South Korea To Aid Countrys Auto-Parts Industry Amid US Tariff Concerns

New Delhi: The South Korean executive plans to offer 250 billion gained (USD 182.4 million) in low-interest loans to small and medium-sized auto-parts producers of the state till the tip of subsequent 12 months, to assist face up to possible damaging affects from the prime price lists imposed through the United States, reviews Korea Herald.

The Ministry of Trade, Industry and Energy introduced that auto-parts producers who’ve exported environment-friendly automobiles since 2024 are eligible to use for the mortgage program. Individual firms can obtain a most of 500 million gained in monetary support.

This initiative is a part of a bigger governmental effort to lend a hand industries going through industry uncertainties because of the USA Donald Trump management’s price lists on cars, auto components, metal, and different imports.

Overall, South Korea intends to allocate 28.6 trillion gained in emergency finances and monetary help to make stronger its exporting companies.

South Korea’s automotive export declined in April 2025 12 months on 12 months, in large part because of a pointy drop in shipments to the United States following Washington’s imposition of steep price lists on foreign-made vehicles.

Exports to North America declined 17.8 consistent with cent to USD 3.36 billion in April 2025, as when put next with April 2024. Shipments to the USA additionally plunged 19.6 consistent with cent to USD 2.89 billion.

A survey quoted through the newspaper means that if US President Donald Trump is going forward along with his present tariff insurance policies, South Korean exporters would possibly see a 4.9 consistent with cent decline in exports all through 2025 on a year-on-year foundation.

The survey was once performed through native pollster Mono Research and commissioned through the rustic’s main industry foyer, the Federation of Korean Industries.

The survey additionally steered that the worst hit sector is predicted to be firms that produce electronics, which is prone to see a steep decline of 8.3 p.c, adopted through cars and components with a 7.9 p.c drop, petroleum merchandise down at 7.2 p.c, basic equipment at 6.4 p.c, semiconductors at 3.6 p.c and metal at 2.8 p.c.