The Korea Times

Mercedes catching up fast with BMW

By Park Jin-haiVolkswagen Golf GTDBMW new X4Mercedes-Benz CLS 63 AMG 4MATICAudi A3Mercedes-Benz is steadily catching up with BMW and taking a bigger bite out of the local car market.BMW is expected to maintain its position as the top imported car brand, but is facing a fierce challenge to hold onto that title as Mercedes-Benz has fared surprisingly well.This year’s total imported car sales are expected to hit 195,000, a 24 percent increase from last year, according to the Korea Automobile Importers and Distributors Association.BMW is likely to win the honor of top-selling imported car for the fifth straight year since 2009.It sold 33,617 cars as of October, with annual sales forecasted to pass the 40,000 mark by the end of this year.However, BMW’s market share has been slipping over the past number of years, faced with its rival Mercedes increasing its sales.BMW’s annual sales increased from 23,293 in 2011 to 28,152 and 33,066 in 2012 and 2013 respectively; however, its market share dropped from 22.18 percent to 21.51 percent, then 21.13 percent over the same period

Dec 2, 2014By Park Jin-hai

Companies

Hyundai Aslan, Kia K9 cruising

Hyundai Motor president Kim Choong-ho at the launch ceremony for the Aslan premium sedan. / YonhapBy Park Jin-haiThe two luxury sedans that Hyundai and Kia Motors launched to compete with imported German cars are off to a good start.The Aslan, the front-wheel drive flagship sedan launched on Oct. 6, has sold 3,750 units.Initially, Hyundai projected Aslan’s sales target at 6,000 and it sees no major problem attaining the goal.It expects demand for the premium sedan to grow thanks to upcoming reshuffles of executives at major conglomerates toward the end of the year.Hyundai Motor from the onset had said the car, a large luxury sedan that slots in between the Grandeur and Genesis, will make a good corporate executive car.“The fresh demand from newly appointed executives will help us achieve the year-end sales target,” a company official said.Its sister company Kia’s new K9 luxury sedan launched this month and has also been performing well in the market, selling 500 units so far.The car, sold as the K900 and Quoris in overseas markets, is the carmaker's top-end ca

Nov 28, 2014By Park Jin-hai

Companies

Hyundai Motor on path to top global brand

KAMA president says Hyundai to expand presence in US, EuropeBy Park Jin-haiKAMA president Kim Yong-geunHyundai Motor has immense growth potential as it has source technology and globally competitive researchers, says Korea Automobile Manufacturers Association (KAMA) president Kim Yong-geun. “Raising brand value and creating industrial spinout effects is getting more important these days,” he told The Korea Times. “The company’s controversial purchase of KEPCO’s land in southern Seoul will eventually work to raise brand value and strengthen its research capability further."He believes that the long-term positive effects will more than offset the short-term financial burden involved with buying the 80,000 square meters of KEPCO’s land for 10.5 trillion won in September.Kim took office as International Organization of Motor Vehicle Manufacturers (OICA) chairman last month. The international body has 38 automobile manufacturers’ associations as members until October 2016.He is the second Asian to lead the organization, following on from 1991 when

Nov 27, 2014By Park Jin-hai

Companies

'Import car sales to rise in 2015'

By Park Jin-haiThe sales of imported cars in the local market will grow 14.8 percent next year, according to a report by the Korea Automotive Research Institute (KARI) released on Sunday.The research arm of Hyundai Motor Group said foreign cars’ encroachment will grow in 2015, saying, “Appreciation of local currency and free trade agreements will give imported car brands price advantages, drawing more customers to them.”It forecast that imported cars will sell a total of 225,000 units next year.In particular, the sales for environmentally friendly cars such as hybrid cars will become stronger and we will see more Japanese automakers upping their marketing strategies aided by the weak yen.Meanwhile, it also predicted that next year's overall automobile sales will reach a record high of 1.65 million, up 2 percent from this year.The amount is surpassing the 1996 record, when annual sales stood at 1.64 million.KARI said next year's increase will stem from the growing number of older cars on the road that need to be replaced, a rise in demand for SUVs and new vehicles hi

Nov 23, 2014By Park Jin-hai

Companies

Lotte Homeshopping's license may be revoked

By Park Jin-haiShin Heon, former Lotte Homeshopping CEOLotte Homeshopping’s future hangs in the balance as a former senior staff member has received a prison term in its worst bribery scandal.Shin Heon, 60, who headed the television-based retailer Lotte Homeshopping from 2008 to early 2012, has been sentenced to two years in prison by the Seoul Central District Court on Friday for receiving a kickback from suppliers.Following his court sentence, industry watchers say that the chances are high that Lotte Homeshopping may have to exit from the market. Prime Minister Chung Hong-won in his recent meeting with small and medium sized entrepreneurs revealed the government intention to drive homeshopping organizations involved with repeated unfair business practices out of the market.He is accused of receiving cash bribes and expensive paintings from three companies including venture companies and a catalogue maker in return for favorable treatment in homeshopping launching between October 2007 and February of this year. The total amount of the kickbacks amounted to 133 milli

Nov 23, 2014By Park Jin-hai

Lotte Homeshopping's license may be revoked

Companies

Hanwha B&B receives social enterprise certification

Hanwha B&B employees pose next to a sign notifying that the company is a government-certified social enterprise, at its Beans & Berries café, in Seoul, Thursday. / Courtesy of Hanwha GroupBy Park Jin-haiHanwha B&B, Hanwha Group’s delicacy affiliate, has been certified as a “social enterprise” by the Ministry of Labor, the company said Thursday.The company that runs 36 Beans & Berries branches hires some 200 people as all-timers. The company fills 40 percent of them with the socially weak, including those from single parent and low-income families.It is the first time that an affiliate of local conglomerates has been certified as the title.Also, when it purchase ingredients, it uses more than 15 percent from the social enterprises and hold free consulting sessions for some 30 smaller neighborhood cafes a year.  The support program which took place in January and June designated 13 small cafes and provided a total of 2 billion won fund to aid their business.“They all have seen their monthy sales revenues jump 35percent on average from

Nov 20, 2014By Park Jin-hai

Companies

Hyundai Mobis modules lead Hyundai Motor's growth

Workers assemble parts at the second factory opened by Beijing Mobis. Parent company,Hyundai Mobis, the country’s largest auto parts maker, has production facilities in eight countries. Total ignition module production topped 100 million in 2013. / Courtesy of Hyundai MobisBy Park Jin-haiHyundai Mobis, Korea’s largest auto parts maker, has provided a full weight behind Hyundai Motor Group’s ascent overseas.It has developed world’s top quality modules to provide them to Hyundai Motor and Kia Motors.“We have provided the modules that have been inspected through the local quality control system to Hyundai Motor’s overseas markets. By delivering after-sales products in time, we also play the import role of guaranteeing Hyundai cars’ overall quality,” said a company spokesman.It has constantly expanded the supply of chassis modules to Hyundai Motor and its affiliate Kia Motors since 1999 when it started supplying them for certain passenger car lines.Now it develops and manufactures three different modules ― chassis, front-end and cockpi

Nov 20, 2014By Park Jin-hai

Companies

Used car industry protests against new tax system

By Park Jin-haiUsed car dealers say a new government tax measure doubly taxes their incomes and the used car black market to grow.Since 1999, the government has enforced a value added taxation system that levies sales tax less purchase tax on dealers for each used car sold. The purchase deduction rate has been 0.091 percent for 12 years but decreased to 0.08 percent in 2011, while the sales tax rate has remained at 0.091 percent.The problem with the amended tax system, which was announced in August, is that it reduces the purchase deduction rate further to 0.065 percent and 0.047 percent for 2015 and 2017, respectively.“To reflect the principle of taxation, which states that where there is income, there is tax, and to refrain from double taxation, we need to adopt a marginal taxation system for the used car industry,” said lawmaker Yun Ho-jung during a recent discussion on the taxation amendment, which some 450 dealers took part in.Under the current taxation scheme, when a used car dealer sells a vehicle at cost and with no margin, say at 50 million won, he or she should

Nov 20, 2014By Park Jin-hai

Companies

Haitai hits jackpot with new potato chip

By Park Jin-haiHaitai Confectionery & Foods’ new snack is enjoying an unprecedented popularity, with some willing to buy it triple the price at online sites.Its Honey Butter Chip, a potato chip with sweet buttery taste, can’t meet an unexpectedly strong demand, leaving many convenience stores unable to secure enough supply, company officials said.Its retail price is 1,500 won, but it’s trading from 2,000 won to 5,000 won a pack on-line. Despite its higher price tag, people are queuing to buy one.  Since its August launch, the word of mouths fast carried its “superb” taste through social networks, making it Lotte Mart’s best selling potato snack among over 70 potato chips in October.The chip has emerged as the rare hit item for the company since the previous best-selling item “Mychew” taffy came to market a decade ago.The chip’s sales surpassed 5 billion won in three months.Consumers are sharing their episodes about how they get their hands on the popular snack. One with ID: Hodori ― love tweeted that when she wa

Nov 19, 2014By Park Jin-hai

Haitai hits jackpot with new potato chip

Companies

Hyundai Motor, KB Card reach agreement on fee in last minute negotiation

By Park Jin-haiHyundai Motor and KB Kookmin Card have reached an agreement Monday, ending their seven-month dispute over card fees.The representatives of the country's biggest carmaker and the second-biggest card-issuer by market share met on Sunday and have agreed to set the fee rate at 1.5 percent.Under the current policy, Hyundai has to return 1.85 percent of all money paid by a KB cardholder to the card company in fees.Hyundai argued that the rate is "exorbitantly" high, demanding KB to reduce it to 0.7 percent or lower, while the card firm said it cannot adjust it below 1.75 percent, citing various costs needed to keep the policy running.The two companies previously extended their negotiations twice, failing to find common ground due to significant differences over the terms of fees that Hyundai is required to pay to KB.Since the rate is fixed, experts predict it will serve as a barometer for other financing institutions such as Shinhan Card and Samsung Card, whose contracts are expected to be renewed in February and March.It is widely viewed that the two sides reached agreement

Nov 17, 2014By Park Jin-hai

Park Jin-hai

Read more

Mercedes catching up fast with BMW

Hyundai Aslan, Kia K9 cruising

Hyundai Motor on path to top global brand

'Import car sales to rise in 2015'

Lotte Homeshopping's license may be revoked

Hanwha B&B receives social enterprise certification

Hyundai Mobis modules lead Hyundai Motor's growth

Used car industry protests against new tax system

Haitai hits jackpot with new potato chip

Hyundai Motor, KB Card reach agreement on fee in last minute negotiation

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