Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held an automobile industry roundtable on August 13, 2026, at the Korea Automobile & Mobility Association (KAMA), with Park Dong-il, Deputy Minister for Industrial Policy at MOTIR, in attendance. Participants included representatives of four automakers—Hyundai Motor, GM Korea, KG Mobility, and Renault Korea—and four industry and research organizations: KAMA; the Korea Auto Industries Cooperative Association (KAICA); the Korea Automotive Technology Institute (KATECH); and the Korea Institute for Industrial Economics and Trade (KIET). They discussed key issues, including automobile industry trends in July and the outlook for the second half of 2026, the transition to future vehicles, and how to foster mutually beneficial cooperation across the industry ecosystem.

Automobile Industry Trends in July

Korea’s automobile exports rose 7.0 percent year-on-year to USD 6.24 billion in July 2026, the highest July figure on record. Domestic sales and production also increased 0.5 percent and 11.3 percent, respectively, to 139,000 and 352,000 units.

Eco-friendly vehicles led export growth, with their export value rising 25.5 percent year-on-year to $2.59 billion. Exports of electric and hydrogen vehicles increased 31.9 percent to $0.94 billion, while hybrid vehicle exports rose 22.2 percent to $1.65 billion. By contrast, exports of internal combustion engine vehicles fell 3.1 percent to $3.65 billion.

By region, export growth was led by key markets, with North America up 18.0 percent year-on-year to $3.25 billion and the European Union up 23.5 percent to $0.88 billion. The increase appears to reflect more working days after major automakers moved their annual summer shutdowns from July in 2025 to August in 2026, along with solid global demand for eco-friendly vehicles and SUVs. Exports to the Middle East rose 12.7 percent to $0.43 billion, returning to year-on-year growth after eight months.

Domestic sales in July rose 0.5 percent year-on-year to 139,000 units. Demand for eco-friendly vehicles remained solid, with sales reaching 84,000 units, or approximately 60 percent of the total. Sales of electric vehicles rose 47.5 percent to 36,000 units.

Automobile production rose 11.3 percent year-on-year to 352,000 units, supported by additional working days after major automakers shifted their summer shutdowns.

Key Roundtable Discussions

Automakers called for policy support from the government, saying it is essential to maintain a stable domestic production base of at least 4 million vehicles a year to safeguard Korea’s automobile ecosystem as the rapid rise of foreign companies intensifies competition for survival in the global EV market. Participants also agreed that the parts industry needs to make an early transition to future vehicles in response to electrification and other changes reshaping the automobile industry, while building an ecosystem in which automakers and suppliers can grow together. Government and industry agreed to work together toward these goals.

Deputy Minister Park said, “The global automobile industry is being reshaped by the transition to future vehicles and other changes. At this critical time, the government, automakers, and parts suppliers must work as one team to overcome the challenges.”

He said MOTIR would remain in close contact with the industry, carefully monitor issues including production and export conditions, and provide hands-on support. He also asked automakers to strengthen labor-management communication and cooperation and take the lead in fostering mutually beneficial collaboration with parts suppliers as they shift their businesses toward future vehicles and undergo AI transformation (AX).