Busan is good

Busan City Establishes Response Strategy to Overcome the Automotive Industry Crisis

내용

The City of Busan (Mayor Park Heong-joon) announced that it held the 51st Emergency Economic Response Meeting today (April 29) at 2:00 PM in Small Conference Room 1 at City Hall, chaired by Mayor Park, with participation from representatives of finished vehicle and parts companies, experts, and related organizations to discuss the "Response Strategy to Overcome the Automotive Industry Crisis in Busan."

○ The meeting was organized to proactively prepare for the foundation of the future automobile industry while simultaneously addressing concerns over the potential contraction of the regional industrial ecosystem, amid increasing worries about the impact of the recent high tariff measures by the United States on the export competitiveness of Korea’s automotive industry.

Around 20 participants attended, including representatives from five automotive companies, experts, universities, and related institutions. The meeting consisted of:
▲Presentation of the "Response Strategy to Overcome the Automotive Industry Crisis and Leap Toward the Future"
▲Gathering field opinions and discussion.

Busan City’s "Response Strategy to Overcome the Automotive Industry Crisis"

The City of Busan has established and will actively pursue the "Response Strategy to Overcome the Automotive Industry Crisis," consisting of three key strategies and seven detailed tasks, with a total investment of KRW 426.5 billion.

○ Through this response strategy, the City aims:

• ●In the short term, to overcome the business management crisis of local companies by securing growth engines;

• ●In the mid- to long term, to strengthen the capabilities of the automotive parts industry through logistics innovation and market diversification, and to advance the future automobile industry ecosystem by securing next-generation leading technologies and establishing key infrastructure.

[Overcoming Business Management Crises through Liquidity Support in Response to U.S. High Tariffs]

○ The City will promptly provide KRW 100 billion in facility investment funds to small and medium-sized enterprises (SMEs) and will expand support for business diversification and marketing, including assisting parts companies in developing alternative parts to broaden their sales channels and achieve sustainable growth.

○ In addition, Busan City will fully mobilize administrative support to ensure that local companies can actively utilize the emergency government supplementary budget recently allocated for trade sectors.

[Advancing the Future Automobile Industry Ecosystem through Next-Generation Leading Technologies and Key Infrastructure]

○ To secure a lead in the future vehicle market, the City will steadily promote the following initiatives:

• ●Support for industrialization of future automobile electrification components utilizing artificial intelligence (AI)

• ●Establishment of a Giant Casting Shared Center to assist the development of ultra-large integrated body parts.

○ For a rapid and flexible transition to the future vehicle industry, Busan City will also expand key infrastructure, including:

• ●Expansion of support for a dedicated future automobile platform and establishment of an Extended Reality (XR)-based Digital Twin System

• ●Construction of a performance and safety validation base for future automobile energy storage and drive component materials

• ●Establishment of a Future Automobile Cybersecurity Validation Support Center.

○ Furthermore, the City will strategically pursue:

• ●Development of a phased implementation roadmap for fostering Busan as a global future automobile hub

• ●Attraction of branch offices of national research institutes specializing in future vehicles

• ●Establishment of a policy and financial cooperation system by linking government-wide support measures.

[Strengthening the Capabilities of the Automotive Parts Industry through Logistics Innovation and Cooperation]

○ To improve logistics efficiency and reduce logistics costs for parts companies, Busan City will build an AI-based Digital Shared Logistics Platform and promote technology development and demonstration projects for smart ports based on autonomous driving.

○ In addition, the City will form an industry-academia-research-government cooperation body in the automotive sector to play a central role in fostering a global future automobile hub.
Busan City will also establish a system for capacity building and human resource development in collaboration with regional innovation centers and finished vehicle manufacturers.

Mayor’s Closing Remarks

Mayor Park stated, “The measures we announced today are both a mechanism to protect our companies amid the tariff war crisis and a starting point for our leap into the future. While crises come from outside, opportunities are created from within. Our City will make every effort to move beyond merely ensuring the survival of the automotive industry, our key regional sector, and achieve a transformation into a future-oriented automobile industry.
Let us turn this crisis into an opportunity by working together with private companies and the local community to build a sustainable future automobile ecosystem.”