The KOAA GTT SHOW 2023 took center stage, showcasing the vibrant landscape of Korea’s auto parts industry. This event was not alone, as it shared the limelight with three other remarkable exhibitions this year: metal exhibitions, craft exhibitions, and the export consultation event named “Boom-up Korea.” All these shows converged at Hall #1, creating a dynamic hub of activity that attracted a substantially larger crowd compared to the previous year.

Notably, the presence of Chinese manufacturers, reminiscent of the post-Corona era, was strongly felt. They returned in significant numbers; however, there was a noticeable shift in their approach. Unlike 2019, when a dedicated Chinese Pavilion received criticism for overshadowing the Korean exhibitions, this time, Chinese companies chose to integrate among Korean booths. The decision to mingle with Korean counterparts was not without its drawbacks, as it left a number of attendees somewhat disillusioned.

For those familiar with the KOAA Show, certain idiosyncrasies in Korea’s auto parts industry become apparent. Due to government regulations and industry structures, companies that manufacture parts supplied to Hyundai/Kia automobiles tend to avoid participating in these exhibitions. The rationale behind this lies in the fact that selling parts to other entities besides Hyundai/Kia could result in the termination of contracts due to violations. While Korean OEM companies are eager to explore international markets, they stipulate that overseas buyers bear the mold and development costs and commit to significant production orders.

The aftermarket market, however, operates on a different scale. It doesn’t require the production of 100,000 units of a single auto part per year; even 1,000 can be substantial. This divergence in scale makes the ordering method challenging for many overseas importers. It is, in fact, only a select few who can accommodate the sizable orders that Korean OEM manufacturers seek.

As a consequence, smaller companies and trading firms, specializing in non-OEM part assembly, as well as manufacturers dealing with very small springs and materials, are prominent participants in Korean exhibitions. What prospective buyers often seek is a composite parts OEM company with robust technology development capabilities.

Adding to the complexity is a peculiar irony—Korea, despite being home to auto giants like Hyundai/Kia and GM, is not permitted to manufacture and sell body parts for Korean cars. This is due to patent registrations held by these automakers on car exterior designs. Any attempt by a Korean manufacturer to sell body parts for Korean vehicles inevitably leads to legal conflicts concerning intellectual property rights. These constraints leave many attendees at KOAA SHOW frustrated.

Nonetheless, KOAA SHOW remains Korea’s oldest, only, and largest auto parts exhibition, rendering it an indispensable fixture on the industry’s calendar. As the government prioritizes large corporations contributing substantially to economic development, the monopolistic market environment doesn’t show signs of improvement anytime soon. Nevertheless, industry stakeholders remain hopeful that these challenges will find resolution in the future.