The Korea Times

Sport utility vehicle boom gaining speed

By Park Jin-haiThe annual sales of sport utility vehicles have passed 300,000 for the first time, according to the Korea Automobile Manufacturers Association (KAMA) Monday.Domestic sales of SUVs by five local carmakers stood at 300,475 in the first 11 months of the year, KAMA said.The figure exceeds the previous record of 297,594 registered in 2002.The local market share for the leisure-oriented vehicle shot up to take 27.8 percent of the overall automotive market, the largest portion ever."Consumers' preference for SUVs or minivans for outdoor activities instead of other family-friendly sedans has become more evident," an industry official said. “SUVs will continue to enjoy stronger demand.”SUV sales peaked 10 years ago, accounting for 30.6 percent of all cars sold in the country.However, they have since slowly lost market share with annual sales falling as low as 168,520 in 2008 when consumers turned to sedans that had better fuel economy and a wider selection of new models.They made a comeback in 2009, when Hyundai Motor launched its Tucson ix. Together with the l

Dec 8, 2014By Park Jin-hai

Companies

'Hyundai Motor has upward potential

James YoonBNP Paribas analystBy Park Jin-haiHyundai Motor shares are expected to perform strongly based on a positive earnings outlook and its moves to strengthen shareholder value, an industry analyst said.Its stock recently took a severe beating following its decision to spend $10 billion to purchase a land in southern Seoul for its new headquarters. A weaker yen also negatively affected the company, as it makes Japanese vehicles cheaper in overseas markets.However, analyst James Yoon at BNP Paribas in Seoul said Hyundai’s efforts to improve shareholder returns will help the company boost investor confidence.“Hyundai Motor has evolved from being a high-growth stock to a deep-value play with proven sustainability of a higher operating margin,” Yoon said.Hyundai and its affiliate Kia Motors recently announced that they will buy back shares worth a total of 670 billion won. Hyundai has been under pressure by its bigger shareholders to improve corporate governance after the land deal negatively affected the stock.“We think this would raise investor return t

Dec 8, 2014By Park Jin-hai

Companies

Samsung C&T expands global presence in LNG storage field

Singapore’s first LNG terminal on Jurong Island, which Samsung C&T completed in March. The company has built three 180,000 cubic meter tanks and dispatch facilities at the terminal since 2010. / Courtesy of Samsung C&TBy Park Jin-haiSamsung C&T has emerged as a global player in the construction of liquefied natural gas (LNG) terminals.The construction and trading arm of Samsung Group in recent years has successively secured a series of major LNG terminal projects in Singapore and Malaysia"As Southeast Asia's energy demands rise, we see huge potential in the LNG storage facilities market," said a company spokesman.This year alone, the company has won four overseas LNG storage tank and terminal construction projects, including Singapore’s first liquefied natural gas terminal expansion project in August.In March, the company successively completed the first and second phases of the $1 billion project, whereby it has built three 180,000 cubic meter tanks and dispatch facilities at the terminal since 2010. “The most challenging part was building the insi

Dec 8, 2014By Park Jin-hai

Companies

Luxury with passionate sportness

Mercedes claims design icon with new CLS-classBy Park Jin-haiMercedes-Benz, which led the four-door coupe segment with the CLS class, has given the 2015 models model a sexier and sleeker look.The refreshed second-generation CLS has more elements befitting its name CLS ― a short for “chic, luxurious and sophisticated.”Its design has been retouched with a honed front section, while interior details and technological features have been upgraded.For the 2015 model, the German carmaker employs a futuristic multibeam LED headlamp for the first time.The high-performance, precision intelligent light system comprised of individually controlled 24 LED lights automatically provides the best possible illumination, whatever the road and traffic conditions.Yet it is not a volume sales model such as the E-class or S-class, the CLS shares the dynamism and elegance of a coupe with the comfort and functionality of a sedan.Local sales have been rising steadily for the car, whose chief designer Gorden Wagener allegedly once said would make observers “kneel.”A total

Dec 7, 2014By Park Jin-hai

Companies

Renault Samsung aims high with new QM3

Renault Samsung Motors SUV QM3By Park Jin-haiRenault Samsung Motors has unveiled an upgraded version of its popular compact SUV QM3, and is hopeful the model will boost sales.The new QM3 has beefed up its features and design options, but the price will rise only a little.Features include an optional removable natural leather seat and an added marine blue color for the bodywork. The electric folding outside mirrors, parking sensor and safety power window provided as options in the previous model have been maintained as basics.“It is our answer to customers’ calls over the past year following the launch of QM3 in Korea,” a company spokesman said. “The removable natural leather seat option is available only for Korean customers.”The vehicle’s decal design is simpler and sharper, while the interior features design elements from the European Captur model.“Customers can choose their seat color from orange, blue and black, matching with its body. It adds more personality to the car,” the spokesman said.   Apart from the outstanding f

Dec 3, 2014By Park Jin-hai

Companies

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

Park Jin-hai

Read more

Sport utility vehicle boom gaining speed

'Hyundai Motor has upward potential

Samsung C&T expands global presence in LNG storage field

Luxury with passionate sportness

Renault Samsung aims high with new QM3

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

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