Twenty first-time car companies in Korea collapsed
https://japanese.joins.com/article/054/254054.html?servcode=300§code=300
June 03 , 2019
[C Korea Economic Daily / Chuo Daily Japanese Edition ]
20-1st-time car companies in Korea collapsed2
20-1st-time car companies in Korea collapsed1
The 20 first cooperation parts makers that have supported
the Korean automobile industry disappeared last year.
It is the result of not being able to endure the aftereffects associated
with the closing of Korea GM Gunsan (Kunsan)
plant last year after the Chinese high altitude defense missile
(THAAD) retaliation in 2017.
According to the Korea Automobile Industry Association
and the Korea Automobile Industry Cooperative Association on the 2nd,
Korea's primary car industry
subcontractor decreased from 851 companies
at the end of 2017 to 831 companies at the end of last year .
Auto industry cooperative related person
"In the aftermath of the industrial slump,
the number of primary partners decreased
because the major parts manufacturers were shut down
or businesses were closed.
I talked.
Sales of the primary parts manufacturer last year were 71,442.3 billion won
( approximately ¥ 132.3 billion, approximately US $ 1.2 billion)
from 2017 ¥ 72,693.7 billion
( approximately ¥ 6,669.1 billion , approximately US $ 61.6 billion )
1 Trillion won ( about 91.7 billion yen, about 84.74 million US dollars) or more.
This aftermath has spread to secondary and tertiary suppliers
reaching over 8,000 companies.
This year's situation is getting worse.
Renault-Samsung, where labor and management are in conflict,
has repeatedly shut down the Busan plant.
Renault Samsung's primary cooperation company, Company A,
recently closed the Busan plant.
It is said that the number of partners who are threatened
by the survival itself rather than closing some plants is increasing.
Renault Samsung cooperation company
closes Busan plant
... One third of listed parts manufacturers are in deficit
Renault A,
a primary supplier that supplies auto parts related to Renault Samsung Motors
and GM Korea, recently closed the Busan plant.
Renault Samsung's labor-management confrontation has led to a sharp decline
in production, and it has decided to stop trading with Renault Samsung.
People in the automotive industry
"Reduction in production of Renault Samsung reduced parts demand,
but the burden on parts manufacturers was even greater
as Renault-Samsung union continued to strike irregularly."
And explained.
The company is carrying out an emergency survey conducted
by Busan Chamber of Commerce and Industry
for Renault Samsung partners in April.
"We also consider organizing the Busan plant"
I answered.
At that time, the interpretation of "visible threat"
was dominant in the regional economic world.
However, about two months after the answer,
the plant closure became a reality.
The regional economy has been shocked.
Other parts manufacturers are not able to withstand the expanding loss,
and they are planning to consider closing
the Busan plant and significantly reduce the size of the plant.
10 10% of parts manufacturers are
in the red for three consecutive quarters
The crisis in the auto parts industry is not just a problem in Busan.
All parts makers in the metropolitan area and Ulsan,
Changwon and Incheon are shaking .
In particular, profitability is getting worse day by day .
There are a number of suppliers who can not pay interest
while operating the factory .
As a result of a survey of 86 listed parts manufacturers in South Korea
on the 2nd, the 26 Korean companies put out a deficit
in the January-March quarter.
The parts industry majors such as So-Yon R
and SL have also been unable to avoid negative results.
Many companies can not get out of the red.
Eight companies, 9.3% of the total, recorded operating losses
for three consecutive quarters.
Four companies including the peace industry were in the red
for four consecutive quarters.
The situation is not good because it is in black.
Of the 60 companies that made a profit in the January-March quarter,
40 companies had their operating profit down from the previous quarter.
Operating profit at 21 companies decreased compared
to the January-March quarter last year.
Of the 86 companies, 76.7% posted a quarter-on-quarter increase,
and 54.7% posted a loss or a drop in operating profit over
the same period last year .
The cause of the parts industry crisis is the "slow-down"
of the Korean automobile industry.
Korea's car production in the January-March quarter fell 9.7% YoY
to 957,402 units.
If you look only in the January-March quarter,
it has decreased for five consecutive years.
The dominant analysis is that the chronic high cost
and low production structure has taken hold.
The aftermath of the closing of the GM GM factory in Korea still remains.
GM GM Korea had almost no operation of the Gunsan plant
from the second half of 2017, but closed in May last year.
GM's domestic production volume of Korea GM fell sharply from 148,117 units
in 2017 last year to 121,872 units and 118,918 units this year
on a January-March term basis.
Problems have been raised up to Renault Samsung this year.
15,000 jobs for parts makers disappear
The situation for small and medium-sized parts manufacturers
not listed is even worse.
According to the Korea Automobile Industry Cooperative,
the largest auto parts manufacturer group in Korea,
the number of primary car operators in Korea dropped
from 851 in 2017 to 831 last year.
Some went out of business and some fell to a secondary partner company.
There are also cases where it has been merged with another company.
Parts industry related people
"I understand that more than 10 primary partners have disappeared
in the first half of this year alone."
Speak with.
The reality is that we can not even figure out how many second
and third collaborators decreased .
If one primary cooperating company goes out of business,
dozens of secondary and tertiary cooperating companies must suspend
their operations.
The problem is the fact that if one parts maker disappears,
tens to hundreds of jobs will be lost .
According to the Korea Employment Information Agency,
there are 384,925 employees in the Korean car and parts industry
on the end of April.
It is the lowest level after 384,196 people in April 2012.
Compared with the 40,536 at the end of December 2017,
just before the crisis in the automobile and parts industry is about to take off,
it decreased by 15,611.
Industry officials said that most of the lost jobs were for parts makers.
Lee Hang research committee member of the Industrial Research Institute
"The performance deterioration of parts manufacturers reduces the scale
of new facilities and R & D investment, and in the end,
there is a repeated vicious cycle of delaying global competition . "
He talked.
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