SEOUL, Nov 14 (Reuters) - South Korea's government said

on Friday it would boost subsidies for electric vehicles (EVs)

by 20% next year as part of a package to help the country's auto

industry weather risks caused by U.S. tariffs.

The government said in a statement passenger EV subsidies

would be increased to 936 billion won ($658.47 million) in 2026,

up from 780 billion won this year, in a bid to stimulate local

demand.

The package will also include support to help auto parts

suppliers, with the government pledging to supply policy finance

at levels above the 15 trillion won it provided in 2025.

South Korea will also strengthen guarantee programmes for

auto parts makers operating overseas, such as in the United

States and Mexico, to offer long-term, low-interest loans.

The Asian country's auto industry shipped exports worth

$70.8 billion in 2024, accounting for more than 10% of the

country's $683.8 billion in total exports.

Hyundai Motor ( HYMLF ), which together with its affiliate

Kia Corp ( KIMTF ) is the world's third-biggest automaking

group by sales, has been hit by a 25% tariff for exports to the

United States, its biggest market generating about 40% of

revenue.

That tariff rate was lowered to 15% after Washington and

Seoul reached a trade agreement last month.

However, the 15% rate has not been applied to South Korean

autos and parts makers as the countries have yet to issue a

joint fact sheet outlining the agreement on trade and security

issues struck last month.

More than two weeks after U.S. President Donald Trump and

South Korea's Lee Jae Myung announced they had resolved months

of negotiations over tariffs and security matters, the two sides

have yet to release any written agreement.

South Korean Foreign Minister Cho Hyun asked U.S. Secretary

of State Marco Rubio to work for the swift release of a joint

fact sheet on the sidelines of a meeting of G7 foreign ministers

in Canada, the Yonhap News Agency reported on Thursday.

($1 = 1,421.4800 won)