Lee Dong-seock, President of Hyundai Motor, said, "With the confirmation of a 15% tariff, many of the competitive advantages we had over countries like Japan and the European Union (EU) have disappeared," adding, "I am concerned that the competitiveness of about 5,000 partner companies supporting the automotive manufacturing industry may weaken in this regard."
The People Power Party visited the Hyundai Motor plant in Ulsan on the 6th to hold a meeting on tariff responses. Among those attending the meeting was Kim Jeong-jae, Chair of the Policy Committee of the People Power Party, along with around 10 opposition lawmakers. From Hyundai Motor, key executives, including Lee Dong-seock, were present.
During the opening remarks at the meeting, the president expressed the difficulties facing the automotive industry. He noted, "Aside from tariffs and geopolitical risks, I am also very concerned about Articles 2 and 3 of the Commercial Act and Labor Union Act (Yellow Envelope Law), as they could infringe upon aspects related to company management and even personnel rights, potentially causing confusion in labor relations."
He added, "Not only can there be serious problems in this labor relationship at Hyundai Motor, but also in many partner companies' labor relationships," suggesting, "Whether in the Commercial Act or the Labor Union Act Articles 2 and 3, in order to overcome this difficult situation, it seems that the government and the National Assembly need to play a role looking towards the future."
Kim Jeong-jae, the chair of the Policy Committee who presided over the meeting, pointed out, "The automotive industry, which previously had a competitive edge compared to Japan and the EU where a 2.5% tariff was imposed, now faces an environment of infinite competition," adding, "To make matters worse, anti-business laws like the Commercial Act and Labor Union Act are being passed one after another, which seems likely to stifle corporate activities."
Chairman Kim also proposed a promotion tax system targeting domestically produced vehicles as an alternative. The suggestion was to introduce a system that provides tax deductions for products produced in Korea to reduce the burden on the automotive industry. He remarked, "The amount that needs to be paid this time that has not been taxed before is about 6 trillion won. The impact of tariffs on parts companies, which are mostly small and medium-sized enterprises, is also very significant," adding, "There have been voices calling for support for promotion tax benefits for automobiles produced in Korea."