Geopolitics

The ecosystem of parts suppliers that has supported South Korea’s automotive industry is rapidly collapsing due to structural crises. The automotive parts sector comprises first-tier suppliers, which assemble large modules for automakers, and second- and third-tier suppliers, which process basic components. The current crisis transcends mere price competition. The industry system itself is shaking under the dual pressures of the "electric vehicle" paradigm shift and the overwhelming competitiveness of Chinese automakers, who leverage "unmanned factories."