China’s shadow looms larger in Korean auto industry

The logo of Chinese electric vehicle manufacturer BYD / AFP-Yonhap

China’s growing influence on the Korean auto industry fuels concerns that local players may become technologically dependent on emerging Chinese carmakers and parts manufacturers, experts and industry officials said Thursday.

In most tech areas, China is making headlines for its outstanding technological progress, but the rapid pace of penetration from Chinese carmakers poses a particular threat to their Korean counterparts.

The trend has intensified, as evidenced by multiple partnerships between Korean carmakers and their Chinese rivals.

KG Mobility, a mid-tier automaker in Korea, has continued to aggressively deepen ties with Chinese carmakers. Earlier, KG Mobility adopted BYD’s lithium iron phosphate (LFP) batteries for its Torres EVX all-electric SUV.

The Korean carmaker is also on track to expand its tech ties with the Chinese electric vehicle (EV) and battery maker by equipping the Torres hybrid SUV with its so-called dual tech hybrid system co-developed with BYD. KG Mobility is also scheduled to launch the SE10 large SUV jointly developed with China’s Chery Automobile sometime in the latter half of 2026.

KG Mobility's Torres EVX all-electric SUV / Courtesy of KG Mobility

The Korean carmaker’s strategy to strengthen ties with Chinese players is generating solid outcomes, as the partnership with Chinese companies has enabled KG Mobility to launch more price-competitive SUV lineups, helping the carmaker jump on track for solid earnings recovery for the past few years.

However, experts and officials from the industry remained anxious over local carmakers’ growing reliance on Chinese partners. They said this may end up weakening the technological competitiveness of local players at a critical time when global protectionism is growing stronger.

“The case of KG Mobility clearly shows that local players are getting more and more subordinate to Chinese capital,” said Kim Pil-soo, an automotive technology professor at Daelim University College.

Renault Korea's Grand Koleos SUVs / Courtesy of Renault Korea

Renault Korea’s Grand Koleos SUV was also developed using the hybrid platform of China’s Geely.

“China has outpaced Korea in almost all auto tech areas, such as batteries, EVs, autonomous driving and artificial intelligence,” Kim said.

“Even if each firm has to keep in mind that they should not depend excessively on China and focus more on developing their own technologies, much more important is the role of the government. The government needs to introduce timely policy support for the survival of local auto industry players against the escalating threat from China.”

Officials from the auto industry also expressed concerns over escalating trade uncertainties.

“The growing fear of a trade conflict between the United States and China raises calls for Korea’s key industry players to reduce their reliance on China, and the automobile is no exception,” an official from the auto industry said.