To Be Exempted from Customs Inspection for 1 Year
The South Korean government announced on May 28 that it would provide special guarantees worth 500 billion won, along with a one-year customs inspection exemption, for auto parts manufacturers.
Specifically, automakers will provide 20 billion won, Korea Credit Guarantee Fund or Korea Technology Finance Corp. will add 20 billion won and local governments will add five billion won to set up the 500 billion won guarantee program.
“Although automobile exports dropped last month in the wake of the COVID-19 pandemic, automakers, unlike auto parts manufacturers, are still in a relatively better situation and the government’s conclusion is that assistance for auto parts manufacturers is more urgent,” the Ministry of Economy and Finance explained.
The one-year customs inspection exemption will be provided even without any request so that the manufacturers’ business burden can be reduced. In addition, the government is going to complete 80 percent and 90 percent of its public car purchase for this year by the end of the first half and the end of the third quarter, respectively. Then, a total of 9,500 public vehicles will be purchased by the government by the end of September. Also, the government is planning to double electric truck supply for this year to 11,000 units.