Ministry of Economy and Finance holds first 'corporate vitality TF' meeting; parts industry transition support also requested

Participants discuss K-shaped polarization between large and small firms, Greater Seoul area and regions

Hyundai Motor's Ioniq 9 [The Herald Business DB]
Hyundai Motor's Ioniq 9 [The Herald Business DB]

The government plans to announce a package of measures to strengthen the competitiveness of the electric vehicle industry this month.

Business groups have urged the government to extend domestic production tax credits to electric vehicles and expand support for auto parts makers transitioning to EV-focused supply chains.

The Ministry of Economy and Finance held the first meeting of its "corporate vitality task force" at Korea Development Bank on Thursday, chaired by First Vice Minister Kwon Dae-young. Attendees included representatives from six major business federations — among them the Korea Chamber of Commerce and Industry, the Federation of Korean Industries and the Korea Enterprises Federation — as well as the Korea Automobile Manufacturers Association, public and private research institutions, and state-run bank research units. The Ministry of Trade, Industry and Resources and the Financial Services Commission also participated.

Participants said policy support for corporate technology innovation and investment must keep pace as the global auto industry restructures around electric vehicles and autonomous driving. They called for domestic production tax credits to be extended to EVs as a way to encourage local manufacturing of finished vehicles, and pressed for expanded transition support to help parts suppliers adapt to a supply chain increasingly centered on electric vehicles.

"Swift adaptation and technological innovation by our companies are more important than ever," First Vice Minister Kwon said. "We will listen carefully to a wide range of views and actively incorporate them into the electric vehicle industry competitiveness plan to be announced in November."

The meeting also took up "K-shaped polarization" — diverging growth trajectories across companies, industries and regions. Participants agreed that active policy responses are needed, warning that productivity gaps could widen further as businesses undergo AI transformation. Kwon said the government must build an industrial ecosystem in which large enterprises, small and medium-sized enterprises, advanced industries, traditional industries, the Greater Seoul area and regional economies all grow together, adding that the gains from growth must translate into local industries and jobs.

The TF serves as the working-level group under a public-private consultative body on corporate innovation support launched in March under the deputy prime minister's chairmanship. The Ministry of Economy and Finance plans to use the TF to identify on-the-ground obstacles to corporate investment and innovation, and to discuss government support measures covering taxation, finance and regulation.


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