Korea's car production reaches its limit of 100 million units, with emphasis on R&D to come

According to the Korea Automobility Association (KAMA) and other sources, the cumulative number of automobiles produced in South Korea was 126.4 million in April. The industry is aiming to reach 130 million by 2026.
The cumulative number of automobiles produced in South Korea surpassed 1 million in 1982, 10 million in 1992, and 100 million in 2018.
On the other hand, some are of the opinion that quantitative growth has reached its limit.
"Domestic production will decrease and overseas production will increase in the future," he said. Since 2011, when the annual production of automobiles in Korea reached a peak of 4,657,094 units, it has fallen by 4 million units.
Experts say the reasons for Korea's decline in automobile production include the burden of installing high-performance equipment, a slowdown in production speed, a shift to automation, and the reorganization of the global supply chain.
Increased R&D investment and government support have emerged as the key to overcoming the productivity limitations facing the Korean auto industry.
Professor Kwon said, "In Korea, where it is difficult to lower production costs, it is important to increase the added value of products. If the government supports R&D costs, profits can increase even if production volume decreases.
"We can be strategic."