The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Luxury brands continue hiking prices in Korea

  • 3

    INTERVIEW'One Day Off' star Lee Na-young, director on creating subtle, feel-good series

  • 5

    BTS producer encourages anticipation for future messages from group

  • 7

    Napoli's Kim Min-jae named Serie A's best defender, makes Team of the Season

  • 9

    Pyongyang as lived experience: existentialism and identity in North Korea

  • 11

    US, China trade blame as hopes for military dialogue fade

  • 13

    Defense chiefs of S. Korea, US, Japan to meet in Singapore amid NK threats

  • 15

    House lawmakers urge US to rally allies over China's Micron ban

  • 17

    S. Korea, US agree on joint probe into NK 'space rocket' debris once salvaged: Seoul official

  • 19

    Zelenskyy says Ukraine ready to launch counteroffensive

  • 2

    India train crash kills over 280, injures 900 in one of nation's worst rail disasters

  • 4

    China flags consequences of Yoon's stronger coupling with US, Japan

  • 6

    From hip-hop idols to global superstars, BTS shatters records over decade

  • 8

    Wall Street leaps, nearly escapes its bear market after strong jobs report

  • 10

    'The Roundup: No Way Out' tops 3 mil. admissions

  • 12

    UN official calls out Security Council for inaction on N. Korea

  • 14

    Reasons to talk about North Korea

  • 16

    PHOTOSTrain collision in India

  • 18

    US, Japan, S. Korea aim to share NK missile warning data

  • 20

    EU's top diplomat discusses Ukraine's ammunition needs with S. Korea

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Mon, June 5, 2023 | 08:21
Companies
Nissan, Infiniti pulling out of Korea
Posted : 2020-05-29 16:30
Updated : 2020-05-29 18:44
Baek Byung-yeul
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
The logos of Nissan Motor are seen at the automaker's global headquarter in Yokohama, Japan, Nov. 19, 2018. / AP-Yonhap
The logos of Nissan Motor are seen at the automaker's global headquarter in Yokohama, Japan, Nov. 19, 2018. / AP-Yonhap

Japanese carmaker suffers significant drop in sales

By Baek Byung-yeul

Japanese carmaker Nissan and its luxury brand Infiniti have decided to withdraw from the Korean market stemming from a series of financial blows, including some Koreans' campaign to boycott Japanese products and the COVID-19 pandemic.

In a press statement released Thursday, Nissan Korea said the company had decided to end its operations in the Korean market by December. The brand added it will continue to offer after-sales service until 2028.

After it began to see faltering sales here, there had been speculation that Nissan would exit, but the Korean unit denied this saying the South Korean market was of strategic importance.

Nissan said the withdrawal was part of reorganization efforts. Nissan CEO Makoto Uchida announced a restructuring plan in Yokohama, Japan, the same day, saying the company will focus on its core operations in Japan, China and North America, and exit South Korea and some markets in Southeast Asia. The reorganization effort is aimed at reducing fixed costs by about 300 billion yen ($2.8 billion).

The restructuring measure comes after Nissan faced a massive loss for the 2019 fiscal year. From April 2019 to March 2020, Nissan shifted to a net loss of 671.2 billion yen from a net profit of 319.1 billion yen in fiscal 2018, mostly due to weak demand after the coronavirus outbreak.

Nissan entered the Korean market in 2005, launching its Infiniti luxury brand. The company also released mid-sized sedans under the Nissan brand in 2008. The combined Nissan and Infiniti brands saw sales peak in 2017, with around 9,000 vehicles sold here.

However, numbers started to plummet last year after some consumers began boycotting Japanese goods and services after Tokyo announced tougher restrictions on the exports to Korean firms of materials needed to make semiconductors and displays. This move was in reaction to Seoul's top court ruling in October 2018 that ordered Nippon Steel to compensate surviving South Korean victims of forced wartime labor during World War II.

The boycott has negatively affected sales of Japanese brands here.

GU, a budget fashion brand and sister company of Uniqlo, recently announced the closure of its retail stores in Korea after experiencing a sharp decline in sales due to the boycott and the COVID-19 pandemic. The brand started operations here just before Tokyo announced the export curbs.

However, it remains to be seen how Nissan's exit will affect other Japanese brands such as Toyota and Honda.

Toyota and Lexus made aggressive marketing pushes here, providing discounts of up to 4 million won ($3,232), zero percent financing and free oil changes. Also, on the occasion of the opening of the professional baseball league, the auto giant began airing TV commercials on sports channels.

According to data from the Korea Automobile Importers and Distributors Association, Japanese automakers sold 4,377 cars here in the January to March period, a whopping 62.2 percent decrease year-on-year. Also, Nissan's car sales dropped 41 percent to 813 in the first quarter from 1,384 during the same period in 2019 while Infiniti's sales plunged to 159 from 759.

European and American car brands, on the other hand, saw their sales increase 33.2 percent and 71.4 percent year-on-year, respectively, despite the coronavirus outbreak.

In sales data for April, the five Japanese brands operating here all slipped out of the top 10 best-selling imported cars list. Toyota sold 309 cars, a 62.8 percent decrease year-on-year, Lexus saw a 68.3 percent fall to 461 and Honda took a 68.6 percent decrease to 231. Nissan and Infiniti sold 202 and 56 vehicles, respectively, falls of 34.2 percent and 73.5 percent.


Emailbaekby@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1[LIFE'S OLLE TRAILS 1] How hiking Jeju's 437km of trails changed my life LIFE'S OLLE TRAILS 1How hiking Jeju's 437km of trails changed my life
2Election watchdog under fire for refusing to accept inspection Election watchdog under fire for refusing to accept inspection
3S. Korea, Japan agree to prevent recurrence of maritime disputeS. Korea, Japan agree to prevent recurrence of maritime dispute
4Korea denies discussion with EU on sending ammunition to Ukraine Korea denies discussion with EU on sending ammunition to Ukraine
5Concerns rise over Samsung SDS' growing intra-group transactionsConcerns rise over Samsung SDS' growing intra-group transactions
6Korea sees record-high number of flu patients for late spring Korea sees record-high number of flu patients for late spring
7K-food transforms global culinary industry K-food transforms global culinary industry
8Shipbuilding stocks rally over hope for 'super cycle' Shipbuilding stocks rally over hope for 'super cycle'
9Korean bio firms to seek new opportunities at int'l convention in BostonKorean bio firms to seek new opportunities at int'l convention in Boston
10Public welcomed to rediscover newly demilitarized land in Yongsan Children's Garden Public welcomed to rediscover newly demilitarized land in Yongsan Children's Garden
Top 5 Entertainment News
1Baritone Kim Tae-han wins Queen Elisabeth Competition Baritone Kim Tae-han wins Queen Elisabeth Competition
2Busan Film Festival accepts director Huh Moon-yung's resignation Busan Film Festival accepts director Huh Moon-yung's resignation
3[INTERVIEW] 'One Day Off' star Lee Na-young, director on creating subtle, feel-good series INTERVIEW'One Day Off' star Lee Na-young, director on creating subtle, feel-good series
4'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season 'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season
5How artist Michael Rakowitz resurrects lost past of Iraq through food packaging How artist Michael Rakowitz resurrects lost past of Iraq through food packaging
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group