Why are Japanese auto parts makers going bankrupt one after another and South Korea still zero? = Korean Internet “You should face the reality”
On December 15, 2020, the Korean and Seoul economies said, “There are 200 Japanese auto parts makers that went bankrupt due to the spread of the new coronavirus infection, but South Korea is still fighting relatively well with 0 companies.” I reported.
According to the article, “As of June this year, more than 200 auto parts manufacturers such as Mitsutaka went bankrupt.” In the United States, “Garret Motion”, which supplies parts to Ford, filed for bankruptcy, in Europe, Sweden’s “Bionia” sold the brake business in the United States for $ 1, and Germany’s “Continental” and “Osram” He reported that the alliance was dissolved.
According to the article, the industry has analyzed that the reason why South Korea remains at 0 is that “the government’s domestic demand revitalization policy and financial support have been successful.” From March to June this year, when the Korean government reduced the individual consumption tax by 70%, the number of finished vehicles sold in South Korea increased by about 15.9% from the same period of the previous year. In July-December this year, when the rate of reduction was reduced from 70% to 30%, the average number of vehicles sold increased by around 5%.
The effect is clear when compared to the January-February year sales decline of 16.9% year-on-year before the cut. An industry insider said, “Although the export volume dropped sharply due to the influence of Corona, the epidemic prevention was better than in other countries, and domestic sales increased supported by the reduction of individual consumption tax, and Korean parts makers escaped bankruptcy. It was said that he said.
Supported by strong domestic demand, South Korea’s production ranking of finished vehicles has risen from 7th in the world last year to 5th this year. According to the domestic sales standards by country up to October this year, South Korea is in a slump with major countries such as China (minus 4.7%), the United States (minus 17.3%), and Japan (minus 14.7%). It is said that it increased by 2%.
A Korean internet user who saw this article said, “In the end, you endure the blood tax? The blood tax is not infinite. The population is declining. You should face the reality. Sometimes structural adjustment is necessary.” “It’s not a good thing. Japan will resurface with shaving structural adjustments, and bad companies in South Korea will be out of control. The crisis is not over, so I hope to work harder and become a technological powerhouse. “Taxes and policies helped Hyundai / Kia Motors. Instead, they should be more competitive.” “Japanese young people don’t have the money to buy a car and don’t get a license. South Korea will soon be in the same situation. There are uneasy voices such as “Naru”. (Translation / Editing / Domoto)