ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more