It is difficult to transition from ‘internal combustion engines to future cars’, but only 2.8% receives government support. “The golden time has passed.”

It has been pointed out that the golden time for the transition to future cars is passing due to the government’s lack of support for the transition to future cars.

Rep. Yang Hyang-ja (Hope of Korea), a member of the Trade, Industry, Energy, Small and Medium Venture Business Committee of the Korean Society of Dramatic Association, said in a non-economic field inquiry by the Budget and Settlement Special Committee on the 1st that among the 7,416 companies that have not prepared a plan for conversion to future vehicles, the number of companies that have converted to future vehicles in the past five years It was pointed out that only 209 companies benefited from the support project.

According to the Korea Automobile Research Institute, out of the 30,000 parts that go into internal combustion engine vehicles, about 11,000 and 6,900 engine parts are expected to disappear. It is estimated that from 2025, sales of domestic internal combustion engine vehicle parts companies will decline by more than 10%. However, only 18% of domestic parts companies produce parts related to future cars, such as electric vehicles, and 7,416 companies, or 73% of existing internal combustion engine parts companies, are unable to even come up with a plan to respond to future cars.

According to Rep. Yang, the Ministry of Trade, Industry and Energy (Ministry of Trade, Industry and Energy) executed 5.261 billion won in future vehicle conversion support projects last year. The Future Car Transition Support Project provides technical and consulting안전놀이터 support of up to 70 million won per company, and a total of 157 companies have been selected over the past two years. The Ministry of SMEs and Startups (hereinafter referred to as the Ministry of SMEs and Startups) also supports the transition of automobile parts companies to future vehicles through the ‘Business Transformation Support Project’, and 52 automobile parts companies have been selected over the past five years.

The problem is that among the 7,416 companies that have difficulty even making plans for conversion to future vehicles, only 209 companies, or 2.8%, have received business conversion support over the past five years. It was even revealed that the Ministry of Trade, Industry and Energy’s support program, which mainly provides consulting costs for companies converting to future vehicles, does not even know the current status of selected companies converting to future vehicles.

Representative Yang Hyang-ja said, “The golden time for the transition to future cars is passing, but the government is too passive.” He added, “In the reality that it costs about 1.3 billion won just to mass-produce one type of future car part, what will happen to our small and medium-sized parts companies if the government does not actively support it?” “Will you prepare for the future?” he criticized Minister of Trade, Industry and Energy Lee Chang-yang and Minister of SMEs and Startups Lee Young.

He then emphasized, “The ‘Future Car Act’, a grand plan to support future car parts companies, will soon be submitted to the Legislative and Judiciary Committee,” adding, “We will take the lead in passing the law so that we can fully support our small car parts companies in their transition to future cars.”

On June 20, 2021, Rep. Yang Hyang-ja was the first representative to propose the ‘Future Car Industry Act’, which includes support for the conversion of future car parts companies and training of future car experts. The ‘Future Car Act’ has passed the full meeting of the Industry and Energy Committee and is about to be reviewed by the Legislative and Judiciary Committee.

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