They went on to expand their manufacturing industry and developed the spare parts also by themselves. The automobile industry in South Korea entered the giant production system during the 1960s. Though they entered the business quite late, they grew very fast and they soon became one of the biggest automobile producers in the world. The government of South Korea announced the Automobile Industry Promotion Policy in the year 1962 and this act helped private investments to work well and many Korean car brands sprung up at that time.
During this time KIA Industry was established which was then known as Kyeongseong Precision Industry. Korea’s laws on automobile marketing and productions are tactically framed and the country restricts any foreign automobile company to participate in Korean market until they come up with a joint venture with a Korean cars brands. During the 1960s many Korean brands made collaboration with Japanese automobile companies and made their roots firm. Some Japanese brands that collaborated are Toyota and Nissan.