South Korea's industry ministry announced on Thursday plans to provide up to 464.5 billion won ($317.6 million) in support for the automotive sector this year to bolster competitiveness in cutting-edge technologies like autonomous driving. The initiative follows record auto exports of $72 billion last year, despite U.S. tariffs. Focus areas include self-driving systems and electric and hydrogen vehicles.
The Ministry of Trade, Industry and Resources announced on February 5, 2026, plans to allocate up to 464.5 billion won ($317.6 million) to the automotive sector this year. The investment aims to enhance South Korea's competitiveness in advanced technologies, particularly autonomous driving, building on the industry's record $72 billion in exports for 2025 despite challenges from U.S. tariffs.
Of the total, 382.7 billion won will fund research and development of core technologies, including autonomous driving systems and components for electric vehicles (EVs) and hydrogen-powered vehicles. A public-private alliance on autonomous driving, established last year, will spearhead various self-driving projects, the ministry stated. In the EV and hydrogen vehicle areas, support will target innovations like cell-to-pack battery systems for EVs.
The remaining 81.8 billion won will finance investment projects and aid car parts manufacturers in regional hubs. This initiative underscores the government's commitment to positioning South Korea at the forefront of global automotive innovation amid evolving international trade dynamics. (148 words)
