South Korea auto industry urges stronger domestic production
May 28 (Asia Today) -- South Korean auto industry officials and experts called for stronger domestic manufacturing capacity Thursday as major economies move to protect their own industries through tariffs, subsidies and investment restrictions.
The Korea Automotive Industry Alliance held its 47th Automotive and Mobility Industry Development Forum at the Automobile Hall in Seoul under the theme "The Global Trade Paradigm Shift and Strategies to Strengthen K-Mobility Competitiveness."
Chung Dae-jin, chairman of the association, said major export markets, including the United States and the European Union, are strengthening protection for their domestic industries through tariffs, import and export controls and industrial support policies.
"South Korea is also expanding investment in future vehicles and improving its systems, but there are areas where it is not keeping pace with the speed of change in the global trade environment," Chung said.
Park Sung-kyu, an executive director at Hyundai Motor Group's business research institute, said high U.S. tariffs and import restrictions reflect a judgment that the existing free trade order no longer works in the country's favor.
"We are now in an era where economic security is national security," Park said. "In the end, the most important weapon is manufacturing competitiveness."
Park said core industries such as automobiles must improve competitiveness by integrating artificial intelligence.
Experts also called for policy measures to preserve South Korea's domestic production base.
Cho Soo-jung, a professor at Korea University School of Law, said China's electric vehicle production now accounts for more than 70% of global output, raising concerns about its growing control of the global market.
Cho said South Korea should actively consider trade measures, stronger foreign investment security reviews and tax incentives to promote domestic electric vehicle production.
Jung Ji-hyun, a research fellow at the Korea Institute for International Economic Policy, said China's overseas production strategy has evolved beyond simple geographic diversification into the construction of supply chain networks.
Jung said South Korea should prepare for the possibility that expanded overseas production could weaken domestic manufacturing. She said the country needs to strengthen its domestic production base for electric vehicles and future mobility while also reinforcing its battery and parts ecosystem.
-- Reported by Asia Today; translated by UPI
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This story was originally published May 28, 2026 at 4:58 PM.