KOTRA Teams Up with Hyundai Motor and Kia to Support Korean Parts Suppliers' Expansion into Overseas Markets

Auto Parts Exports Have Declined Since 2023
Rapidly Changing External Factors Cited as Cause, Support Needed for Market Development
On-Site Sales of Korean Parts to Overseas Automakers

KOTRA has joined hands with Hyundai Motor Company and Kia Corporation to seek new export opportunities for domestic auto parts companies.

The Korea Trade-Investment Promotion Agency (KOTRA) and Hyundai Motor Company and Kia Corporation (Hyundai Motor Company and Kia Corporation) announced on the 9th that they had signed a Memorandum of Understanding (MOU) on July 8 to support the overseas market entry of domestic parts suppliers. The agreement was signed to help domestic auto parts suppliers, who possess excellent technological capabilities but face challenges in exporting, expand into global markets.

Auto parts are the sixth largest among Korea's 15 main export items and serve as a key intermediate good. While the automobile industry, a pillar of Korea's exports, set a new record last year by diversifying its markets to Europe and other regions and reaching USD 72 billion in exports—even amid U.S. tariff measures—auto parts exports declined by 6% year-on-year to USD 21 billion. Since 2023, exports have continued to decrease due to changes in the global trade environment, geopolitical risks such as the Russia-Ukraine conflict and Middle East wars, and the expansion of localization. Even in the first half of this year, exports stood at USD 10 billion, down 6.3% from the previous year.

KOTRA and Hyundai Motor Company and Kia Corporation signed a Memorandum of Understanding (MOU) on the 8th to support the overseas market entry of domestic parts suppliers. The photo shows Sangyoung Ko, Head of KOTRA's Global Supply Chain Security Office (left), and Heeseop Jung, Director of the Win-Win Cooperation Office at Hyundai Motor Company and Kia's Purchasing Headquarters (right), posing for a commemorative photo after the MOU signing. Photo by KOTRA.

KOTRA has analyzed that, due to rapidly changing external factors, domestic auto parts companies are struggling with exports and thus require support in developing new markets. To address this, KOTRA and Hyundai Motor Company and Kia Corporation plan to collaborate and directly promote Korean parts to overseas automakers on-site.

The first joint project following the signing of the agreement will be the "Ford Korean Suppliers Day" in Detroit, USA, on July 14, and the "Stellantis Innovation Tech Show" on July 16.

These events will be held at the Detroit headquarters of Ford and Stellantis, two leading global automakers in the U.S., and will feature 44 outstanding parts suppliers partnering with Hyundai Motor Company and Kia Corporation. Based on the specific needs of parts cooperation, KOTRA and Hyundai Motor Company and Kia Corporation jointly identified potential suppliers, and Ford and Stellantis made the final selections. In addition, to help domestic suppliers develop strategies for entering the U.S. market, a "U.S. Automaker Purchasing Policy Seminar" will also be held to provide in-depth market information.

Kang Kyungsung, President of KOTRA, stated, "This business agreement with Hyundai Motor Company and Kia Corporation is significant in that it creates a model case of mutually beneficial growth for both large and small companies, by combining the global networks and overseas marketing support capabilities of both organizations." He added, "KOTRA will continue to strengthen support and secure supply chain entry opportunities in Europe, Japan, and other regions in the second half of the year to further expand exports for auto parts companies facing difficulties."

This content was produced with the assistance of AI translation services.