Group 1 - South Korea plans to increase financial assistance for its automotive industry and boost subsidies for electric vehicle (EV) buyers in 2026 to mitigate the effects of US tariffs [1][4] - The government has allocated over Won15 trillion ($10.2 billion) for the auto sector in 2026, which includes low-interest loans and state guarantees for vehicle and parts manufacturers [1][4] - EV purchase subsidies will increase by over 30% to Won936 billion, and consumption and acquisition taxes will be eliminated for all-electric, hybrid petrol-electric, and hydrogen vehicles [2][3] Group 2 - A trade-in subsidy of up to Won1 million will be introduced for buyers of new EVs who scrap older cars, alongside the establishment of a new Won50 billion fund to support next-generation vehicle projects [2][3] - The government aims to achieve domestic mass production of autonomous vehicles by 2028, with a review of incentives to meet EV targets such as a 1,500 km driving range and price parity with petrol cars by 2030 [3][4] - The automotive industry has been adversely affected by US tariffs, which have significantly squeezed margins at leading Korean carmakers, despite a recent agreement to reduce tariffs from 25% to 15% [4][5] Group 3 - Hyundai Motor reported a cost of about Won1.8 trillion due to tariffs in the third quarter, while Kia reported a cost of Won1.2 trillion, with both companies expecting similar impacts in the final quarter of the year [5] - In response to tariff pressures, Hyundai and Kia are expanding production in the US and widening their hybrid model range for the North American market [5]