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Method to Nurture Strong Medium-sized Automotive Parts Enterprises And To Strengthen Their Competitiveness

Author Lee Hang- Gu Date 2013.04.25 Issue No 556
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As the growth of the domestic strong medium-sized automobile parts enterprises is accelerating, the ratio of the automobile parts enterprises is estimated to hover around 20% among the strong medium-sized enterprises which recorded the total sales of more than 100 billion won in 2011.

- Between 2008 and 2010, the number of the strong medium-sized automobile parts enterprises which recorded more than 150 billion won was 85 while the number of the candidate automobile parts enterprises   which achieved more than 100 billion won and less than 150 billion won was 56. 

 

The strong medium-sized automobile parts enterprises have maintained the sizable growth by expanding its export of the parts for overseas assembly of the domestic automobile manufacturing companies and for foreign automobile manufacturing enterprises.

- Unlike the up-and downs of the investment on R&D made by domestic strong medium-sized companies despite the increase in their size, the size and the investment on R&D of the strong medium-sized automobile parts industries are on the rise at the same time.

 

 

 

As the domestic automobile parts enterprises are losing their ground due to the integration of the automobile manufacturing companies, they strive to enlarge their size through the specialization and internationalization

- However, the number of the domestic automobile parts enterprises listed in the 100 largest global automobile part corporations as of 2011 was merely 4, most of which were even the subsidiaries or affiliates of the manufacturing enterprises 

- Not only that, the R&D intensity of domestic automobile industry is lower than those of Japan and the E.U.

 

In this regard, Korean government should expand the support for the R&D of the small and medium-sized and strong medium sized automobile parts companies by assessing the change in the paradigm of technology, financial soundness, history of the investment on R&D and business transformation capacity, and should support their export by stabilizing exchange rate and establishing the comprehensive information system for overseas market.

- Moreover, it is necessary to strengthen the capacity of the automobile-related support centers which are widely located across the nation, by responding to the convergence of the technology·product industries, and to build up the system to provide the comprehensive support for the innovation of product·processing, manpower training and business service through the association among the centers.  

-  To this end, the association and cooperation among the relevant policies, ministries and department should be preceded.