Auto parts supplier to get liquidity support

South Korea’s Financial Services Commission and the Ministry of Knowledge Economy said they would provide liquidity to auto parts suppliers and help revive the auto loan market to boost the dull buying mood among consumers. The overall market was forecast to be grim, as the Korea Automobile Manufacturers Association said local automakers would suffer a 5.6% fall in exports and an 8.7% drop in domestic sales next year. A high-ranking official of the financial watchdog was quoted as saying that the government will refrain from infusing direct capital into the sector, as it would breach World Trade Organization regulations. However, indirect methods, such as reducing the excise tax on automobiles in mid-December, is an example of what the government is doing to boost domestic demand. (December 22, 2008)