South Korea's auto sector is expected to face "considerable difficulties" when US import tariffs on cars announced by President Donald Trump take effect and the government plans an emergency response by April.
South Korea will also actively engage the US government to explore measures to minimise the negative impact on South Korea's auto companies and suppliers, Industry Minister Ahn Duk-geun told a meeting with industry officials on Thursday.
"Global uncertainties are growing but South Korean auto companies will not be fighting alone," Ahn said.
The government will consider financial assistance, investment support, and help with market diversification, he added.
The minister said parts suppliers are expected to be hit particularly hard.
Trump unveiled a 25 per cent tariff on imported vehicles, prompting criticism and threats of retaliation from countries affected by the move.
Shares in South Korea's Hyundai Motor shed more than 4 per cent and sister automaker Kia Corp fell more than 3 per cent after Trump's announcement of new tariffs.
Hyundai Motor shares are set to post their biggest daily drop since late October 2024.
Hyundai together with affiliate Kia is the world's third-largest automaker by sales.
In 2024, South Korea's exports of automobiles to the United States stood at $34.7 billion, accounting for 49 per cent of its total auto exports.
bd-pratidin/GR
