SHORTAGE OF SEMICONDUCTORS HIT AUTOMAKERS

[Anchor Lead]

The nation's auto industry is being hit hard by the deepening global shortage of semiconductors used in automobiles. Carmakers have to suspend their factories this month, as they did in April.

[Pkg]

This time, the factories producing the Tucson, Nexo, Avante and Venue will suspend their operations for two days.

[Soundbite] Hyundai Motor official : "As semiconductor supply is virtually checked on a daily basis, we will decide on whether or not to suspend other factories, depending on situational changes."

Since April, this is the fourth time Hyundai has temporarily suspended its factories in Ulsan and Asan. For the first time in its history, Kia has also closed a plant in Gwangmyeong for two days this week. GM Korea's Changwon factory is also operating at only half capacity.

[Soundbite] Lee Hang-gu(Korea Automotive Technology Institute) : "The current shortage is expected to continue into the third quarter of this year. Automakers will also have to temporarily suspend their factories next year due to semiconductor supply disruptions."

More and more customers are complaining about the delayed deliveries of their pre-ordered cars amid the protracted semiconductor shortage. In the case of the electric vehicle Ioniq 5, over 40,000 units had been sold in advance. But just 114 cars were delivered to their owners in the first month of its release. The problem is that the semiconductor shortage will unlikely be resolved in the near future. This is the biggest challenge the South Korean auto industry currently faces.