"Era of Major Transformation in the Auto Industry... Actively Foster Future Car Parts Companies and Address Job Reduction"

2021 International Green Car Exhibition Held in Gwangju from 18th to 21st
Calls for Transition to Future Car-Centered Industrial Ecosystem
Electric Vehicles Reduce Workers by 20-30% and Parts by One Third Compared to Internal Combustion Engine Cars

[Asia Economy Reporter Ki-min Lee] As the global automotive industry ecosystem rapidly shifts from internal combustion engine vehicles to electric vehicles, it has been pointed out that South Korea must actively foster future car parts companies and respond to job reductions in order to flexibly cope with this change and lead the market.

The Korea Automotive Journalists Association held a symposium titled "Carbon Neutrality, the Future of the Automotive Industry" on the 18th at the Gwangju Kim Dae-jung Convention Center Convention Hall during the pre-event of the '2021 International Green Car Exhibition.'

On this day, Lee Min-woo, Director of the Automobile Division at the Ministry of Trade, Industry and Energy, gave a keynote speech titled "Future Vehicle Diffusion and Market Preemption Strategy," stating, "It is necessary to accelerate the supply and demand innovation of eco-friendly vehicles to promote the spread of electric and hydrogen vehicles and to intensify efforts to achieve carbon neutrality by 2050." He added, "A fair transition to an industry ecosystem centered on future vehicles, including fostering 1,000 future car parts companies, is required."

Following this, Kim Yong-won, Executive Director of the Korea Automobile Manufacturers Association, gave a presentation titled "The Impact of 2050 Carbon Neutrality and the 2030 National Greenhouse Gas Reduction Target Increase on the Automotive Industry," warning that the transition to electric vehicles could lead to job losses in automobile manufacturing and parts sectors, urging proactive measures. Kim emphasized, "Electric vehicles require less labor compared to internal combustion engines, reducing workers by 20-30% and parts by about one-third, making employment reduction inevitable. If electric vehicles account for 33% by 2030, 10% of companies may disappear, and approximately 35,000 jobs could be lost, necessitating active responses."

During the panel discussion following the keynote speeches, Kim Tae-nyeon, Director of the Future Mobility Research Institute, also stated, "To achieve carbon neutrality by 2050, automobile companies must expand investment in early development and commercialization of next-generation batteries to improve profitability." He pointed out, "At the government level, long-term funding plans to support future vehicles should be prepared, and for expanding electric vehicle adoption, emphasis should be placed on drastically improving consumer convenience, such as expanding charging infrastructure."

In line with the 2021 Green Car Exhibition, the Korea Automotive Journalists Association opened a special exhibition titled "Green Cars that Shined in 2021" from the 18th to the 20th, showcasing major eco-friendly vehicles released this year, including Hyundai Motor Company's Ioniq 5, Kia EV6, Genesis GV60, and Mercedes-Benz The New EQA.

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