Hyundai Motor: "Tax Benefits for Hybrid Vehicles Needed Even After 2025"

Jang Young-jin, 1st Vice Minister of the Ministry of Trade, Industry and Energy

[Asia Economy Reporter Choi Dae-yeol] Kim Dong-wook, Vice President of Hyundai Motor Company, said on the 27th, "It is necessary to consider including future car technologies such as electric and hydrogen vehicles and autonomous driving as national strategic technologies."

Vice President Kim made this statement during the Nichiauer Forum held under the theme of the Korea Industrial Federation, where he met with Jang Young-jin, First Vice Minister of the Ministry of Trade, Industry and Energy. He said, "Additionally, there is a trend that tax benefits for hybrid vehicles will only be supported until 2024, but continuous support beyond 2025 is necessary to respond to the future car transition of the parts industry."

The Nichiauer Forum is a venue to hear the opinions of policy authorities on various industrial issues, named after the idea of utilizing spare time during breakfast, lunch, or dinner. This was the second session following last month, where Vice Minister Jang presented on the new government's industrial and trade policy directions.

Park Jung-ho, Executive Director of Renault Korea, said, "Due to rising shipping costs and oil prices, logistics costs for automobile production and export are rapidly increasing," and requested, "Please provide logistics subsidies (vouchers) for export vehicles to increase sales for domestic small and medium-sized partner companies." Kim Yong-gu, President of Dohwa Engineering, said, "To realize engineering project fees and improve unfair ordering systems, the Ministry of Trade, Industry and Energy should actively take interest so that related ministries such as the Ministry of Strategy and Finance can step in."

Vice Minister Jang said, "To revitalize private investment, we have identified 53 regulatory reform tasks related to the 337 trillion won scale projects such as secondary battery investment projects, of which 26 have already been resolved or improvement plans have been found," and added, "To strengthen corporate site support, we plan to raise the negative zone ratio within industrial complexes, where sites are allowed without industry regulations, from the current 30% to 50%."

He also mentioned plans for fostering future advanced industries and upgrading core industries. He said, "We will relax the enrollment requirements for advanced industry departments, such as increasing quotas if only faculty among land, faculty, teachers, and revenue-generating basic assets is met, and expand support for next-generation semiconductor leading technology development including power, vehicles, and artificial intelligence (AI)," adding, "We plan to increase support for the future car transition of 1,200 parts companies and promptly complete the preliminary feasibility study for the 1 trillion won hydrogen reduction steelmaking technology acquisition."

Jung Man-gi, Chairman of the Industrial Federation Forum, said, "The new government's industrial policy direction is well established to restore the growth potential of industries that have been stagnant, but the issue is the driving force for implementation," and emphasized, "Considering the current situation of a minority government, the Ministry of Trade, Industry and Energy must strive to gain cooperation from the opposition party."

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