Daihatsu could buy local car parts

Korea has long been dependent on Japanese imports for many auto parts, but thank to advances in domestic technology, it’s now poised to export parts back to its larger neighbor, according to a state-run organization.

The Korea Trade-Investment Promotion Agency said yesterday that Daihatsu, Japan’s fourth-largest carmaker, has sent a delegation to Korea to consider buying auto parts.

Nine Daihatsu purchase department executives and engineers will visit 14 local car part manufacturers from today to Wednesday and hold meetings, Kotra said.

Daihatsu has not confirmed a deal yet, but told Kotra it has held internal discussions about a purchase plan. A sizeable export contract would mark the first significant purchase of Korean car parts by a Japanese automaker.

“We got to know that car parts manufactured in Korea are cheaper than the ones made in Japan but don’t lag behind Japanese car parts in terms of quality,” said Kosaka Ken, a Daihatsu executive in charge of part procurement, according to Kotra.

The agency release said the Japanese carmaker’s interest in local parts was piqued by a Kotra promotional event held at Daihatsu headquarters in Osaka in December, in which 27 local parts manufacturers participated. Daihatsu announced a plan to start buying parts overseas in September. “We introduced around 100 local car parts makers to Daihatsu since July,” said Jeon Byeong-seok, head of Kotra’s Korea Business Center in Osaka.

Kotra said it is planning similar events at the headquarters of Nissan in June, Mitsubishi in September, Suzuki in September and Toyota in November.

By Moon Gwang-lip [joe@joongang.co.kr]