The drastic action by the Korean government ensures financial and logistics support to help their car manufacturers overcome the crisis called COVID-19.
South Korea said it would speed up customs clearance, arrange freight / components and support liquidity for the domestic car industry – a movement that many experts consider to be reasonable, timely, and mandatory when this field occupies about 12% of the Korean workforce.
COVID-19 epidemic has caused Hyundai, Kia and many automobile companies to close their manufacturing plants and dealerships in the US and Europe.
“The existence and survival of the business is a top priority in the context of the world’s supply and demand going down dramatically,” said Minister of Industry Sung Yoon Mo in a meeting with car industry leaders, representatives of local component suppliers and dealer associations.
For the time being, Korea has not confirmed how much or what form of liquidity support, it will be known this is part of an emergency financial assistance of up to 50 trillion Won (US $ 39 billion) to support the economy.
Europe and the US occupies 70% of total exports of Korean car manufacturers and 54% of export components.
Currently, Korean car manufacturers have enough spare parts to meet assemblage needs in the next 2 months.