Amid the global shift towards next-generation mobility technologies, the government in South Korea has announced expanded financial support measures aimed at accelerating the development of the future mobility and autonomous driving vehicle industries, including a decision to provide 18 trillion won (US$ 12 million) in policy financing this year.

The Financial Services Commission and the Ministry of Trade, Industry and Energy held the "public-private joint meeting on the transition to future cars" and the "launch ceremony of the future car parts industry consultative body" at the Korea Automotive Industry Cooperative on May 14th, where plans related to the future mobility industry were discussed.

The meeting was organised to establish a support system for South Korea's transition towards a future mobility ecosystem. The Financial Services Commission also decided to supply a total of 15 trillion won to the mobility sector over the next five years through the Public Growth Fund. An official from the Financial Services Commission said, "In the process of the automobile industry responding to future mobility trends, demand for facility and research and development (R&D) investment is expanding, and the financial burden on small and medium-sized parts companies continues to grow," while explaining the background to the financial support measures.

This year, 9.7 trillion won will be provided through policy financing for the auto parts industry, while 8.3 trillion won will be allocated to the future mobility and autonomous driving vehicle sectors, taking the total to 18 trillion won. The newly launched public-private joint future car parts industry consultative body plans to identify challenges faced by the parts industry across finance, research and development (R&D), exports and workforce development, while supporting the industry's transition.

Kwon Dae-young said, "The automobile industry is now evolving into a convergence-based high-tech industry and a total national endeavour," adding, "Coordination with related ministries will continue to ensure that R&D, infrastructure investment and financial support are organically connected."

The consultative body consists of 18 institutions, including the Korea Institute for Advancement of Technology, Korea Trade Insurance Corporation, Korea Trade-Investment Promotion Agency (KOTRA), and the Korea SMEs and Startups Agency (KOSME).