters may see a 4.9 per cent decline in exports during 2025 on a year-on-year basis.
The survey was conducted by local pollster Mono Research and commissioned by the country's major business lobby, the Federation of Korean Industries.The survey also suggested that the worst hit sector is expected to be companies that produce electronics, which is likely to see a steep decline of 8.3 percent, followed by automobiles and parts with a 7.9 percent drop, petroleum products down at 7.2 percent, general machinery at 6.4 percent, semiconductors at 3.6 percent and steel at 2.8 percent. (ANI)
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