Hyundai Motor and Kia Corporation, Together with the Government, Support Carbon Reduction Equipment Replacement Costs for Tier 1 Suppliers

[Financial News] Hyundai Motor and Kia Corporation announced on the 17th that they had signed the 'Supply Chain Carbon Reduction Partnership Program' business agreement with the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Foundation of Korea Automotive Parts Industry Promotion, and automotive parts suppliers.
This agreement is an extension of Hyundai Motor and Kia Corporation’s ongoing efforts to reduce carbon emissions across their supply chain. It aims to accelerate decarbonization throughout the supply chain based on mutual growth with their partners.
Hyundai Motor and Kia Corporation will support their suppliers in establishing mid- to long-term carbon reduction plans and will operate the 'Carbon Reduction Partnership Program' to assist with equipment adoption and capacity building.
This program serves as a public-private support model that encourages voluntary reduction and the spread of cooperation within the supply chain. Its goal is to activate a linked and co-prosperity structure, enabling low-carbon transitions to extend to lower-tier suppliers.
Through this agreement, the Ministry of Trade, Industry and Energy and Hyundai Motor and Kia Corporation will support the replacement costs for carbon reduction equipment for tier 1 parts suppliers. Subsequently, tier 1 suppliers will return part of the support to tier 2 suppliers, in cooperation with the Ministry of SMEs and Startups, to help them purchase carbon reduction equipment and operate carbon neutrality education programs, thereby establishing a joint public-private support system.
Aiming to achieve carbon neutrality by 2045, Hyundai Motor and Kia Corporation have set the low-carbon transition of their supply chain as a core strategy, pursuing net-zero carbon emissions throughout the entire vehicle lifecycle—from production and operation to disposal.
In April 2025, they plan to host the 'Automotive Parts Industry ESG and Carbon Neutrality Expo' for their suppliers, introducing effective technologies and equipment, and supporting the enhancement of their partners’ sustainable management capabilities.
A representative from Hyundai Motor and Kia Corporation stated, "This agreement is a practical cooperation model for supply chain decarbonization created jointly by companies, the government, and public institutions," adding, "It will serve as a catalyst for sustainable management and the transformation of the industrial ecosystem."
hjkim01@fnnews.com Kim Hak-jae Reporter