Korea auto output to increase slightly in 2023: research

Domestic automobile output next year is forecast to increase 1.4% over this year to 3.7 million units.

The Korea Automobile Manufacturers Association made the announcement Tuesday at the Industrial Development Forum hosted by the Korea Industry Alliance Forum. 

It added, however, that that level would only be achieved when there is an adequate supply of raw and intermediate materials including microchips.

If that occurs, domestic car production would fall below 4 million units a year for five consecutive years, from 2019 to 2023.

Production of 4 million units per year is the minimum needed to ensure smooth operation of the domestic auto ecosystem. If annual output falls below 4 million units a year, pay cuts are deemed inevitable.

The association also forecast exports of domestic cars reaching 2.3 million units next year, up 3.1% from this year, with export value rising 7.5% to $57 billion.

Write to Hyung-Kyu Kim at khk@hankyung.com