South Korea has announced emergency measures to support its automotive sector following US tariff hikes, shifting focus to domestic and "Global South" markets. In 2024, auto exports to the US accounted for US$34.7 billion of South Korea's US$127.8 billion total exports to the country.

The government will provide KRW 3 trillion (US$2 billion) in emergency liquidity, expand policy financing to KRW 15 trillion (US$10.18 billion), and raise electric-vehicle subsidies to 30%-80% of price discounts from the current 20-40% with the period extended by six months to the end of this year. Taxes on automobile purchases new cars will also drop from 5% to 3.5% by June.

Additionally, public agencies will prioritize purchasing eco-friendly commercial vehicles in 2025. Eco-car sales surged 50% domestically and 32% in exports in February. To diversify markets, South Korea will boost trade support for deals with the UAE, Mexico, and others. Meanwhile, South Korean battery firms (LGES, SK On, Samsung SDI) saw global EV market share fall to 17.7%, down by 5.5% year on year, prompting calls for localized North American production.