South Korea’s industry ministry on Monday announced a public-private partnership with Hyundai Motor and Kia to reduce carbon emissions across the automotive supply chain, launching a program that supports equipment upgrades and low-carbon transitions among parts manufacturers. The industry and SMEs ministries signed the agreement with Hyundai-Kia and 87 small and mid-sized suppliers, joined by the Korea Auto Industries Cooperative Foundation and roughly 200 industry participants. The initiative establishes a joint funding structure in which the government and Hyundai-Kia support decarbonization investment by Tier-1 suppliers, who in turn reinvest equivalent resources to assist Tier-2 firms.

The agreement forms part of