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IHS Automotive Regional Report SupplierBusiness The South Korea Automotive Supplier Report

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Contents Overview of Macro Economic Situation...... 6 Planned Investment in Infrastructure Development Projects...... 7 National Automotive Policy & Plans...... 8 Tax Structure...... 9 Non-Tariff Barriers...... 12 Regulations: Emissions & Safety...... 12 Manufacturing Advantage...... 13 Overview of Automotive Industry & Supply Chain...... 14 Structure of Automotive Industry...... 14 Production in 2012 & Forecasts...... 17 Export Destinations & Trends...... 18 Manufacturing Presence of OEMs & Production Bases...... 20 Investments by OEMS...... 22 Overview of Vehicle Component Industry...... 23 Investments by Vehicle Component Suppliers...... 24 List of Joint-ventures and Mergers & Acquisitions in 2012/2013...... 25 OEM Supplier Relationship...... 25 Involvement of Automakers in Supplier Development...... 26 Technology Trends...... 26 Cluster Development...... 26 R&D Capabilities...... 28 Opportunities, Challenges & Future Outlook...... 29 Supplier Profiles...... 31 ACS...... 31 Atlas BX...... 33 Austem...... 36 Autoliv Korea...... 39 Central Corporation...... 41 Continental Automotive Electronics...... 43 Daehan Solution...... 46 Daesung Electric...... 48 Daesung Eltec...... 50 Daewon Kang Up...... 52 DAS...... 55 Dayou A-Tech...... 58 DBI...... 60 Denso PS...... 62 DIC...... 64 Dongah Tire & Rubber...... 67 Dongbo Industrial...... 69 Dongyang Mechatronics...... 71 DRB Holding...... 74 Duck Il Industry...... 76

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Duckyang Industry...... 78 Ecoplastic...... 80 Frixa...... 83 Halla Visteon Climate Control...... 85 Hanil E-Hwa...... 89 Hanil Precision...... 93 Hankook Tire...... 95 Heesung Catalysts...... 100 Hwashin...... 102 Hyosung Corporation...... 105 Iljin Global...... 109 INFAC Corporation...... 111 Inzi Controls...... 114 Jico...... 117 Kiswire...... 119 KM&I...... 122 KOMOS...... 124 Korea Flange...... 126 Kumho Tire...... 129 Kyung Chang Industrial...... 132 Kyung Chang Wiper...... 134 Kyungshin Corporation...... 136 Leehan Corporation...... 139 LG Chem...... 141 Mando Corporation...... 144 Nexen Tire...... 150 Pyeong Hwa Automotive...... 153 Robert Bosch Korea...... 157 Shinhan Valve Industrial...... 159 Sungwoo Automotive...... 161 Sungwoo Hitech...... 163 THN Corporation...... 167 Unick Corporation...... 169 Wooshin Corporation...... 171 Yoosung Enterprise...... 173 Yura Corporation...... 176 Figures Figure 1: South Korea GDP Growth (1997–2013E)...... 6 Figure 2: South Korea - Automotive Imports by Area (unit: US$1,000)...... 10 Figure 3: Market Share among Imported Brands in South Korea (2012)...... 11 Figure 4: South Korean Vehicle Production by Maker (units)...... 15 Figure 5: South Korea Automotive Parts Sales (2012)...... 16 Figure 6: South Korean Vehicle Production, Sales & Export (units)...... 17 Figure 7: Market Share of Top 10 Best-selling Vehicles in South Korea (2012)...... 18 Figure 8: South Korea’s Top Ten Export Markets (2012)...... 18 Figure 9: South Korea Vehicle Export by Carmaker (units)...... 19 Figure 10: Automotive Parts Exports (2011)...... 19 Figure 11: Kia Sales Breakdown by Region...... 20 Figure 12: Hyundai Vehicle Exports by Destination...... 20 Figure 13: Domestic Market Share by Sales (2012)...... 21 Figure 14: Breakdown of South Korean Vehicle Production (2011)...... 22

Figure 15: Automotive Parts Clusters in South Korea...... 27 Figure 16: South Korea Vehicle Production Forecast 2013–2016...... 30 Tables Table 1: Special Excise Tax Rates and Other Vehicle Taxes...... 9 Table 2: Annual Automotive Tax Rates for Personal Use Vehicles...... 10 Table 3: Automotive Import Duties...... 11 Table 4: Top Ten Import Vehicle Sales by Model in South Korea (2011)...... 12 Table 5: Fuel-Efficiency Grades...... 13 Table 6: Comparison of Key Manufacturing Indicators...... 14 Table 7: Shareholdings in Carmakers in South Korea...... 15 Table 8: Size of Tier-one Automotive Suppliers in South Korea:...... 16 Table 9: Carmakers’ Plants in South Korea & Production Capacities...... 20 Table 10: Carmakers in South Korea and Number of Suppliers:...... 21 Table 11: Planned New Car Models in South Korea...... 23 Table 12: Top 10 Automotive Lithium Ion Battery Makers (ranked by strategy and execution):...... 26 Table 13: Carmaker’s Plant Locations...... 26 Table 14: Who Supplies Whom...... 28