▲ Summary and features of the 'Special Act on the Future Automobile Parts Industry' (Image source: Ministry of Trade, Industry and Energy)

Reflecting SDV trends… Software included in the scope of future car technology and parts
Comprehensive support for core competencies such as future vehicle technology development, commercialization, and standardization

The Ministry of Trade, Industry and Energy (MOTIE) announced that it will support the parts industry to quickly adapt to the future car market and revitalize the ecosystem through the 'Special Act on the Future Automobile Parts Industry' scheduled to be implemented in July 2024.

On the 10th, the Ministry of Trade, Industry and Energy held the first briefing session on the 'Future Automobile Parts Industry Act' at Pyeongtaek (Pyeongtaek University) with approximately 100 automobile parts companies in attendance.

This briefing session was held to explain the purpose and main contents of the 'Special Act on Promotion of Transformation and Fostering of Ecosystem of Future Automobile Parts Industry', which will be fully implemented in July 2024, to companies and to hear opinions from parts companies on the enactment of lower-level laws to provide practical assistance to the industry.

The main contents of the 'Future Automobile Parts Industry Act' include: △Including software in the scope of future automobile technology and parts to reflect the characteristics of future automobiles represented by SDV; △Comprehensive support for core competencies of future automobile competitiveness such as future automobile technology development, commercialization, and standardization; △Special provisions for promoting domestic investment in the future automobile industry and strengthening the supply chain.

ahAt the event held that day, the '2024 Future Vehicle Research and Development (R&D) Support Direction' and 'Successful Cases of Business Transformation of Parts Companies' were introduced, with a total investment of 392.4 billion won to support the development of future vehicle technology by parts companies in 2024.

At the parts company discussion, KG Mobility, Dongha Precision, Emprotech, Younghwa Tech, and Yungjin Enterprise presented their opinions on expanding investment support, continuing to promote future car transition support projects, and providing equipment support for development and testing.

The Ministry of Trade, Industry and Energy said, “With the enactment of the ‘Future Automobile Parts Industry Act,’ a strong support system has been established for a rapid and flexible transition to the future automobile industry and to strengthen the competitiveness of the parts industry. Accordingly, we will focus on securing ultra-gap technological competitiveness, preemptive support for business restructuring, and infrastructure expansion, and will also supply 9.7 trillion won in future automobile policy financing by 2024.”

Meanwhile, the Ministry of Trade, Industry and Energy plans to hold regional briefing sessions in Pyeongtaek, Daegu (January 12), Ulsan (January 16), and Gwangju (January 18), and plans to reflect the results of the opinion collection in the enactment of lower-level laws and regulations.