Ministry of Trade Industry and Resources

Korea’s Prime Minister Kim Min-seok visited Kia’s Hwaseong plant on November 14 to commemorate the new EVO Plant facilities and chair the first Future Mobility Industry Strategy Dialogue. While the Korea–U.S. tariff agreement has lowered auto and parts tariffs to 15 percent and eased market uncertainty, the automotive industry continues to face major challenges, including intensifying global competition in AI-based autonomous driving, maintaining domestic manufacturing capabilities, achieving carbon neutrality, transforming the parts ecosystem, and diversifying export markets. To drive a new leap forward for Korea’s automotive sector, the government unveiled the K-Mobility Global Leadership Strategy with the following key elements:

1.    Overcoming U.S. Tariff Challenges – To ease exporters’ remaining burden despite tariff reduction, the government will expand policy finance to more than KRW 15 trillion in 2026 and apply tariff quotas to raw materials used for vehicle and parts production. Korea will also boost EV subsidies to KRW 936 billion in 2026 (up from KRW 715 billion in 2025) and launch a new financing program for transport operators adopting electric and hydrogen buses. 

2.    Establishing the K-Mobility Mother Factory – In response to global protectionism and Korean companies’ overseas market expansion, the government will strengthen policy support to maintain domestic production at more than 4 million vehicles and enhance manufacturing quality. It will also restructure the incentive framework for production, investment, and R&D in eco-friendly and advanced automotive components, provide up to KRW 1 million in additional EV transition incentives, and promote auto and parts workplace innovation through HTC-Bootcamp. The government also aims to transition 70 percent of internal combustion engine (ICE) parts companies into future mobility suppliers, designate 200 specialized parts companies by 2030, advance Industrial GX R&D, and foster 70,000 future mobility specialists by 2033.

3.    Readiness for the AI Autonomous Era – Korea will scale up autonomous vehicle R&D to close the technology gap with the U.S. and China by 2030, develop an E2E-AI autonomous driving model by 2027, and establish standard platforms for Software-Defined Vehicles (SDVs) and AI-Defined Vehicles (AIDVs). The government aims to mass-produce autonomous vehicles by 2028 and will finalize all related legal and institutional improvements by 2026. Korea will also establish a comprehensive AI mobility test complex to support real-world autonomous driving demonstrations in urban environments, develop guidelines for autonomous-driving data sharing, and prioritize regulatory improvements, such as permitting the use of original video data, easing temporary operation-zone restrictions, and expanding pilot zones.

4.    Expanding K-Future Mobility Globally – To accelerate global expansion, the government will strengthen market development across seven high-potential countries. Domestically, it will establish a KRW 50 billion future mobility industrial technology innovation fund and leverage the National Growth Fund. Korea will further enhance regional competitiveness through industry–academia–research clusters, supporting the global growth of its future mobility industry.