The government will inject KRW 8 trillion this year to foster the future vehicle and autonomous vehicle industries. It will invest KRW 15 trillion in the mobility sector over the next five years.

The Financial Services Commission and the Ministry of Trade, Industry and Energy held a public-private joint meeting on the transition to future vehicles and the launching ceremony of the Future Vehicle Parts Industry Council on the 14th at the Korea Automobile Industry Cooperative in Seocho-gu, Seoul. The event was organized to establish a comprehensive support system to accelerate the transformation of the domestic automobile industry ecosystem and to identify policy tasks.

The Financial Services Commission assessed that, as the automobile industry shifts toward future vehicles such as autonomous vehicles and electric vehicles, the burden is increasing on small and medium-sized as well as mid-sized parts manufacturers that lack the financial capacity to invest in facilities and research and development. In response, it announced that it will provide KRW 15 trillion in funding to the mobility sector over the next five years through the National Growth Fund.

This year, the government plans to provide a total of KRW 18 trillion in policy financing, including KRW 9.7 trillion for strengthening the fundamentals of the auto parts industry and KRW 8.3 trillion for fostering the future vehicle and autonomous vehicle industries. The newly launched council intends to support difficulties faced by the parts industry across various areas, including finance, research and development, and exports.

According to the results of the 2025 Automobile Parts Industry Survey released that day by the Korea Automobile Research Institute, out of 21,000 domestic automobile parts businesses, only 578 were dedicated future vehicle parts manufacturers. Companies that have pursued or are planning business transformation or diversification accounted for just 6.1% of the total.

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