Majority of automobiles depend on US, major improvement situation
Battery has the biggest impact, needs to take company-wide action

With the inauguration of US President Trump, his second term in office has officially begun.
As promised, the president is carrying out hundreds of executive orders. This includes deportations of illegal immigrants, a temporary suspension of subsidy enforcement, and, starting February 1, a 25% tariff on imports from Mexico and Canada.
Although there is still room for negotiation before it can actually be implemented, this means that the United States is taking a strong lead and moving forward.
Kia Motors plants in Mexico and Samsung and LG home appliance plants are also being affected, and they are even considering moving their plants to the United States.
President Trump has a great deal of distrust in eco-friendly products such as electric vehicles and batteries, and his plan also includes revitalizing oil resource extraction. He has also declared that he will change the name of the coast bordering Mexico and Cuba from the Gulf of Mexico, which has been used for hundreds of years, to the United States Gulf, and that he will also make Greenland, an autonomous Danish territory, a part of the United States.
They are not even hesitating to make statements that seem to acknowledge North Korea's possession of nuclear weapons, let alone the redeployment of US troops globally.
Based on the strong global dominance of the United States, it is wielding the sword at will, creating a great storm in the global market.
The meaning of being a world policeman has already been diluted, and the somewhat restored global climate change-related trends are being nullified, erasing everything that the Biden administration previously did.
The areas that will have the greatest impact on us will be electric vehicles and batteries, and the issue of retaliatory countervailing duties as the size of the trade surplus with the US grows.
As mentioned above, the problem of US imports from Mexico is already emerging as an imminent problem, and the Inflation Reduction Act (IRA), the Biden administration's greatest achievement, is at a point where it must consider at least reducing or even abolishing it.
Concerns are growing that subsidies for electric vehicles and batteries may be abolished, and various tax benefits may also be reduced, depending on the progress of the plan.
The scale of our country's investments in the United States is already astronomical, so now that we must receive tax benefits and subsidies from the U.S. government, the existing promises made by the U.S. are being reversed.
Due to the logic of the powerful countries, existing international agreements are being reduced to pieces of paper.
As America's sword sweeps across the global market, China and other Western countries are beginning to be seriously affected.
As existing international practices are being shaken to the point where even Europe, China, and Russia are taking notice, new alliances and cooperation are taking place.
The key issue is how to avoid Trump's increasingly violent attacks.
We can clearly say that there is a possibility of re-editing not only the areas mentioned above, but also the North Korea-U.S. FTA and the defense budget issue.
As the aforementioned trade surplus with the US is growing, our government is intentionally increasing the amount of energy imported from the US to reduce the surplus.
As the price of American crude oil, which is twice as high as that of Middle Eastern crude oil, increases, it is likely that it will soon account for 20% of total energy imports.
In addition, problems in the automobile industry are growing. More than half of the trade surplus with the US in the automobile industry is concentrated in the US, so improving this is a major concern.
This is because if countervailing duties are imposed on countries with large trade surpluses, which are likely to occur soon, tariffs of at least 10-20% can be expected.
In this situation, it will be difficult to export Genesis vehicles manufactured domestically to the United States as they will be subject to a tariff of at least 10%. However, it is very difficult to diversify exports by developing other overseas countries right away.
The biggest problem is that there is no one in the country who can have a showdown with Trump. Since the impeachment and martial law issues are taking place in the first half of this year, it is inevitable that a president who will represent the country will emerge in the second half after things are sorted out.
The most regrettable part is that there is absolutely no ability to deal with the various pressing issues and countermeasures that have been pressing since the beginning of the year in the absence of leadership.
This is because if we deal with Trump in the second half, it will most likely be too late to turn things around since they are already in progress or have been decided.
The biggest crisis is looming in the global market, and the frustration of not being able to resolve pressing issues that need to be addressed immediately is serious.
South Korea is an export-based country, and the FTA and WTO are the most important international agreements. However, as Trump-centered America First and America First policies are sweeping the global market, Europe and India can also be said to be pursuing America First policies.
As countries like Indonesia are using their abundant resources to pursue their own priorities, the global market is now being hit by their own priorities. This means that South Korea is in the most crisis this year, and concerns about North Korea are also growing.
Ultimately, the current situation is that each person must find a way to survive on their own. Although the government is continuing to hold public-private meetings, the limitations are very significant because the methods available are very limited.
Plan B is also being carried out on its own, but there are significant limitations, and each party is looking for ways to proceed, such as through lobbying. The automobile industry is a key industry that drives the domestic economy, and its importance is growing. As such, sanctions from the U.S. are a cause for great concern.
Hyundai Motor Company is delaying the completion ceremony of its electric vehicle plant in Georgia, USA, but it is resolving the emergency situation by increasing the production of hybrid vehicles rather than electric vehicles, and it is certain that there will be countermeasures for the future, but it is still facing many concerns.
Of course, we believe that we are already competitive enough to increase electric vehicle sales in the U.S. market without subsidies, and we are confident that we can implement a quality-based marketing strategy that can survive even without subsidies, but there are many variables.
We are also working on countermeasures to address the issue of the trade surplus with the US by significantly increasing investment in the US as much as possible, and we are doing our best to reduce the ratio of the trade surplus with the US while accelerating overseas diversification.
The biggest problem is the battery industry. Since batteries are invested with a 5-6 year horizon, the subsidies and tax benefits from the Trump administration are being shaken at the completion stage, and deficits are continuing to accumulate.
However, it can be said that the biggest impact will be felt as sales of electric vehicles, the largest demand source for batteries, have decreased significantly and subsidies have been eliminated.
Efforts to diversify into other fields such as ESS are underway, but the situation is not easy. The crisis is getting even worse as Chinese batteries such as those from CATL are expanding their global low-price offensive.
The government is trying, but it is not an easy situation. We must do our best and take company-wide measures.
We must find a solution that can overcome the various problems that hinder exports while making every effort to integrate industry, academia, and research.
The first half of this year will not be easy, but we must find a way to endure and survive with the mindset of each person surviving on their own, and the government must quickly and quickly fulfill its normal role as the country's leadership system.
Ultimately, the only way is to analyze the various problems caused by Trump's orders in advance and find alternatives in real time.
As President Trump has proven during his first term in office, he is a true businessman, so we must find the most realistic way to give and take.
Rather than responding strongly and giving them a negative view, it is essential to make them see you as a solid ally and make them realize that you are on the same side.
Therefore, the most important thing is to be able to give what you have to give and receive what you need in return. In other words, you need to find the best cost-effectiveness and use it to your advantage.
I hope that we will do our best to overcome the current crisis and build a foundation for a leap forward. I hope that the government, as well as the National Assembly, and the ruling and opposition parties, will stop their political strife and seek a wise solution through a clear agreement.
The current situation is difficult for everyone, both domestically and internationally. The uncertainty of the future is growing. The efforts of the people are natural, but the self-reflective solutions of the government and the National Assembly are even more important.