Rising star of Korea automobile independently developed road
Xinhua Seoul dispatches on 5 September Roundup: Korea automobile independently developed road
Xinhua Kyi Xinlong
Korea automotive industry started in the Assembly of foreign car, followed by the rapid development of autonomous development and implementation. This is due to government policies and financial support, more margin for Korea enterprises have learning and innovation.
Korea's first automobile enterprises was founded in 1944 December Kia Motor Company, but the auto industry really infancy or in the 1950s. After decades of development, the Korea automobile industry has become a global automotive industry's rising star, now its automobile output ranked fifth, the automobile industry in the national economy and export the proportion is more than 10 per cent.
Government support
From Korea automotive history can be seen, in every stage of development, strategic planning and policy to protect all play an important role, the Government always in automotive development process plays an important role in supporting and guiding.
From 1962 onwards, the Korea development for automobile industry promulgated a series of strategic enabling policies and regulations, affirmative- modern and Kia, etc. are of international significance of its own automobile brand. In 1962, the five-year plan for the automotive industry and the automotive industry protection act strictly limits the import of foreign car parts and components; 1974 the auto industry development planning; 1975 enacted the systematic development of the Act, by restructuring and the joint formation of modern Korea automobile manufacturers, Daewoo and Kia three automobile group. Modern company in 1991 to create 100% domestically produced cars Accent, Korea became capable of producing independent models.
To support the national automobile industry, Korea set the trade barriers restricting foreign automobile imports, so that national automobile enterprises from foreign enterprises competitive pressure, for example to encourage the use of domestically produced vehicles, on entering the automobile industry to restrict foreign investment, and so on. In addition, Korea through stringent technical standards as well as a consumption tax levying high, limit the use of imported cars.
For a long time, the overseas market on Korea automobile impression is inexpensive, quality is not high. To enhance the image of the Korea automobile, Korea Government adopted a series of measures. First, the Government of Korea to the automotive research and development project to provide large amounts of capital investment amount per year or about its 12 per cent of the total amount of investment. Secondly, to improve product quality, Korea Government support for the auto parts business acquisitions and mergers, attract foreign advanced auto parts companies to Korea plant, establish the level of large parts of the world.
Familiar with Korea automobile industry analysts said the Government supporting policy development for Korea automotive delivers powerful auxiliary thrust, but also has some negative effects. For example, the Government, through the production license management and restrictions on competition, and other ways to let cheqi bigger and stronger, and this not only reduces the competitiveness of enterprises, also affects the overall competitiveness of Korea automobile industry. In addition, government restrictions on foreign investment measures although helps Korea formed independent complete automotive system, but also led to Korea automobile industry lost in global automobile production system for effective collaboration opportunities.