2025-12-08
South Korea’s Ministry of Environment is continuing the “Electric Motorcycle Subsidy Program and Battery Swap Charging Facility Support Program,” which was launched in spring 2025. Its effects appear to be gradually emerging in the market.
2025-11-17
In South Korea, the government-led ‘Smart Safety Equipment Support Project’ is encouraging the use of electric forklifts and standardized safety equipment. According to the official notice, electric forklifts weighing less than 3 tons must be fitted with an overload prevention system, seat belts, warning devices, emergency stop buttons and anti-fall valves.
The subsidy program enables companies to introduce electric forklifts at a low cost, putting pressure on them to replace their diesel models with electric ones. The adoption of ‘unmanned forklifts’ and ‘remote/automated transport’ within companies is also progressing, with the smart transformation of logistics and factories stimulating market demand.
Consequently, the combination of safety standards, electrification and automation is establishing itself as the ‘standard direction for next-generation forklifts’ in South Korea.
Source: 엔세이프
PSR Analysis: The most distinctive feature of the Korean market is the government’s aggressive promotion of safety standards to near-mandatory levels, coupled with the rapid rate at which these standards are adopted as market norms. Furthermore, against a backdrop of labor shortages, an ageing population and frequent overloading accidents, companies are highly incentivized to invest in safety equipment and automation.
Korea’s unique strengths lie in its extensive IT infrastructure and smart factory adoption, as well as its advanced communication environments, making the transition from electrification to automation technically feasible. The concentration of major manufacturers in the automotive and electronics industries, coupled with high rates of 24-hour operation and indoor work, creates an ideal environment for electric forklifts, accelerating their adoption even further.
Conversely, weaknesses include the significant cost burden for SMEs (Small and Medium-sized Enterprises) and the limited diversity of manufacturers’ lineups, which is slower than in Europe, leading to slower adoption of electric motors in high-durability and large-capacity segments.
While safety requirements are clearly defined for overseas manufacturers, this also creates an ‘entry barrier’ where low-cost models that do not meet safety and IT equipment standards find it difficult to enter the market. Over the next two to three years, the progression from electrification to telematics standardization to partial automation (remote/unmanned) is expected to become more pronounced. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia
2025-10-19
The U.S. Department of Commerce has announced tariffs of up to 50% on 407 steel and aluminum derivative products from South Korea.
The department’s Bureau of Industry and Security said this measure would apply to hundreds of products, including wind turbines and their components, mobile cranes, bulldozers, railway vehicles, furniture, compressors and pumps.
2025-08-16
The South Korean government has reached an agreement with the United States regarding tariff negotiations. Mutual and automobile tariffs will be reduced to 15%, which is the same rate as those of Japan and the European Union (EU).
According to the Korea Trade and Investment Promotion Agency (KOTRA), automobiles are South Korea’s leading export to the United States. Exports to the United States account for over 50% of South Korea’s total automobile exports. The South Korean government prioritized reducing automobile tariffs and engaged in negotiations with the United States.
2025-04-20
Last month, South Korea’s Hyundai Motor Group announced that it will invest $21 billion in the U.S. over the next four years. In addition to investing $6 billion to build a steel mill in Louisiana, the company will increase its U.S. auto production capacity by 70% to 1.2 million vehicles per year at a cost of $9 billion
The $21 billion investment in the U.S. will be the largest ever made by the Hyundai Motor Group. The investment will be made between 2025 and 2028 and will cover a wide range of fields, including automobiles, steel, parts and energy.
2025-03-20
Kia is launching a new range of EVs that can be easily modified to meet different interior and design needs and will begin selling a mid-size van in Korea in July. The company is currently in talks with about 100 companies in the transportation and logistics industry. Although global EV sales are currently sluggish, Kia hopes to develop a new revenue stream by promoting the fact that the specifications of these vehicles can be changed to suit the needs of different industries.
“We have opened up a new paradigm with our customized EVs.” The CEO spoke with great enthusiasm at Kia’s EV Day event in Spain. The company unveiled the first production model of the “PV5,” a mid-size van that is the first in a series of independently developed EVs called “Platform Beyond Vehicle” (PBV).
2025-02-24
The financial results for the year ending December 2024 of the three major Korean battery manufacturers all showed a decrease in sales compared to the previous year due to the sluggish sales of EVs worldwide. Unable to recoup the amount of upfront investment they had made in anticipation of the increasing shift to EVs, the companies are reviewing their plans for increased production.
SK ON has announced that it will delay the startup of its new U.S. plant, which was planned for 2025. LG Energy Solution, the largest company in South Korea, also reported a decline in both revenue and profit. Sales fell 24% and operating profit fell 73%. This is the first time since the company became an independent battery-focused subsidiary of the LG Group in 2020 that it has seen a decline in both sales and profits. Samsung SDI also saw a 23% drop in sales and a 76% drop in operating profit.
2024-12-13
The declaration of martial law by South Korean President Yoon Suk Yeol has sparked a series of strikes by labor unions. The unions, which are the support base for the opposition parties calling for the president’s resignation, are mobilizing up to 200,000 people. Major industries such as the automobile industry are already affected.
The strike was led by the umbrella organization, the National Metal Workers’ Union. In addition to Hyundai Motor, which is a member of the union, more than 70,000 workers from other companies that support the Korean auto industry, such as Kia Motors, GM Korea and Hyundai Mobis, an auto parts manufacturer, have joined the strike.
2024-08-27
Hyundai Motor has begun the initial public offering (IPO) process for its Indian subsidiary to further develop the company. The IPO is expected to raise $3 billion, making it the largest IPO ever in India. Over the past 20 years, Hyundai Motor has exported 3.6 million Indian-made passenger cars to more than 150 countries, including emerging markets, making it the largest exporter among India-based automakers. India is now Hyundai Motor’s second largest market after North America, surpassing its home market of South Korea.
2024-05-25
Korea’s Hyundai Motor Group is going on the offensive with hybrid vehicles. Its subsidiary Kia plans to introduce HV models in nine of its main models, doubling its current sales volume to 800,000 units by 2028. Kia will temporarily review its investment focus on EVs, where competition is heating up globally, to flexibly respond to market trends.
In early April, Kia’s CEO showed signs of impatience at a business strategy meeting in Seoul, admitting that the EV market is slowing down and pushing back the goal of surpassing sales of 1 million EV units by 2026 to 2027.
At the same time, he announced the expansion of HVs: by 2028, he will introduce HVs in nine major models worldwide, increasing HV sales from 372,000 units (12% of the total) in 2024 to 800,000 units (19%).
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