BMW Chairman stresses importance of Korean market

BMW Chairman Harald Krueger, left, and BMW Korea CEO Kim Hyo-joon speak during a meeting with the Korean media at the Grand Hyatt Seoul. / Courtesy of BMW Korea

By Park Jin-hai

Harald Krueger, chairman of BMW, chose to come to Korea this week rather than attend the North American International Auto Show in Detroit. Krueger came here Monday as his first overseas destination this year to encourage and inspire BMW Korea Group.

He announced BMW’s six-year consecutive global sales record hours before the international motor show began. “BMW Korea has played an important role in this success,” he said during a meeting with some 20 local media outlets at the Grand Hyatt Hotel in Seoul.

“In only 15 years, sales have risen from less than 2,000 vehicles to more than 55,000 in 2015. In my eyes that is quite an achievement. Korea is now our 8th largest market,” he added.

Established in 1995 as the first fully-owned subsidiary of a foreign automotive brand, BMW Korea marked its 20th anniversary last year. BMW remained the best- seller in the imported car segment here for the seventh year in a row last year.

“Customers in Korea are discerning and extremely brand conscious. So you can learn about future innovations here. If you are successful and No. 1 in this market, you’re also No.1 in the world,” he said.

Kruger said BMW’s partnership with its Korean partners is firmer than ever and will stand strong in the future. Currently BMW Korea is cooperating with Samsung in the battery and cell sectors.

“We have good cooperation with Samsung in batteries and cells. We will continue our long-term cooperation through this partnership in the years to come as the partnership will become more important as electro mobility increases,” he said. “We are also in contact with other Korean companies. There are good suppliers here and that is why we set up an R&D Center here last year to be closer to our partners in Korea.”

Noting that Korean partners and suppliers are very competitive and highly driven by innovations and technology, the chairman added that the German carmaker has expanded its partnerships with Korean companies.

“We have been focusing on batteries, displays and high tech electronics. But, we have also expanded cooperation with our Korean partners in conventional areas of breaking and steering,” he said.

BMW Group has 22 Korean companies as tier-1 suppliers, whose accumulated exports in the following four years is forecast to amount to 8.2 trillion won, according to the company.

BMW Korea established Asia’s first BMW Driving Center in 2014 and its fifth R&D Center in the world here last year.

The company says it plans to invest a total of 215 billion won in Korea, aiming to maintain its market leadership and create more value.

BMW Korea, employing 4,500, will grow to have 5,500 this year. Its R&D Center will receive a 20 billion won additional investment; its automotive parts center will be expanded with an investment of 130 billion; 20 billion won was invested in its vehicle distribution center; and BMW Complex, slated to be established in Songdo in 2017, will receive a 45 billion won investment.