South Korea Announces US$2bn Emergency Support for Auto Sector
Moneylife Digital Team 09 April 2025
South Korea announced emergency support measures for its auto sector on Wednesday in response to the impact of US tariffs on the industry.
  
The South Korean government unveiled a US$2bn (billion) emergency funding package for the auto sector which has been severely affected by the US tariffs.
  
As part of the package, South Korea will reduce taxes on automobile purchases to 3.5% from the current 5% until June 2025. Additionally, the government will increase subsidies for electric vehicles, raising them to 30%-80% of the price discount, up from the current 20%-40%, with the subsidy period extended by six months until the end of this year.
  
The 25% levy on all auto imports into the US took effect last week and these new tariffs are expected to affect the South Korean automobile industry significantly.
 
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