Korea emerges as global test bed for chauffeur-driven luxury mobility

Korea is emerging as a key test bed for the global chauffeur-driven luxury vehicle market, as Mercedes-Benz, BMW and Genesis prepare to go head-to-head with flagship models targeting corporate executives and business owners.

The competition is set to intensify in the second half of this year with the launch of the Genesis GV90, the latest Mercedes-Benz S-Class and BMW's 7 Series.

The luxury lineup reflects a major shift in Korea's automotive market where demand for high-end vehicles is expanding beyond mainstream and entry-level segments to some of the world's most expensive cars.

Genesis unveiled the GV90, its first ultra-large flagship electrified SUV, in San Francisco on Wednesday, with a Korean launch scheduled possibly around the fourth quarter.

The luxury automaker under Hyundai Motor Group is positioning the model's four-seat Neolun Executive Suite as a direct challenger in the chauffeur-driven market, traditionally dominated by large luxury sedans.

The top-end GV90 features a wood floor, radiant heating system, refrigerator and table, while the front seats can electrically swivel 180 degrees to face rear passengers. It also adopts pillarless coach doors that open in opposite directions, creating an open and spacious rear cabin.

Mercedes-Benz Korea launched the facelifted S-Class and Mercedes-Maybach S-Class here last week. More than half of their vehicle components — about 2,700 elements — have been newly developed or redesigned, according to the carmaker.

The updated S-Class features a redesigned grille and star-pattern exterior, while its cabin comes with the latest MBUX infotainment system based on Mercedes-Benz's MB.OS operating system.

Demand has already shown signs of strength. Mercedes-Benz Korea said the S-Class and Maybach S-Class had secured more than 2,500 preorders combined in roughly three months since reservations opened in May.

BMW Korea is also preparing to introduce its new 7 Series. The model, first unveiled globally in April, features revised exterior and interior designs and enhanced rear-seat amenities.

The 7 Series also offers a broad range of powertrains, including the fully electric i7, internal combustion engines and plug-in hybrids, giving BMW greater flexibility in the premium chauffeur-driven segment.

The rivalry between BMW and Mercedes-Benz is already intensifying in Korea. According to the Korea Automobile Importers & Distributors Association, BMW sold 3,077 units of the 7 Series in the first half of this year, 1,238 more than the 1,839 S-Class units sold during the same period. The ranking reversed from a year earlier, when the S-Class outsold the 7 Series.

The arrival of the GV90 is expected to further reshape the segment. While the S-Class and 7 Series have traditionally competed through rear-seat comfort and refinement in large sedans, Genesis is bringing SUV space, electrification and a lounge-like cabin concept into the equation.

"The landscape of Korea's chauffeur-driven luxury market — long dominated by sedans — is undergoing a major shift, with the GV90 joining the competition even as a SUV," an official from the industry said.