Parts makers grow with industry

Korea’s car parts suppliers are expanding their scale in tandem with the overall growth of the domestic auto industry, statistics from the Korea Automobile Industries Cooperation Association showed.
As of last year, auto parts makers with direct partnerships with local carmakers in Korea totaled 902, and 10.1 percent were classified as large firms with at least 300 staff members. In the same survey in 2002, only 7.9 percent of all car parts makers were large-sized companies, but that advanced to 8.3 percent in 2003 and 9.3 percent in 2005.
Using industry standards, which define small and medium-sized companies as either having fewer than 300 employees or 8 billion won ($8.6 million) or less in capital, the actual number of large-sized firms amounts to 149, according to the association.
“The overall progress of the automobile industry has helped boost the size of parts makers,” said a spokesman with the group.
By region, Gyeonggi Province had the largest number of car parts suppliers at 23.6 percent, followed by South Gyeongsang Province at 16.2 percent. The port city of Busan, where Renault Samsung Motor Co. is located, accounted for 9.6 percent.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]