South Korean government on Thursday will exempt air cargo fees, defer tariffs and other taxes on imports of car parts for automakers and buy EVs or hydrogen vehicles ahead to aid the automobile industry amidst slumped overseas demand.

Car motors and air compressors join the list for special tariff measures in case for changing the transport mode from ships to aircrafts. Seoul took the same step for three auto parts including wiring harness in February when supplies from China were disrupted due to the virus outbreak.

The government also granted a waiver in tariff and value-added tax dues on auto parts imported for up to nine months and extended the deadline for payment for maximum 12 months. For inventory control, imported parts are allowed to store at bounded areas for up to one year, extended from earlier two to three months.

To make up for overseas losses, the government will expedite order of 8,700 EVs and make advance payment of up to 70 percent. Subsidy for electric trucks will also increase.

Auto parts suppliers will be offered business portfolio consulting and support for future mobility research and development from a new committee under the Korea Automotive Technology Institute.

Domestic auto makers and their parts suppliers are in collective danger due to plunge in overseas demand amid lockouts and lockdowns from pandemic.

Korea’s exports of cars and related parts dwindled 53.2 percent on year in April 1-20 and output is projected to dwindle by 30 percent in April and May against a year-ago period.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]