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Policy Issue

Economic Policies, H2 2021 & Future Cars Transition Strategies for Auto Parts Companies
Jul 2021
1. Economic policies, H2 2021

The government has set 3+2 goals for the second half: Three aim to help the economy rebound completely from the pandemic, and the other two directed towards economic restructuring for the future. The 3+2 framework is as follows:

Three to support a strong rebound
 - One: Fast and strong recovery
 - Two: Help with recovery in working households
 - Three: Inclusive recovery

Two directed towards economic restructuring for the future
 - One: Develop new growth engines
 - Two: Prepare for changes in the future

2. Future cars transition strategies for auto parts companies

The government announced its strategies to help around 1,000 auto parts makers transform into key suppliers of next-generation automobiles by 2030.

Policy goals
 - Transform 1,000 auto parts suppliers into future cars companies by 2030
 - Increase global parts companies with sales of 1 trillion won from 13 to 20 by 2030
 - Increase auto parts companies exporting US $10 million from 156 to 250 by 2030

Strategies
 - Establish a future cars conversion support platform
 - Support business model innovation in the auto parts industry
 - Expand support measures for business reorganization


* For further details, please refer to the attached file 
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