What is the history behind South Korea's automotive industry?
The South Korean automobile industry began with its first assembled car using a U.S. military jeep-style car body and other parts in 1958. Shortly after, local companies from other industries entered the automobile manufacturing business and started technical cooperation with foreign companies. Foreign automotive companies could not conduct domestic business without joining local companies according to the government's automotive promotion policy. Since then, businesses worked to localize auto parts and develop a mass production system for exports. As a result, in 1986, Hyundai’s car model Excel (also known as Hyundai Pony) entered the U.S. market. With 16 million units sold, it was the highest selling model in the United States at that time.How has the South Korean automotive industry grown?
The leading manufacturer is the domestic brand Hyundai Motor Company, with Kia motors (partly owned by Hyundai) coming in second. After Kia was merged with Hyundai during the 1997 Asian financial crisis, the two companies have been working together to grow, resulting in their sales revenue steadily rising over time. As such, Hyundai Motors Group as a whole enjoys a major share in the country's car manufacturing market. While exports of vehicles have shown a downturn in recent years, the import value of vehicles is rising. The number of imported cars continues to show overall growth after the import of foreign automobile brands was initially allowed in 1987.What does the future hold for the industry?
Currently, the automobile industry is undergoing big changes. The South Korean government aims to produce 6.3 million FCEVs and build 1,200 refueling stations across the country by 2040 to reduce greenhouse gas emissions and develop energy independence. Additionally, more and more South Koreans are using car sharing systems, as alternate transport business models disrupt the traditional paradigm of car ownership. The leading car sharing company, Socar, started its business with only 100 cars in 2012 and now operates thousands of cars. Like other automotive manufacturers, Socar is also collaborating with IT companies to develop autonomous vehicles and combine it with their sharing system; a future-oriented move that looks to integrate emerging technologies with the automobile industry.
