Beruflich Dokumente
Kultur Dokumente
OPPORTUNITIES
IN KOREA
AUTO &
AUTO PARTS
INVESTMENT
OPPORTUNITIES
IN KOREA
AUTO &
AUTO PARTS
KOREA,
Where Success Knows No Limits
Contents
04
Industry overview
12
19
Government policies
22
Cost
24
Success case
Overview
26
Related agencies
05
01 INDUSTRY OVERVIEW
INDUSTRY
OVERVIEW
Koreas auto
parts industry
The auto parts industry of Korea represents 5.6% of the countrys manufacturing-industry
production and 3.4% of the industrys added value. It accounts for 7.7% of Koreas employment.
Koreas auto parts industry has grown from a domestic-oriented industry to one driven by
exports, with the industry share accounting for 4.9% of the countrys total exports and with the
trade balance amounting to USD 21.4 billion.
Status of Korea's automotive industry (2012)
No. of
companies
Employment
(1,000 people)
Production
(KRW billion)*
Added value
(KRW billion)
Exports
(USD million)
Automotive industry
3,869
295
175,221
53,158
76,586
Share in
manufacturing
industry
6.1%
10.9%
11.6%
30.3%
13.7%
3,670
208
84,347
16,145
27,406
5.7
7.7
5.6
3.4
4.9
Proportion (%)
Trade
balance
(USD million)
63,825
21,406
* Source: ISTANS Major Industry Trend Index, Korea Institute for Industrial Economics and Trade (KIET)
* Note: 1 ) Exports and trade balance as of 2013
* Note: 2 ) Proportion shows the proportions to the manufacturing industry. Exports Proportion refers to the proportion to total exports.
* Note: 3 ) * KRW 1 billion = USD 908,348. Currency conversion based on March 5, 2015 rate.
Korea is the worlds fifth-largest auto parts manufacturer, following China, Japan, the USA and
Germany.
The global production share of Koreas auto parts industry rose to 3.7% in 2005 from 2.6% in
2000, reaching 5% in 2010.
Auto parts exports rose significantly and the industrys share of global exports increased
sharply as well, from a mere 1.1% in 2000 to 5.2% in 2012.
Hyundai Mobis ranking on the list of the top 100 global suppliers published by Automotive
News rose to sixth in 2013 from eighth in 2012 , with its 2013 sales reaching USD 24.677 billion.
06
2010
2013
Company
Sales Company
Sales Company
Sales
Denso (JP)
40,183
Bosch (DE)
35,849
Continental AG (DE)
Delphi (USA)
Mando (76)
07
01 INDUSTRY OVERVIEW
6,074
2,367
Classification
OEM
A/S
2009
342,236
2010
440,794
34,375
2011
33,500
2012
27,125
2013
24,677
6,741
Mando (53)
5,145
1,338
3,885
2,434
Hyundai Wia ranked 35th, rising three notches and with sales of USD 6.741 billion; Mando 43rd,
rising three spots and with sales of USD 5.145 billion; Hyundai Powertech 54th, rising 16 spots
and with sales of USD 3.885 billion; and Hyundai Dymos 76th, rising 14 spots and with sales of
USD 2.434 billion.
Halla Visteon Climate Control Corporation is not on the list, as it is considered a part of the U.S.
Visteon. Considering the companys total sales of USD 4.738 billion, the company is estimated
to rank 46th.
The global market share of Koreas auto parts manufacturers has risen along with the increased
sales and production of domestic finished-automobile manufacturers, and the rising exports and
local production of auto parts makers.
The global market share of Koreas top 5 auto parts businesses (in terms of annual sales) rose
from 3.2% in 2007 to 5.9% in 2013.
Fluctuation (%)
Exports
Total
20,533
82,689
445,458
-10.2
26,448
121,285
588,527
32.1
516,293
30,978
130,912
678,183
15.2
519,732
30,184
199,443
750,359
10.6
507,352
30,441
210,510
748,303
-0.3
While small- and medium-sized enterprises (SME) make up the majority of the auto parts
industry, conglomerates have an absolute advantage in OEM sales, accounting for 78.3% of the
total OEM deliveries in 2013.
This is mainly due to the fact that the conglomerates are at the top of the auto parts supply
chain and thus have benefitted from the growth of the domestic auto and auto parts industry,
mergers and acquisitions in the market and the parts standardization trend created by
modularization and platform integration.
Since the mid-2000s, auto parts exports have been rapidly growing and leading industry growth,
with its growth rate exceeding that of total sales.
Total industry sales have increased 8.6% annually on average while exports have soared 14.9%
over the past five years.
This is due to increased direct exports to global finished-automakers and auto parts
manufacturers, and the increased export of local auto parts due to the expanding overseas
production of Korean finished-automobile manufacturers.
Exports and imports of Koreas automotive parts industry
30,000
Trade balance
Export
Import
25,000
20,000
Koreas auto parts industry has experienced steady development spurred by the growth of
downstream industries.
The growth of the auto parts industry is attributable to increased unit prices due to
specification improvements; increased overseas production of domestic finished-automobile
manufacturers and increased exports due to the global sourcing trend of foreign finishedautomakers; increased outsourcing and modularization of the finished-automobile
manufacturers; and enhanced role of domestic auto part manufacturers.
15,000
10,000
5,000
0
1997
* Source: KOTIS
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Export
09
01 INDUSTRY OVERVIEW
The export growth is mainly due to increased automotive knock-down kit exports to India and
China but also due to a sharp increase in OEM parts exports to overseas manufacturers.
Import
08
HS
Items
8708999000
8708400000
2013
2012
Share
13,579
52.1
13,925
3,012
11.5
2,529
8708290000
2,689
10.3
2,386
8708940000
888
3.4
561
8708700000
453
1.7
460
8708930000
329
1.3
253
8512900000
318
1.2
286
8413304000
Fuel pumps
280
1.1
245
8708920000
265
1.0
270
8511909000
131
0.5
135
8708400000
1,027
21.0
1,057
8708999000
859
17.6
956
8409992000
469
9.6
567
8413304000
Fuel pumps
317
6.5
8708290000
285
8708940000
870850
The major export markets of Koreas auto parts industry are the USA, China, Russia, India, Brazil,
the Czech Republic, Slovakia and other countries where Korean finished-automobile makers
have established overseas production facilities.
While the industrys overseas production volume is highest in China, Korea exports most to
the United States (22.9%). This is because the high sales volume of Korean automobiles in the
United States has resulted in great demand for A/S parts.
China is Koreas second-largest auto part export market, following the United States, but the
importance of the Chinese market is relatively low due to localization and other issues.
Vendor
Hyundai Mobis
262
5.8
222
208
4.3
184
136
2.8
8708700000
117
8431200000
8512900000
Turnover
No. of employees
17,512
7,338
Hyundai Wia
6,287
2,688
Mando
5,060
4,192
Hyundai Powertech
3,273
1,800
Gearbox
129
Hyundai Dymos
1,604
1,096
Powertrain, seats
2.4
97
Hyundai Kefico
1,503
1,052
113
2.3
122
1,203
1,940
67
1.4
57
1,107
306
Kyungshin
1,103
1,340
10
Sungwoo Hitech
937
1,246
* Source: KOTIS
The list shows that the main auto parts export items are other auto body parts, gear boxes and
clutches and their parts, while the industrys main import items are gear boxes, engine parts and
fuel pumps.
Uncategorized and miscellaneous parts rather than specific unit parts make up the majority
of exports. For example, miscellaneous auto parts accounted for 52.1% of the total exports in
2013, while other auto body parts accounted for 10.3% of total exports the same year.
Despite the increased overseas automobile production, the export of gear boxes, especially
automatic transmissions that are difficult to procure locally, have significantly increased.
Main products
Automotive catalyst
The 10 vendors are large-scale, specialized parts manufacturers equipped with world-class,
advanced technologies. These companies consist of the so-called 0.5 stage partners that
deliver modules for the assembly process and the 1st stage partners that produce gearboxes,
axles and brakes.
Building on their expertise, these companies are expanding trade with global automakers
while striving to increase sales through local production in China, the United States and other
countries.
10
Status of
foreign direct
investment
01 INDUSTRY OVERVIEW
Automobiles
Auto parts
Amount
invested
No. of
investments
Amount
invested
2008
2009
2010
2011
2012
2013
51,038
10,379
417,352
373,301
3,694
889,391
799,563
74
67
36
44
42
34
40
332,672
287,840
88,481
2,079,611
188,890
254,056
274,941
Visteon
USA
Johnson
Controls
Delphi
Lear Corp.
Engine valves
Built-in modules
Door trim
Seats, etc.
Wiring harnesses
Seats, etc.
Mahle GmbH
Faurecia
Denso
Japan
2007
TRW
France
Hitachi Automotive
Systems
Valeo
Engine parts
Engine parts
Other
Magna
International Inc.
Door modules
Sale corporation
11
Global auto parts giants have advanced into the Korean market in order to use Korea as a key
axis of their global network strategies.
To that end, they have adopted the tactic of holding a majority of the equity shares of the local
auto parts companies they have invested in.
The region has other important auto-manufacturing countries, including Japan and China. But
Korea has been assessed to have strategic significance due to its market size and production
conditions.
12
13
Locations of
Koreas auto
parts manufacturers
Koreas auto parts manufacturers are located in the Southwest Belt (Gwangju, Gunsan), West
Coast Belt (metropolitan area) and Southeast Belt (Ulsan).
Car manufacturing plants and primary parts suppliers (Production capacity, Number of companies)
Seoul
Parts suppliers: 38
Incheon
Incheon
Parts suppliers: 63
Sohari
Hwaseong
Pyeongtaek
Gyeonggi Province
Asan
Seosan
South Chungcheong
Province
Daejeon
Gunsan
Gunsan
North Jeolla Province
Jeonju
Gangwon Province
Parts suppliers: 5
North Chungcheong
Province
North Gyeongsang
Province
Daegu
South Gyeongsang
Province
Changwon
Parts suppliers: 27
Parts suppliers: 63
Parts suppliers: 51
Parts suppliers: 143
GM Daewoo: 210K cars
Parts suppliers: 76
Ulsan
Ulsan
Ulsan
Parts suppliers: 8
Busan
Busan
Gwangju
Gwangju
South Jeolla Province
Parts suppliers: 37
Daewoo Bus: 10K cars
Hyundai: 1.7mn cars
Southwest Belt
Auto parts makers in the southwestern area form a belt stretching from the GimjeIksanJeongeup
area to the GunsanWanju area, reaching Gwangju.
In North Jeolla Province, large complexes, including the Wanju Industrial Complex 3 (Hyundai
Motor Company), Iksan Industrial Complex 2 (Mando) and Gunsan Industrial Complex (GM
Korea), and parts subcontractors equipped with injection, press, die casting and precision
casting production technologies, are concentrated.
The North Jeolla Province area is also home to manufacturing clusters for passenger
automobiles, commercial vehicles, special vehicles, tractors and agricultural machines.
PROSPECTS AND
GEOGRAPHICAL
COMPETITIVE
ADVANTAGES
Koreas four auto majors Hyundai Motor Company, GM Korea, Tata Daewoo and Kia Motors
are located in the southwest area.
Gunsan, Jeonju and Gwangju of North Jeolla Province account for 17% of Koreas auto
production capacity, with an annual production capacity of 760,000 cars (mainly passenger
and commercial vehicles).
The region accounts for 93% of Koreas medium- and large-sized commercial automobile
production and for all of the medium- and large-sized trucks in Korea.
Kia Motors plants are located in Gwangju, and their annual production capacity is 600,000 cars
(mainly SUVs and CUVs).
South Jeolla Province provides a favorable environment for an auto industry belt because it is
home to auto parts and materials clusters where POSCO (Gwangyang Steelworks), Hyundai
Hysco and other companies in the Yeocheon Petrochemical Complex produce every essential
material, including metal, ceramic and chemicals (plastic).
14
As the clusters main focus is on manufacturing and production, its R&D innovation network is
rather weak.
The West Coast Auto Industry Belt has been formed in and around Gyeonggi and South
Chungcheong Provinces.
Local auto parts makers, including Hyundai Mobis (Giheung), Mando (Giheung) and Hyundai
Wia (Hwaseong), and globally leading auto parts companies such as Bosch (Germany, Yongin),
Siemens (Germany, Icheon) and Delphi (USA, Giheung) are located in Gyeonggi Province.
The province also accommodates Namyang Research Center of the Hyundai Kia Automotive
Group, the research centers and plants of other major auto parts makers and three of Koreas
six proving grounds located in the Hyundai Namyang Research Center, Kia Joam Research
Center and Korea Transportation Safety Authority Hwaseong Research Center.
Competitiveness of the
auto parts
industry
Quality competitiveness
Technological competitiveness
Japan
Korea
China
Japan
Korea
China
Japan
Korea
China
2012
100
84.2
72.0
100
93.5
74.9
100
91.3
73.9
2004
100
87.5
72.8
100
91.6
73.9
100
87.4
67.0
The quality competitiveness of domestic auto parts makers is rapidly improving, narrowing the
gap with Japan while widening the gap with China.
Koreas quality competitiveness increased from 91.6 in 2004 to 93.5 in 2012 while Chinese auto
parts makers achieved a small increase, from 73.9 to 74.9
This is due to improvements in various areas, including the skill level of workers, production
facility, the level of efficiency in production processing, quality of parts and part design.
As for technological competitiveness, domestic auto parts makers are narrowing their gap with
Japanese counterparts, but they are rapidly being chased by Chinese auto part manufacturers.
Koreas technological competitiveness went up by 3.9 percentage points, from 87.4 in 2004 to
91.3 in 2012, while Chinas technological competitiveness saw a 6.9 percentage point increase,
from 67.0 to 73.9, during the same period.
Southeast Belt
The Ulsan auto cluster is led by conglomerates. It comprises Hyundai Motor and parts
conglomerates that supply parts to Hyundai Motor.
Along with experience and expertise operating auto production facilities, the companies in
the cluster are well equipped with transportation infrastructure, logistics systems and a skilled
labor force.
Although the domestic auto parts industry is more price competitive than that of Japan, the
price gap between Korean and Chinese products is widening.
Korea is narrowing its price competitiveness gap with Japan, recording 87.5% compared to
Japans 100%. However, the difference in price competitiveness between Korea and China has
widened from 12.2% to 14.7%.
Price competitiveness
In Chungcheong Province, auto makers are clustered in the southern part, and the province
ranks third for production capacity in Korea, following Ulsan and Gyeonggi Province in terms of
finished-automobile plants.
78 primary subcontractors, including three major auto parts makers Hyundai Mobis (Asan),
Daihan Climate Control (Cheonan) and Hyundai Powertech (Seosan) are concentrated in the
Cheonan, Asan and Dangjin areas.
The North Chungcheong area is home to Hyundai Autonet and other primary sub-contractors
for automotive electronics. Nine primary sub-contractors, including Halla Visteon Climate
Control Corp, are located in the Daejeon area.
The auto industry in the Southeast Belt is the largest, accounting for 29% of the total domestic
manufacturing companies and 36.7% of the total yield.
Although the three areas in the Southeast Belt the Ulsan, Busan, South Gyeongsang Province
areas maintain close work relations, the Ulsan and South Gyeongsang Province areas in
particular have high self-supply rates.
This is mainly due to the fact that Koreas major finished-automobile manufacturers Hyundai
Motor (the largest domestic automaker), Renault Samsung and GM Korea are all located in
the regions.
15
Promising
regions and
industrial
fields
Promising regions
The Korean government is promoting a synergy effect between the enhancement of regional
innovation capacity and specialization development, through providing support for industryacademia-research institute projects tailored to each regions needs.
For example, the government is promoting convergence parts that use materials in North
Gyeongsang Province; intelligent auto parts in Daegu; green electric vehicle parts in Ulsan; and
untapped areas in the unit parts field, such as quality certification in Busan.
16
In addition, the government is providing specialized support to the green automobile design
and convenience system fields in South Chungcheong Province; clean commercial vehicle parts
in North Jeolla Province; clean diesel car parts in Gwangju; and high-end car-tuning parts in
connection with the F1 circuit in South Jeolla Provice.
Regional clusters for automotive parts R&D
Gyeonggi
Province
South
Automotive interior /
Chungcheong
electronic parts
Province
North Jeolla
Province
Green car
commercialization
Gwangju
Gwangju
Automotive production
base with 1 mn car
capacity
South Jeolla
Province
MICRO Mobility
South Jeolla
Province
South Jeolla
Province
Automotive performance
tuning service base
Daegu
Smart car
commercialization
Daegu
Daegu
North
Gyeongsang
Province
Convergence automotive
parts
Ulsan
EV components
Busan
17
Development plans
Motor
Develop motor miniaturization design technologies to enhance power density and efficiency
Develop parts, including pumps and those for the heating system, to enhance the performance of EV
air conditioning systems
Weight reduction
Develop lightening technologies through optimal design for auto bodies and convenience systems
Battery
Develop battery technologies to increase the one-charge driving range from 140 km to 200 km and
reduce the slow charging time from 6 hours to 3 hours
Charger
Develop technologies to improve the efficiency of the power train system, which performs as an
intermediate control between a combustion system and a motor ((P)HEV)
Stack
Achieve 100% local production of core clean diesel parts, including common rail core parts and new
material filters for after-treatment system (CDV)
With an increasing number of required auto parts due to strengthened transport safety
regulations, the outlook for such parts is also promising.
A list of parts, including AEB, eCall (Emergency Call), rear view, FCWS and LDWS, is expected to
become mandatory automobile equipment. Small compact cars will be required to have parts
that are currently required only for large vehicles.
Although Koreas auto parts industry has competitive module and system unit part
technologies, it strives to domestically produce core parts and unit parts, including sensors
and auto semiconductors, respectively.
Development efforts to enhance the efficiency of existing combustion engine vehicles are well
underway. Parts related to multi-range transmissions and high-performance small engines are
thus expected to have bright prospects.
Related technologies include a before / after treatment system for combustion engine vehicles,
alternative fuel vehicle technologies, recycling technologies, high-performance engine
technologies and miniaturization and weight reduction technologies.
The outlook is bright for the following parts: Core parts including turbo chargers, which are
necessary for engine downsizing to improve efficiency, and those for direct injection systems;
and parts related to multi-range transmissions to enhance fuel efficiency.
As the price competitiveness and quality of Korean auto parts are well recognized in the global
market, parts with great export potential are also considered promising.
As automobile chassis parts, which are parts for the brake system, suspension system and
steering system, are relatively small and light compared to other parts, chassis parts exports
can be expanded.
The exports of engine and transmission parts are highly likely to grow, as they are also small,
light and equipped with highly competitive domestic technologies.
18
19
R&D efforts are significantly important for automotive electronics parts, as the production of
parts is completed only after fine adjustments for example, adjustments on power currents
on each model of vehicles, which takes place after the completion of product development.
Although the competitiveness of domestic parts makers in this field is rather weak now, the
countrys IT competitiveness can enhance the growth of the field.
Outlook for
market entry
The production trend of Korean finished-automobile manufacturers from 2004 to 2013 shows a
drastic increase, from 3.178 million cars (2003) to 4.562 million cars (2012).
Although there have been ups and downs due to the economic recession or strikes, the overall
production trend is on a steep rise.
The current production capacity is reaching its limit due to the long absence of new
production facility establishments, but the global reputation of the domestic auto industry is
being solidified with increased sales through overseas production.
Spurred by the growth of the downstream industry, the domestic auto parts industry is showing
steady growth in terms of revenue.
The domestic auto parts industry is expected to be on the same growth track as its
downstream industry, the automotive industry.
The exterior growth trend is forecast to continue thanks to existing growth contributors
including the increased unit price of sales per vehicle due to improved specifications and
sophistication (OEM revenue), the increased number of domestic vehicles in use (A/S revenue),
the expanded overseas production of domestic companies and the global parts sourcing of
overseas finished-auto makers.
A strong global sourcing trend has translated into the increased deliveries of Korean parts
makers, which are well equipped with high price and quality competitiveness, to global auto
makers.
Domestic parts makers will enjoy great opportunities to participate in the global sourcing
trend, especially with overseas auto makers that are based in Korea.
As domestic auto production is stagnant, with overseas finished-automobile production
exceeding 50% of the total production, the importance of the parts industry in Koreas overall
auto industry will grow.
Expanded overseas production is expected to negatively affect Koreas auto exports. However,
increased parts exports to overseas production facilities run by domestic companies and
global automobile manufacturers are expected to offset such loss.
GOVERNMENT
POLICIES AND
REGULATIONS
20
Government
policies
R&D project
EV
Government
support
Government
support
Category
R&D project
Development of EV
finished-vehicles
KRW 20.5 billion
(2010 -)
Hybrid vehicles
Local production of
power train systems KRW 16 billion
and parts
Hydrogen fuel
vehicle
Development of
systems and parts
(2006 -)
Clean diesel
vehicles
Development of
intake & exhaust
system parts
Plug-in hybrid
vehicle
Local production of
KRW 19.6 billion
parts (2008 -)
KRW 14 billion
In order to lay out the foundation for mass-production, the government has set support
measures for the development of eight green vehicle core parts, establishment of facilities,
market creation and supply base expansion.
The auto industry invested KRW 1.3 trillion from 2006 to 2010 and plans to invest KRW 3.1
trillion from 2011 to 2015.
As for smart vehicles, the government focuses on the creation of new auto-IT industries through
exploring and applying innovative auto-IT technologies while enhancing the competitiveness of
IT SMEs.
In order to support the establishment of an industrial environment for auto-IT convergence,
the government aims to provide one-stop services to help IT companies enter the auto market
through the establishment of a VIC New Biz Center.
A business R&D model, R&BD, has been introduced to minimize market entrance failure and
encourage companies to explore creative business models.
The government provides support for technology development based on policy demand,
private demand, technology roadmaps and patent-related technologies, through exploring
new tasks in the governments project to develop industrial source technologies for IT
convergence.
21
22
COST
23
04 COST
The chart below shows production cost comparisons between Korea and other countries with a
strong automobile industry. Koreas raw material costs and labor costs are estimated at 68.6 and
4.7, respectively, out of 100.
Koreas auto labor costs have been on the rise, but the countrys absolute level compared to
those of advanced countries, including Japan, Germany and the United States, remains low.
Costs comparison of major auto countries
Korea
Japan
Germany
Mexico
USA
100.0
100.0
100.0
100.0
100.0
68.6
67.8
71.0
59.9
77.6
Fuel costs
0.5
1.0
0.9
0.8
0.5
Outsourcing costs
3.2
3.2
3.2
3.2
3.2
Labor costs
4.7
10.1
13.9
3.3
11.0
Depreciation costs
5.5
4.8
3.7
11.1
4.5
Sales
Raw material costs
Compared to Japan, Korea is more actively expanding its FTA network, especially with major
auto markets including the United States, European Union, Canada and Australia. Costs saved
from tariff reduction by FTAs enhance Koreas raw material cost competitiveness.
24
05 SUCCESS CASE
SUCCESS CASE
Overview
25
Honeywell entered the Korean market in 1989 as Honeywell Koreas Turbo Operations
established an assembly facility in the Sihwa Industrial Complex in Ansan, Gyeonggi Province.
Honeywell Korea is a foreign-invested corporation based on a full capital investment of USD 3
million by Honeywell. Following the initial establishment of the assembly facility, Honeywell
Korea is currently operating a 3,305-square meter-production facility in the same complex
after relocating and expanding three times.
Honeywell Koreas flagship turbocharger brand is Garrett, which has a dominant market
presence in Korea, with more than 60% of the market share.
The companys major partners are finished-automobile makers including Hyundai-Kia,
Ssangyong and GM Korea. OEM sales account for 90% of the total sales, while the aftermarket
share, including engine tuning, represents about 10%.
Honeywell Turbo Operations run 12 production facilities around the world, including one in
Shanghai.
As for turbochargers, which is Honeywells major focus, the domestic market size is 1.7 million
turbos a year, and Honeywell Korea accounts for more than 50% of the market.
Honeywell Koreas production facility is the 5th largest of Honeywells 12 facilities. Honeywell
evaluates that Koreas manufacturing industry is still strong in advanced parts, including IT and
automobiles. Honeywell reinvests all the profits incurred in Korea, into the Korean market.
Koreas turbocharger market is rapidly expanding, especially since 2005, when the government
started to impose environment-related regulations on diesel vehicles.
The advanced parts business, including IT and auto parts, is not too sensitive to labor costs.
Honeywells Korean facility has been evaluated to outperform the companys Chinese
production facility in terms of sales per capita and productivity.
The turbocharger technology is a core technology for engine downsizing to enhance fuel
efficiency and requires advanced technologies.
As of 2013, diesel vehicles take up 32.7% of the domestic passenger vehicle market, a 17%
increase from the 2008 figure. The market has been growing at 19.1% every year on average
for the past five years, showing great growth potential.
Domestic companies are currently developing related technologies with the aim of massproducing turbochargers after 2016. Thus, the market is expected to grow continuously.
In addition, the aftermarket, including engine tuning, is expected to grow, spurred by the
Korean governments measures to promote the tuning industry.
26
Related
agencies
Name
Website
Major role
Korea Automotive
Technology Institute
(KATECH)
www.katech.re.kr
www.kapkorea.org
As a private, autonomous public corporation for the development of the auto parts industry,
KAP provides support to auto parts companies with regard to technology-related difficulties, the establishment of a quality system and business management, along with offering
information about the overall auto industry.
www.kaica.or.kr
As a representative association of the auto parts industry, KAICA supports auto parts
companies through proposals to the government and finds export channels for them to
promote the global market entrance of domestic auto parts companies.
www.kama.or.kr
In order to enhance business efficiency to facilitate the countrys auto industry, KAMAs
work includes nurturing the auto industry; responding to trade-related issues; proposing
suggestions for safety-related policies and regulations; and publishing auto-related studies and statistics.
Korea Automobile
Manufacturing Association
(KAMA)
Major parts
companies
by function
(combustion
engine
vehicles)
Function
Category
Major parts
Major companies
Finished-car makers
Engine
Cylinder heads /
blocks
Daedong Metals Co., Ltd., Doosan Infracore Co., Ltd., Yeong Hwa
Metal Co., Ltd.
Pistons
Dong Yang Piston Co., Ltd., Dongsuh Industrial Co., Ltd., Korea
Dongdo Industry Co., Ltd.
Crankshafts,
connecting rods
Daechang Forging Co., Ltd., Korea Flange Co., Ltd., Sammi Metal
Products Co., Ltd.
Camshafts
Bellows
Power
Generation
Equipment
Cooling system
Fuel system
RELATED
COMPANIES AND
ASSOCIATIONS
27
Intake
& exhaust system
Cooler modules
Radiators,
condensers
Fan motors
Fan shrouds
Fuel tanks
Oil pans
Catalytic converters
Sejong Industrial Co., Ltd., Daegi Faurecia, Daeji Metal Co., Ltd.
Throttle bodies
Transmission
Power Train
Equipment
Other
Transmission
Electronics
Gears, shafts
Oil pumps
Propeller shafts
Clutches / parts
28
Function
Category
Panels, frames
Bumpers
Car
body
Door modules
Major parts
Major companies
Function
Battery
Sejong Industrial Co., Ltd., Hwa Shin Co., Ltd., S&T Motiv, Austem
Co., Ltd.
Wiring
Brake system
Connectors
Motor
Sensor
Lamps
Control units
BCU, TCU
Door locks
Window regulators
Axle assembly
Axle shafts
Korea Flange Co., Ltd., Hanil Forging Co., Ltd., Daeil Industrial Co.,
Ltd.
Bearings
Brake assembly
Suspension system
Steering system
Cockpit modules
Cockpit modules
Interior &
Exterior
System
Electricity
Exterior
Major green
vehicle parts
companies by
function
Module
Driving parts
Energy storage
parts
Parts
Company
Motors
Inverters
Exclusive engines
Charging system
Shock absorbers
High-voltage harnesses
Stabilizer bars
Semiconductors
Converters
Control arms
Circuit breakers
Film capacitors
Steering knuckles
Electric brakes
Transmissions
Smart seats
Daewon Kangup Co., Ltd., Das Corp., Daewon Sanup Co., Ltd., Hyundai Dymos, Hail E-Hwa
Air conditioning /
cooling system
Halla Visteon Climate Control Corp, Doowon Climate Control Co., Ltd., Donghwan Ind.
Corp., etc.
Electric heaters
Sensors
Electric pumps
Motors
Hyundai Mobis, Hyundai Heavy Industries Co., Ltd., Shidae Electric Co., Ltd., Justek Inc., etc.
Inverters
Hyundai Mobis, LSIS Co., Ltd., Young Hwa Tech, Delphi, etc.
Reducers
Chargers
LSIS Co., Ltd., Mando Co., Ltd., Hyundai Mobis, Delphi, Young Hwa Tech Co., Ltd., etc.
High-voltage electronics
Yura Corporation, Kyungshin Corp., LSIS Co., Ltd., Woory Industrial Company, Korea Electric
Terminal Co., Young Hwa Tech Co., Ltd., MJC Korea
Controllers
LDC
Platforms
Finished-auto makers
Brakes
Halla Visteon Climate Control Corporation, Doowon Climate Control Co., Ltd., Hyundai
Mobis, Dai-han Calsonic Co., Ltd., etc.
Design parts
Hanil E-Hwa, Dukyang Ind., Co., Ltd., Das Corp., Hyundai Dymos, etc.
Crash pads
Hyundai Mobis, Dukyang Ind., Co., Ltd., Goryeo Industry Co., Ltd.
Combination meters
Airbags
Chassis
Major companies
INFAC Corporation, Kyung Chang Industrial Co., Ltd., Daedong
System
Door frames
Brake boosters
Major parts
Cables
Chassis modules
Axles
Category
29
Electronics
HYBRID
Body /
chassis parts
Common core
parts
Driving parts
Consoles, ashtrays,
handles and etc.
Wiper modules
Sunroof modules
Energy storage
EV
Electronics /
control (IT)
Body / chassis
Common core
parts
Invest Korea's
Global Network
Supporting foreign investors worldwide
Headquarters
Address 13, Heolleung-no, Seocho-gu, Seoul, Republic of Korea
Tel (82-2) 1600-7119 Fax (82-2) 3460-7920
E-mail ikonline@kotra.or.kr
Homepage www.investkorea.org
NORTH AMERICA
New York, USA
Tel (212) 826-0900
E-mail kotrany@hotmail.com
Los Angeles, USA
Tel (323) 954-9500
E-mail info@kotrala.com
Chicago, USA
Tel (312) 644-4323
E-mail info@kotrachicago.com
Dallas, USA
Tel (972) 243-9300
E-mail joongik@kotradallas.com
Washington D.C., USA
Tel (202) 857-7919
E-mail washington@kotra.or.kr
Silicon Valley, USA
Tel (408) 432-5000
E-mail info@kotrasv.org
Detroit, USA
Tel (248) 619-1601
E-mail detroit@kotradtt.org
Vancouver, Canada
Tel (604) 683-1820
E-mail ktc@kotrayvr.com
Toronto, Canada
Tel (416) 368-3399
E-mail info@kotra.ca
EUROPE
Frankfurt, Germany
Tel (49-69) 2429-920/9
E-mail frankfurt@kotra.or.kr
Hamburg, Germany
Tel (49-40) 3405-740
E-mail info@kotra.de
Munich, Germany
Tel (49-89) 2424-2630
E-mail munich@kotra.or.kr
Paris, France
Tel (33-1) 5535-8888
E-mail paris@kotra.or.kr
Moscow, Russia
Tel (7-495) 258-1627-8
E-mail info@kotra.ru
London, U.K.
Tel (44-20) 7520-5300
E-mail kotra@kotra.co.uk
Brussels, Belgium
Tel (32-2) 205-0088
E-mail kotrabru@kotra.or.kr
Milan, Italy
Tel (39-02) 79-5813
E-mail kotramil@kotra.it
Zurich, Switzerland
Tel (41-44) 202-1232
E-mail ktc@kotra.ch
Stockholm, Sweden
Tel (46-8) 30-8090
E-mail stockholm@kotra.nu
Copenhagen, Denmark
Tel (45) 3347-7221
E-mail info@kotra.dk
Amsterdam, Netherlands
Tel (31-20) 754-6900
E-mail info@koreatradecenter.nl
Vienna, Austria
Tel (43-1) 586-3876
E-mail kotravie@kotra.at
Madrid, Spain
Tel (34-91) 556-6241
E-mail madridktc@kotra.or.kr
Hangzhou, China
Tel (86-571) 8110-3099
E-mail ljl88@kotra.or.kr
Nanjing, China
Tel (86-025) 8328-8991
E-mail bonkyung@kotra.or.kr
Hong Kong, China
Tel (852) 2545-9500
E-mail kotra5@kotra.org.hk
www.Invest Korea.org
Taipei, Taiwan
Tel (886-2) 2725-2324
E-mail kotra.tpe@msa.hinet.net
Kuala Lumpur, Malaysia
Tel (60-3) 2117-7100
E-mail gunwony@kotra.or.kr
Jakarta, Indonesia
Tel (62-21) 574-1522
E-mail jakarta@kotra.or.kr
Mumbai, India
Tel (91-22) 4925-5400
E-mail ktcmumbai@kotra.or.kr
MIDDLE EAST
You want to do business in Korea but dont know where to start. Where should you turn? Invest Korea.
As the national investment promotion organization of Korea, Invest Korea helps foreign companies
enter the Korean market. It offers a free one-stop service that includes a wide range of pre-investment,
investment and post-investment support, with offices located around the world.
Contact the Invest Korea office nearest you.
KOREA,
Where Success Knows No Limits
www.investkorea.org
13, Heolleung-no, Seocho-gu, Seoul, Republic of Korea (137-749) Tel (82-2)1600-7119 Fax (82-2)3460-7920