South Korea’s auto industry is a major contributor to the economy of the nation, and the industry has been suffering as the trade spat with neighbor Japan has not settled and started affecting the manufacture and sales of the auto industry of the nation. The government has been pushing the auto sector to grow as 30 percent of the economy is dependent on the auto sector. There has been good growth, but there are some setbacks too.
Major exports are to the United States from Korea, which has fallen substantially, hurting the auto industry more than any other sector out there. South Korea’s trade excess on the United States which has been a major contributor to the economic growth has decreased nearly 7 percent since the two countries kicked off a revised free trade agreement earlier this year and the conditions do not seem to get better anytime soon as the world economy is slowing down. The improved FTA progressed into effect on Jan. 1 to reflect Washington’s demands in the auto sector, which had been growing at the time, and there were no signs of an imminent crash and crisis in the sector. The original agreement kicked off in 2012 and has been revised and continued ever since to benefit the nations involved.
With this fall, the Korean nation has little to worry as the expansion of the Korean auto is headed for a home run, and we think they are going to knock it right out of the stadium.
Tags : auto, south korea, automobile, japan, government, FTA,