South Korea and Japan Explore New Automotive Alliances Amid Global Industry Shifts

This photo provided by the Incheon Port Authority on March 18, 2024, shows newly manufactured automobiles waiting to be shipped overseas. (Image courtesy of Yonhap) SEOUL, April 2 (Korea Bizwire) — Once fierce competitors in the global auto industry, South Korea and Japan may now find common ground as shifting geopolitical landscapes and the digital transformation of mobility open new paths for cooperation, a new report suggests. In its latest analysis titled “Strategies and Implications for Japan’s Auto Industry in an Era of Transformation” , the Korea Trade-Investment Promotion Agency (KOTRA) outlines how both nations are adjusting to global headwinds—including a possible second Trump administration in the United States and the rapid evolution of software-defined vehicles (SDVs).

The report highlights a shared strategy among South Korean and Japanese automakers to expand local manufacturing in the U.S. in response to anticipated protectionist trade policies.



Major firms are also restructuring their supply chains to rely more heavily on American-based parts procurement. These changes have already sparked new industrial partnerships. For instance, Toyota has inked supply deals with LG Energy Solution, while Nissan has expanded collaboration with SK On—signaling a broader trend of strategic cooperation between Korean and Japanese companies.

KOTRA argues that the convergence of industrial strengths—Japan’s manufacturing prowess and Korea’s technological edge—positions the two countries to jointly develop next-generation automotive technologies, particularly in software for mobility services. “As cars evolve into smart devices, automakers are increasingly partnering with firms outside traditional industry boundaries,” the report notes. “In such a landscape, Korean and Japanese companies—each with distinct advantages in software innovation—could create significant synergies.

” While competition in emerging markets is expected to intensify through 2026, KOTRA concludes that selective collaboration between the two nations will be essential for securing long-term growth in future mobility sectors. “The Korea-Japan automotive relationship has long been defined by a mix of rivalry and cooperation,” said Lee Ji-hyung, head of KOTRA’s Economic and Trade Cooperation Division. “With rising global uncertainties, now is the time to actively seek new opportunities for partnership.

” M. H. Lee (mhlee@koreabizwire.

com).