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Business trends

South Korean auto suppliers struggle to survive

Government throws $3bn lifeline to sector hit by drastic technological change

South Korean automakers' slow push into electric vehicles has put a heavy burden on the country's parts suppliers, who will need to heavily invest in next-generation technologies or be left behind in the race toward the autonomous future.   © Reuters

SEOUL -- South Korea's auto parts suppliers are struggling to survive, facing challenges from drastic technological change and tough competition with Chinese rivals, according to market data and analysts.

The government on Tuesday unveiled an emergency $3 billion funding plan to resolve a liquidity crisis in the supply chain, as sales tumble at the country's big carmakers such as Hyundai Motor and Kia Motors.

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