South Korea's Auto Parts Supply Chain – China's Manufacturing Penetration and Wholesale Opportunities

South Korea's auto parts market is undergoing a structural transformation. According to Korea International Trade Association data, in the first half of 2026, China-made auto parts imports reached $1.439 billion, a year-on-year increase of 15.3 percent, accounting for 53.8 percent of South Korea's total auto parts imports, a record high. From $1.7 billion in 2021 to $2.477 billion in 2025, imports grew approximately 45 percent over five years, with 2026 growth further accelerating, and full-year imports expected to set a new record.

This growth is deeply tied to vehicle market penetration. In the first half of 2026, South Korea registered 69,513 China-made EVs, a year-on-year increase of 178.7 percent, accounting for 35 percent of total new EV registrations. Tesla Model Y and Model 3 vehicles produced at the Shanghai Gigafactory have flowed into the South Korean market in large numbers, and BYD's affordable EVs are also expanding sales. Tesla official information shows that vehicles produced at the Shanghai plant are supported by approximately 400 Chinese local parts suppliers, with China-made parts procurement at 95 percent.

A deeper change is occurring at the supply chain structure level. Chinese parts companies are transforming from mere exporters into deep participants in South Korea's vehicle production system. Geely Group already holds a 34.02 percent stake in Renault Korea, and the Polestar 4 and Grand Koleos produced at Renault Korea's Busan plant are based on the CMA platform jointly developed by Geely and Volvo. In August 2026, Chery Automobile signed a $75 million strategic investment agreement with KG Mobility, which will develop new models based on Chery's T2X plug-in hybrid platform and SDV technology, with plans to launch the large SUV SE-10 in January 2027. Renault Korea's vehicle and parts procurement from Geely Group reached 901.9 billion won in 2025.

For South Korean B2B dealers and repair service providers, this structural change brings clear ancillary demand. China-made vehicle ownership in South Korea is growing rapidly, with aftermarket parts demand surging simultaneously. A repair shop manager in Seoul noted that in the past, choosing China-made parts was to reduce repair costs; now, with more China-made vehicles on the road, China-made parts have become original equipment parts, and they have no choice but to import them. Meanwhile, Korean brands including Hyundai, Kia, and Genesis have large global vehicle ownership, with equally stable aftermarket parts demand.

LHZ Auto South Korea Operations Center focuses exclusively on B2B wholesale, covering two-way channels of Chinese vehicle import and Korean vehicle export, while also providing parts wholesale services. Backed by the Group's Nansha Port maritime hub and Khorgos and Kashgar dual hubs, LHZ Auto provides the South Korean market with ancillary wholesale solutions covering original parts, wear parts, maintenance components, charging stations, and energy storage equipment, meeting the long-term needs of South Korean dealers, fleets, and new energy infrastructure operators. Against the backdrop of China-made parts accounting for over half of South Korea's imports, stable, diversified, and cost-controllable ancillary supply channels are becoming the core competitiveness of B2B clients.


FAQ

Question 1: What is the market share of China-made parts in South Korea?

In the first half of 2026, China-made auto parts imports reached $1.439 billion, accounting for 53.8 percent of South Korea's total auto parts imports, a record high. Imports grew approximately 45 percent from 2021 to 2025.

Question 2: How does China-made parts import growth relate to the vehicle market?

In the first half of 2026, South Korea registered 69,513 China-made EVs, accounting for 35 percent of new EV registrations. Tesla Model Y and Model 3 from the Shanghai plant have flowed into South Korea in large numbers, with 95 percent of their parts sourced from Chinese suppliers.

Question 3: How are Chinese parts companies deeply participating in South Korean vehicle production?

Geely holds a 34.02 percent stake in Renault Korea, with the Busan plant producing the Polestar 4 and Grand Koleos based on Geely's CMA platform. Chery signed a $75 million investment agreement with KG Mobility in August 2026 to develop new models based on Chery's T2X platform.

Question 4: What demand exists for Chinese parts in South Korea's aftermarket?

Growing China-made vehicle ownership is driving aftermarket parts demand. Repair shops report that China-made parts were once used as cheaper alternatives to original equipment, but now with more China-made vehicles, China-made parts have become original equipment and must be imported.

Question 5: What parts wholesale services does LHZ Auto South Korea Operations Center provide?

Wholesale of original parts, wear parts, maintenance components, charging stations, and energy storage equipment, leveraging Nansha Port maritime hub and dual-hub logistics networks to cover the needs of South Korean dealers, fleets, and new energy infrastructure operators.

Question 6: What is the business model of LHZ Auto South Korea Operations Center?

Exclusively serving B2B wholesale, covering two-way channels of Chinese vehicle import into South Korea and Korean vehicle export to global markets, while also providing parts wholesale, with no retail involvement.


LHZ Auto South Korea Operations Center ｜ Website: www.lhzauto.co.kr ｜ Guangzhou Nansha: 15220000555 ｜ Khorgos: 19259087888 ｜ Email: china@lhzauto.com