Seoul, Nov 17 Hyundai Motor and Kia will join hands with the government and 87 auto parts manufacturers in a joint campaign to reduce carbon emissions from the entire automotive sector, the industry ministry said on Monday.
Under the partnership, the two major automakers will first support the replacement of emission reduction facilities of first-tier auto parts suppliers in cooperation with the government, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.
Then, the first-tier suppliers will provide the support they receive to second-tier suppliers, with an aim to create a chain effect of carbon reduction throughout the automotive supply chain, the ministry explained.
The ministry said the collaboration project was created to help strengthen the emission reduction competitiveness of Korea's automotive industry amid growing emission-related regulations in major economies, such as the European Union's carbon footprint regulations for vehicles.
"Carbon reduction in supply chains cannot be achieved by any single company alone," said Park Dong-il, a ministry official in charge of industrial policy. "It requires collaboration among the government, large corporations, and small and medium-sized companies."
"We hope that this supply chain carbon reduction agreement will not only help the country achieve its 2035 Nationally Determined Contribution (NDC) target, but also accelerate the green transformation of our industries and provide them an advantage in global supply chain competition," he added.
South Korea recently set its NDC target of greenhouse gas emission reduction by 53-61 per cent from 2018 levels by 2035.
The ministry said it plans to conduct pilot programs on the emission reduction partnership this year with four different industrial consortiums, led by LG Electronics Inc., POSCO Group, LX Hausys Ltd. and LG Chem Ltd., with an aim to expand such partnership programs to various sectors in 2026.
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