'Overcoming COVID-19'... Government Injects 10 Billion KRW into R&D for Auto Parts Companies

Government Announces R&D Support for Auto Parts Companies
"Priority Support for Domestic Factories Halted Due to 'COVID-19'"

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The government announced that it will provide 10 billion KRW in research and development (R&D) funds to automobile parts companies struggling due to the novel coronavirus disease (COVID-19).

On the 29th, the Ministry of Trade, Industry and Energy announced that it will publicize the "Automobile Parts Companies Reboot Project" on the 30th.

This is an implementation of the "COVID-19 Response Automobile Parts Supply Stabilization Measures" jointly announced by related ministries on February 7. At that time, the government stated that it would concentrate all efforts on supporting companies facing difficulties in parts supply due to the suspension of operations at Chinese factories.

Through this Reboot Project, the government aims not only to stabilize parts supply in the domestic automobile parts industry but also to secure growth momentum.

A total of 10 billion KRW will be supported this year. Approximately 18 projects will be supported, each with about 550 million KRW. After the announcement by the 28th of next month, the project will be fully launched from May.

The main contents include ▲ R&D support to improve the performance and usability of essential vehicle parts such as interior, convenience, and body parts ▲ support for the development of convergence parts technology applying other industrial technologies such as ICT and new materials based on existing automobile parts technology.

It also includes focused support to stabilize the supply of core parts such as wiring harnesses (wires). The project promotes technological advancement of automobile parts dependent on specific countries. If domestic production technology is secured, concentrated support will be provided to stabilize imports of domestic automobile parts.

Companies that experienced production disruptions due to the suspension of domestic factory operations caused by COVID-19 will be given preferential support.

Choi Namho, Director of Manufacturing Industry Policy at the Ministry of Trade, Industry and Energy, said, "We hope the Reboot Project will help domestic automobile parts companies overcome COVID-19," and added, "We will continue to seek R&D support measures so that small and medium-sized automobile parts companies can continuously secure technological capabilities and transform into future car parts companies to capture the market."

Meanwhile, the Ministry of Trade, Industry and Energy has announced projects to secure core component technologies for hydrogen and electric vehicles. It will support 39 billion KRW for the market-independent xEV industry promotion project, 4 billion KRW for next-generation fuel cell system technology development for hydrogen vehicles, 5 billion KRW for localization of electric power components, 6 billion KRW for hydrogen truck conversion technology, and 3 billion KRW for the development of non-regular hydrogen storage devices for hydrogen vehicles, respectively.

This content was produced with the assistance of AI translation services.