The Korea Times

Hyosung, Kolon clash in luxury car market

By Park Jin-haiCompetition between Hyosung Group and Kolon Group is heating up as the two aggressively expand their dealerships to meet the needs of the lucrative luxury imported car market.In March, Hyosung ― the official dealer of Mercedes, Toyota and Lexus cars ― acquired FMK, which imports and sells Ferraris and Maseratis. It recently appointed Hyosung Vice President Cho Hyun-sang as FMK’s standing director along with two others last month.Cho, the third son of Hyosung Group Chairman Cho Suk-rae, was behind the conglomerate’s acquisition of FMK.Although Hyosung’s three sons shared stakes in The Class Hyosung (Mercedes dealer), Hyosung Toyota (Toyota dealer) and The Premium Hyosung (Lexus dealer), none of them had previously participated in the imported car business as a standing director.Industry insiders say that putting Cho in charge means that the company’s imported car business will further expand its territory here, clashing with Kolon Group, which has been holding the No.1 position for sales at an imported car dealership.“Cho was the

Aug 18, 2015By Park Jin-hai

Companies

Kumho Tire union stages strike against wage system

By Park Jin-haiUnionists of Kumho Tire, the nation’s second-largest tire maker, began their first full-day strike in three years Monday, as labor and management differ on a new peak wage system the company is trying to introduce.About 3,300 workers of Kumho Tire's three production facilities in Gwangju, Gokseong and Pyeongtaek, staged an eight-hour strike.In the annual wage talks, the company says it needs to adopt the peak wage system to raise competitiveness, while the unionists say the wage talks should be separate from the peak wage issue.  Under a peak wage system, employees must accept reduced salaries in return for a guarantee of employment until retirement. The system aims to allow the company to use the money saved to hire young workers.“The company has been destroying the labor-management relationship by enforcing the peak wage system,” said the Kumho Tire chapter of the Korea Metal Workers Union during a press briefing at its Gwangju plant, Monday.“We agree with the good cause of creating jobs for youth, but we think the decision on the new sys

Aug 17, 2015By Park Jin-hai

People & Events

'Korea lags behind in fintech industry'

Lee Suk-geun, a member of the National Economic Advisory CouncilBy Park Jin-haiLee Suk-geun, a member of the National Economic Advisory Council, a consultative body for President Park Geun-hye, said Korea lags behind in the burgeoning fintech field.  “Although what fintech can do is immense, we are slow in adopting it due to skepticism that fintech is just another form of what we have traditionally been doing, coupled with government regulations,” Lee said.Lee, an endowment professor at Sogang Univesity, said the banking industry is now moving to “bankless” services through the Internet and smartphones. Over the decade, while the United Kingdom has embraced fintech and has cut costs by reducing bank branches by 40 percent, Korea has seen only a 2 to 3 percent decrease in branch numbers.Lee graduated summa cum laude from Sogang University, majoring in business administration. Then he completed an MBA course at Chicago University.“Although now none face-to-face transactions make up more than 80 percent of all banking business, banks are hesitant

Aug 13, 2015By Park Jin-hai

Companies

Hyundai, Kia models top in July sales in Russia

By Park Jin-haiHyundai Motor and its affiliate Kia Motors were the two best-selling cars in Russia in July.Hyundai's Accent subcompact, known as the Solaris in Russia, sold 10,251 units in July, up 4.8 percent year-on-year, claiming the top-selling spot, according to the Association of European Business.Kia's Pride subcompact, called the Rio in Russia, came in second with 9,151 cars sold last month, up 33.5 percent from a year earlier, the association said.It is the first time the two were ranked in the top two spots in the world’s largest country.With the collapse of the Russian ruble last year, car manufacturers have been struggling with plunging consumer demand.Global car makers including General Motors have discontinued sales of certain models and have cut investment in the Russian market.In the first seven months of this year, total car sales in Russia were down 35.3 percent from the previous year, at 913,181 cars.However, Hyundai and Kia have maintained their marketing and dealerships, focusing on the strategic models the Solaris and the Rio, in the belief that when the R

Aug 12, 2015By Park Jin-hai

Companies

Volkswagen marketing head leaves for Renault Samsung

By Park Jin-haiBang SilVolkswagen’s first female marketing head Bang Sil is leaving the German carmaker to work for Renault Samsung Motors.Bang, a founding member of Volkswagen Korea in 2005, has been credited for the tremendous growth of the carmaker in the local market over the past decade.During her tenure, the carmaker’s sales have increased from 929 in 2004 to 30,719 in 2014, making Volkswagen Korea one of the fastest growing imported carmakers here.Bang has led the market by introducing small hatchbacks and diesels where big gasoline sedans had previously been dominant.She was promoted to the top marketing position last year.However, in recent months, she became embroiled in a conflict with the German headquarters while her team was under audit. She was suspended for one month in July during the audit over compliance issues, before she handed in her resignation.She will begin working for Renault Samsung from September.Bang majored in textile arts at Ewha Womans’ University and took an MBA course at Korea University.

Aug 12, 2015By Park Jin-hai

Volkswagen marketing head leaves for Renault Samsung

Companies

GM Korea launches Impala flagship sedan

A model poses next to Chevrolet’s full-size flagship Impala sedan during a a launch event at the Shilla Hotel in Seoul, Tuesday. The newest Impala, manufactured in the U.S., will be delivered to local customers from next month. / YonhapBy Park Jin-haiGM Korea has set its sights on expanding its presence in Korea’s full-size sedan segment by launching its flagship Impala with “unprecedented pricing.”“GM Korea is taking an exciting step forward by introducing the best-selling large sedan in U.S. history,” said Sergio Rocha, GM Korea CEO, during the launch event at Shilla Hotel in Seoul, Tuesday. “The Impala’s success in the domestic market will enable us to expand our product portfolio in the upper segment.”The Impala holds an iconic place in General Motors history, having had 10 generational models since its launch in 1958 in the United States. It is one of the carmaker’s best selling models, with accumulated sales of over 16 million cars.The tenth generation Impala comes with either a 2.5-liter or a 3.6-liter engine that pro

Aug 11, 2015By Park Jin-hai

Companies

ASEAN-Korea Center to hold international youth workshop on forest

Kim Young-sun, Secretary General of ASEAN-Korea Centre, gives an opening speech during the 2015 ASEAN-Korea Youth Network Workshop, in Gangwon Province, Monday. / Courtesy of ASEAN-Korea CentreBy Park Jin-haiThe ASEAN-Korea Centre, with the ASEAN-ROK Forest Cooperation, is holding an international workshop to raise awareness of the importance of forests.The event began Monday and will continue until Aug. 18 under the theme “Youth in the Forefront of Forest Conservation in ASEAN and Korea.”Some 100 students from Korea and ASEAN member states will participate in programs here for the first four days and in Indonesia for six days.The annual event began in 2013.“Turning the post-World War II wreckage into a green landscape, Korea is an unprecedented model example in forest recovery while the ASEAN region possesses 20 percent of global forest and is home to 40 percent of total biological species around the world,” a center spokeswoman said. “Youths from the two regions will gather to gain firsthand experience of the success in Korea’s forest enviro

Aug 10, 2015By Park Jin-hai

Companies

Mercedes tops recall list

By Park Jin-haiMercedes Benz topped the recall list of imported cars here, accounting for almost 33 percent of recalls in the first seven months of this year, according to the Korea Transportation Safety Authority (TSA), Monday.Mercedes recalled 34,756 cars during the period.Ford was second with 12,462 vehicles recalled, followed by BMW with 10,992.During the period, 104,928 imported cars, up 68.2 percent from a year earlier, were on the recall list.The Mercedes E250 BlueTec 4MATIC, C200 BlueTec and CL S250 BlueTec 4MATIC were reported to have defective rear seat belts, where the seat belt might unlock during a crash, while the E220 BlueTec and C220 BlueTec have engine oil leaks that could start a fire.Ford Korea’s best-selling Explorer was recalled because door locks may not work properly, increasing the risk of doors opening while vehicles are moving. The Lincoln MKZ, Taurus and Mustang also have been included on the recall list.BMW recalled 10,992 cars (10.5 percent), Nissan 4,123 (3.9 percent) and FCA Korea recalled 3,957 (3.8 percent) Chrysler cars in the January-July

Aug 10, 2015By Park Jin-hai

Companies

Imported tires fast encroach on local market

By Park Jin-haiDespite a protracted economic slump, imported tires are fast encroaching on the local market on the back of the popularity of imported vehicles.Meanwhile, local tire makers are facing the double whammy of slow demand both inside and outside the country.In the first half of this year, nearly 10 percent more tires, or 3.73 million, were imported compared to a year ago, according to the Korea Tire Manufacturers Association.China-made tires represented almost half of all imported tires, selling 1.9 million in the first six months of the year, up 5 percent.Meanwhile, American and German premium brand tires enjoyed brisk sales. American tire companies including Goodyear Tire have seen their sales jump 76.7 percent to 204,000 tires, while Germany’s Continental Tires saw a whopping 206.7 percent sales increase to 261,000 tires during the period.Local experts say that the increasing preference for imported cars can explain the foreign tire makers’ fast market expansion.Hyundai Motor will be using imported tire brands Michelin and Continental for its luxury Equus sed

Aug 9, 2015By Park Jin-hai

Companies

Hyundai Motor forced to cut prices in China

Hyundai Motor’s Tucson SUVBy Park Jin-haiHyundai Motor, which is struggling in China in fierce competition with local brands armed with cheaper prices, has cut its prices by more than 30 percent for its models there.Dongfeng Yueda Kia Motor, a joint venture between Dongfeng Motor Corporation, Kia Motors and Yueda, dropped the price for its Sportage SUVs from Aug. 7 by 50,000 yuan (9.38 million won).It is the first time that the firm has offered such a sizeable discount.So far, the world’s fifth largest carmaker has been slow in providing incentives, because it was aiming to set a premium brand image.Beijing Hyundai also has cut the price of its Tucson SUV by 23,000 yuan.Industry insiders say that Hyundai has thrown this last-resort effort to recover its dwindling market share in the world’s largest automotive market. “It seems that the automaker is trying to steal customers with aggressive pricing, when global carmakers including General Motors and Volkswagen all provide their vehicles at a discount.”Kia Motors’ Sportage SUVHyundai says the pr

Aug 9, 2015By Park Jin-hai

Park Jin-hai

Read more

Hyosung, Kolon clash in luxury car market

Kumho Tire union stages strike against wage system

'Korea lags behind in fintech industry'

Hyundai, Kia models top in July sales in Russia

Volkswagen marketing head leaves for Renault Samsung

GM Korea launches Impala flagship sedan

ASEAN-Korea Center to hold international youth workshop on forest

Mercedes tops recall list

Imported tires fast encroach on local market

Hyundai Motor forced to cut prices in China

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