"Era of Great Transformation, New Phase in Korea-Japan Automobile Industry Cooperation"

It has been analyzed that South Korea and Japan, which are competitors in the global automobile market, may explore new possibilities for cooperation to respond to the potential re-election of former U.S. President Donald Trump and the digital transformation of the mobility industry.

The Korea Trade-Investment Promotion Agency (KOTRA) diagnosed in its report titled "Response Strategies and Implications of the Japanese Automobile Industry in the Era of Great Transformation," released on the 1st, that the South Korean and Japanese automobile industries are commonly pursuing strategies to expand local production in the U.S. and localize parts procurement in response to changes in U.S. trade policies such as high tariffs.

KOTRA paid attention to cases where battery-related supply contracts were signed between South Korea and Japan, such as Toyota and LG Energy Solution, Nissan and SK On, evaluating that despite their competitive relationship, the possibility of cooperation is increasing.

The report highlighted that Japanese automobile companies are expanding strategic linkages with different industries to strengthen competitiveness in software-centric vehicles (software-defined vehicles), and analyzed that there is a high possibility of cooperation with South Korea, which has strong information and communication technology and software capabilities. In particular, it predicted that if South Korean and Japanese companies form alliances in the software sector related to mobility services, significant synergy would be expected.

KOTRA forecasted that while competition between the two countries will continue in emerging markets, cooperation between South Korea and Japan is sufficiently possible in areas related to responding to the transition period and securing future growth engines.

Lee Ji-hyung, head of KOTRA's Economic and Trade Cooperation Headquarters, said, "The South Korean and Japanese automobile industries have grown through competition and cooperation so far," adding, "In a situation where uncertainty in the global trade environment is increasing, it is necessary to expand cooperation opportunities between the two countries."

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