When the government promotes business: South Korea helps automakers

FineAuto
When the government promotes business: South Korea helps automakers

The South Korean authorities today formally announced the provision of logistical and financial support for the automotive industry to overcome the crisis caused disruptions in supply chains from Europe and the United States.

To accelerate customs clearance, organized freight transport, the government will ensure liquidity support for the sector, which, according to official figures, employs about 12 % of workers across the country.

Pandemic coronavirus infection led to a stop of work of automobile factories and dealerships in the U.S. and Europe that are expected to affect South Korean manufacturers Hyundai Motor Co and Kia Motors Corp.

At the meeting with the heads of companies involved in the supply of components, and representatives from other areas of the automotive industry, the Minister of industry of South Korea Sohn young-mo (Yoon Sung-mo) noted: “it Is time to prepare for the consequences of the global demand reduction and supply problems from Europe.” “The main thing now is to survive an unprecedented crisis, when demand and supply decrease simultaneously,” the Minister said.

The Ministry gave no details about what kind of support to maintain the liquidity provided by the government or what form support might take. This assistance is part of the 50 trillion won (39 billion dollars) from an emergency infusions to stimulate the economy, announced last week.

South Korea announced on 8 961 disease coronavirus (110 deaths).

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Hyundai Motor closed its Assembly plant in Montgomery (Alabama) last Wednesday after one of the employees revealed COVID-19. Due to the outbreak of coronavirus manufacturer suspended production at its plants in the Czech Republic and India.

According to the government, the share of Europe and the United States accounted for about 70% of Korean exports of manufacturers and 54 % of the exports of Korean auto parts.

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