South Korea’s car parts manufacturers

South Korea’s car parts manufacturers

South Korea’s automotive parts industry is a global powerhouse—deeply integrated into supply chains for internal combustion, hybrid, and electric vehicles. A few key trends and players capture its strength and growing influence worldwide.

Industry Size & Structure

As of 2023, around 691 auto‑parts manufacturers operated in South Korea—down from earlier levels but still significant, including 392 SMEs .

Many of these firms are located near major assembly hubs: Gyeonggi‑do (159 suppliers) and Gyeongsangnam‑do (90 firms) lead .

Another source tallied 845 manufacturers as of May 2025, underscoring increasing digital adoption—LinkedIn, Instagram, YouTube presence—and indicating a dynamic small‑business sector .

Leading Companies & Specializations

South Korea boasts a spectrum of global-tier parts suppliers:

1. Hyundai Mobis (Seoul)

Strength: chassis, safety, electronics components for Hyundai and Kia.

Ranked 7th globally among auto-parts suppliers, with $25 billion in revenue in 2020 .

2. Mando Corporation (Seongnam-si)

Focus: braking, suspension, steering systems; expanding into ADAS (advanced driver-assistance) .

3. Hanon Systems (Daejeon)

World’s second-largest thermal-management supplier (A/C, cooling systems); 13% global market share . Now majority-owned by Hankook .

4. Hyundai Transys (Seosan)

Manufacturer of transmissions and seats; fourth-largest Korean supplier, ranked 34th globally in 2020 .

5. SL Corporation (Daegu):

Lighting systems and mirrors; held an impressive 68.3% domestic LED headlamp market share, climbing to global rank 77 in 2020 .

Other notable firms include Sungwoo Hitech (body structures), Seoyon E‑Hwa (trim parts), Hwashin Tech (chassis components), Yura Corporation (wiring harnesses), and Hyundai Wia, reflecting diverse specialty coverage .

Global Reach & U.S. Investments

Collectively, South Korea’s auto‑parts sector accounted for about 14% of national exports .

In the U.S., increased investment is driven by supply-chain shifts, subsidies (e.g., through the Chips and Science Act), and electrification demand.

Samkee opened a manufacturing plant in Tuskegee, AL ($128 million) .

Hyundai Mobis, LG Energy Solution, and others launched substantial U.S. projects in battery, EV component supply .

Several Korean parts suppliers are establishing EV-focused plants to support Hyundai Motor Group facilities in Georgia: Hwashin, DAS Corp., PHA, Seoyon E-Hwa, Hyundai Mobis, among others—collectively contributing over $2 billion and thousands of U.S. jobs .

Transition to Future Mobility

Nine Korean suppliers appeared in Automotive News’s global Top 100 in 2020—up from five in 2018—highlighting rapid growth .

Electrification and autonomous-driving technologies are reshaping the market:

SL and Hanon are innovating with LED lighting and thermal systems for EVs .

Mando is spinning off ADAS as a standalone business—with ambitions of W9 trillion (~$7.8 B) in annual sales .

Conversely, smaller manufacturers tied to ICE (internal combustion engine) parts—like exhaust systems—are struggling amid the EV pivot .

Outlook

South Korea’s auto‑parts industry is at a major inflection point:

Strengths: globally competitive OEM and aftermarket suppliers; concentration of key technologies; close ties with Hyundai Motor Group.

Challenges: sector consolidation (industry drop from 824 to ~700 firms since 2019), and survival pressure on traditional ICE‑component makers .

Drivers of future growth: EV thermal and lighting systems, ADAS, and U.S. production supported by international investment and subsidies .

In sum, South Korea’s auto-parts manufacturing realm is evolving—upgrading from a large, mid-tier industrial base to a future-ready, high-tech ecosystem. With leading global players, strong government-industry alignment, and increasing U.S. footprint, it’s poised to remain a strategic backbone for global automakers.