Automotive Parts Circular Economy Project Wins KRW 9.9B

South Korea's Jeonnam-Gwangju Special City has been selected for the Ministry of Trade, Industry and Resources' 2026 automotive parts circular economy infrastructure project, securing KRW 9.9 billion in central government funding. The selection will support the development of facilities and specialized equipment for remanufacturing used automotive parts, strengthening infrastructure for the recovery and reuse of automotive components.

The city plans to invest KRW 45 billion over five years, covering the 2026–2030 period, to establish used automotive parts remanufacturing facilities at the Energy Valley Industrial Complex in Nam-gu, Gwangju. The project will also introduce 14 types of key equipment covering disassembly, cleaning, inspection and quality certification. These facilities and equipment are intended to establish the technical capabilities required to process used automotive components and assess their quality for subsequent commercial use.

The planned infrastructure will support the complete process, from collecting used automotive parts and remanufacturing them to conducting quality inspections, obtaining certification and facilitating sales. The Korea Automotive Technology Institute and other participating organizations will contribute to developing remanufacturing technologies and supporting commercialization activities. This assistance is intended to help local companies develop their capabilities and bring remanufactured automotive components to market.

Industry Impact & Outlook

The project represents an investment in South Korea's automotive parts circular economy infrastructure, combining government funding, specialized equipment and institutional technology support. By establishing facilities covering collection, remanufacturing, testing, certification and sales, Jeonnam-Gwangju Special City aims to create an integrated framework for used automotive parts recovery and commercialization. The involvement of the Korea Automotive Technology Institute and other organizations also connects technology development with the commercial needs of local companies.

Frequently Asked Questions

What is South Korea's 2026 automotive parts circular economy infrastructure project?
It is a government-supported initiative to establish facilities and equipment for remanufacturing used automotive parts in Jeonnam-Gwangju Special City. Selected under the Ministry of Trade, Industry and Resources' 2026 automotive parts circular economy infrastructure project, the initiative will support activities covering used-parts collection, remanufacturing, inspection, quality certification and sales. Its objective is to establish the infrastructure and technical support needed to develop remanufacturing capabilities and help local companies commercialize remanufactured automotive components.

How much funding has Jeonnam-Gwangju Special City secured?
Jeonnam-Gwangju Special City has secured KRW 9.9 billion in central government funding for the automotive parts circular economy infrastructure project. The city plans to invest a total of KRW 45 billion over five years, from 2026 through 2030. The government funding forms part of this larger investment plan, which will support the establishment of used automotive parts remanufacturing facilities and the introduction of specialized testing, evaluation and certification equipment at the Energy Valley Industrial Complex in Gwangju.

Where will the automotive parts remanufacturing facilities be established?
The planned used automotive parts remanufacturing facilities will be established at the Energy Valley Industrial Complex in Nam-gu, Gwangju, South Korea. The location will host the infrastructure and equipment required for processing used automotive components. The project includes facilities and equipment for disassembly, cleaning, inspection and quality certification, supporting the different stages of remanufacturing. The development is part of Jeonnam-Gwangju Special City's five-year investment plan covering the period from 2026 to 2030.

What equipment will the project introduce?
The project plans to introduce 14 types of key equipment to support used automotive parts remanufacturing and quality assessment. The equipment will cover four main activities: disassembly, cleaning, inspection and quality certification. These capabilities are intended to support the processing and evaluation of used automotive components throughout the remanufacturing process. The infrastructure will form part of the facilities being established at the Energy Valley Industrial Complex in Nam-gu, Gwangju, under the KRW 45 billion investment plan.

What role will the Korea Automotive Technology Institute play?
The Korea Automotive Technology Institute and other participating organizations will support remanufacturing technology development and commercialization by local companies. Their involvement will help connect technical development with the practical requirements of bringing remanufactured automotive components to market. The wider project covers the process from used-parts collection and remanufacturing through quality checks, certification and sales. This institutional support is an important component of the infrastructure initiative alongside the planned facilities and specialized equipment.