South Korea’s auto parts industry achieved record-breaking exports to the United States in 2024, reaching $8.22 billion, up from $8.08 billion the previous year, according to the Korea Auto Industries Coop. Association. This steady growth highlights the increasing global demand for South Korean automotive components, even as the industry faces potential challenges from U.S. trade policies.
The United States accounted for 36.5% of South Korea’s total $22.55 billion in auto parts exports, making it the largest market. The European Union followed at 17.3%, with Mexico (9.5%) and China (6.4%) also contributing to the country’s global trade presence.
However, uncertainty looms over future exports due to the potential reintroduction of 25% tariffs on auto imports by the U.S., a policy previously pushed by the Trump administration. Industry officials have expressed concerns about the impact of such tariffs, given that auto parts are directly linked to the production and pricing of completed vehicles.
Despite these concerns, South Korea’s overall auto exports surged to $70.78 billion, with the U.S. accounting for nearly half (49.1%) of the shipments. Some analysts suggest that rising tensions between the U.S. and China may work in South Korea’s favor. With Washington imposing a 60% uniform tax on Chinese auto parts, South Korean manufacturers could gain market share by filling the void left by Chinese suppliers.
According to Kim Kyung-yoo, a senior researcher at the Korea Institute for Industrial Economics and Trade, “With heavy tariffs on Chinese auto parts, Korean companies stand to benefit as U.S. buyers seek alternative suppliers.”
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