Gyeonggi Province Promotes Alternative Certified Auto Parts with Competitive Performance and Lower Prices

[Suwon Ilbo=Park No-hun] To strengthen the competitiveness of small and medium-sized auto parts companies and guarantee consumers' choice of parts, Gyeonggi Province will work with Jeollabuk Province to establish a successful model for the 'Alternative Certified Auto Parts Activation Project'.

Governor Lee Jae-myung of Gyeonggi Province and Governor Song Ha-jin of Jeollabuk Province signed a business agreement on cooperation on the 17th at the Jeonbuk Institute of Automotive Technology (JIAT) in Gunsan, Jeollabuk Province, which includes this content.

Alternative certified auto parts are new products that have been certified by a government-designated organization to be at the same level as parts custom-manufactured by complete vehicle manufacturers in terms of quality and safety, and are different from used or reused parts.

The price is at 60-65% of the level of complete vehicle parts.

Jeollabuk Province has been actively promoting the development of the alternative auto parts industry, centered on remaining parts production companies and key research and development personnel after GM Korea left Gunsan.

Governor Lee said, "When using automobiles, situations inevitably arise where parts need to be replaced or repaired, and consumers typically end up using expensive parts custom-manufactured by complete vehicle manufacturers, which becomes a burden on household finances. It is deeply meaningful that Gyeonggi Province is joining hands with Jeollabuk Province, which is seeking a breakthrough in regional economies by promoting the use of alternative certified parts with quality similar to complete vehicle parts but at lower prices."

The governor continued, "Gyeonggi Province, which has the most registered vehicles in the nation, is the largest market for the auto parts industry. If the alternative certified parts market becomes activated, consumers will have more diverse choices in parts, reducing repair and insurance costs, and parts companies will have their own market independent of large corporations, creating competitiveness. This will demonstrate that fair economy is a great help to consumers' livelihoods and can be a new opportunity for regions."

Governor Song said, "We expect that with Gyeonggi Province joining efforts in market development, which is the greatest challenge for the alternative certified parts industry, it will revive local companies and benefit consumers nationwide. We will continue to make efforts with Gyeonggi Province to foster and activate the alternative certified parts industry."

Through the agreement, Gyeonggi Province and Jeollabuk Province agreed to cooperate on ▲establishing the foundation for the alternative certified parts activation project ▲supporting production, distribution, and consumption of alternative certified parts ▲implementing institutional improvements and policy advocacy to enhance consumer awareness ▲promoting public campaigns to expand consumption.

Through the alternative certified auto parts activation project, consumers' choice of parts is guaranteed, allowing consumers to select high-quality and affordable parts to reduce repair costs. In particular, when alternative certified parts are used in automobile insurance repair, consumers can automatically receive a refund of a portion (approximately 25%) of the complete vehicle parts price, allowing them to directly experience the cost reduction effect.

The province plans to prioritize actively using alternative certified parts on approximately 800 official vehicles owned by the provincial government and its affiliated public institutions, and to implement support projects to promote consumption, such as encouraging participation from related industries in the province.

Furthermore, plans include wide-ranging consumer promotion activities and construction of a platform that allows consumers to directly order alternative certified parts so they can use them with confidence.

Meanwhile, Governor Lee visited the certified parts support center within the institute following the agreement ceremony, viewing the displayed alternative certified parts and inspecting the facilities for equipment construction to support certified parts production. National Assembly Member Shin Young-dae and Gunsan Mayor Kang Im-jun also attended the ceremony and on-site visit.