Software and Electronic Components Business Takes Off... Future Car Special Act Passed by National Assembly

Ministry of Industry: "Establishing a Strong Support System for the Auto Parts Industry"

The Special Act on Promoting the Transition of the Future Automobile Parts Industry and Fostering the Ecosystem passed the National Assembly plenary session on the 8th. It is expected that the pace of future car parts businesses, such as major companies' software and electronic components (automotive electrical and electronic equipment), will accelerate.

The Special Act was proposed to support the rapid and flexible business restructuring of the car parts industry and to revitalize the parts ecosystem.

The Special Act includes ▲clarifying software (SW) as future car technology ▲comprehensive support for future car technology development, commercialization, and standardization ▲creating a collaborative ecosystem among parts companies, complete car manufacturers, and small, medium, and large enterprises ▲special provisions to promote domestic investment and strengthen supply chains in the future car industry.

The Ministry of Trade, Industry and Energy evaluated that the enactment of the Special Act has established a strong support system for the parts industry, including SW and electronic components. It also expects to promote domestic investment.

The Special Act will be promulgated after the Cabinet meeting resolution and will take effect six months after promulgation.

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