Europe (EU) & South Korea 2013 Agreement (대한민국 / 大韓民國)
A series of 24 years in the Korean automotive market has ended.
Models pose next to the luxury sedan Hyundai Motor Genesis Prada REUTERS Truth Leem.
South Korea is on track to spend more on European vehicle imports this year it earns in exports in the other direction, for the first time in 24 years, the German brands break the fortress once impregnable Hyundai Motor and its local rivals.
The about-face following a free trade agreement in 2011 the elimination of duties on vehicles from Europe, and tastes change in a once-Patriotic market that foreign cars were sometimes targeted by vandals.
Imports accounted for 3 percent of cars sold in South Korea it was ten years ago and now account for a record 14 percent German cars account for 71 percent of foreign cars sold in South Korea this year, led by BMW luxury Marqués and Mercedes-Benz of Daimler AG.
In the past, Korea late and had to catch up very quickly, so we had to give benefits to domestic enterprises, said Park Hyun-suk, a businessman in his early 40s who lives in the district of Gangnam rich Seoul and leads Mercedes-Benz E-class
But they are smaller companies and we have no obligation to support them, we need to address now free.
In the first nine months of 2014, the value of imports from Europe rose 60 percent to 4 6 billion, customs data showed, against exports 4 4 billion.
The driving force of the imported cars were diesel engines, younger customers in their 30s and luxury brands, said Yoon Dae-sung, an official of the Association of Automobile Importers, anticipating new growth lead mass market, non-German cars.
A free trade deal agreed last week with China excluded cars, help local carmakers avert a potential influx of China-made German brand vehicles and help preserve the status of South Korea as one of the few markets where domestic manufacturers have a dominant hand - for now.
In Gangnam, the epicenter of the explosion of the foreign car, a Volkswagen store does not have enough vehicles for sale, said Kim Young-chun dealer.
We do not take orders for the popular white version Tiguan more because we've got about 70 to 80 orders at our store alone, he said, referring to top-selling import, a 35,000 SUV Korea from South.
And the support of patriotic consumers, Hyundai, its sister company Kia Motors and others such as Ssangyong Motor Co Ltd were once protected by 50 per cent of import duties in the early 1990s, when South Korea had a more protectionist industrial policy, some consumers shunned foreign cars for fear of being the target of fiscal controls.
Trade agreements have helped South Korea is emerging as a source of growth for the global brands that develop offers large vehicles to smaller, threatening to further erode nearly 70 percent market share held by Hyundai and Kia.
U S cars have not won as much as a similar trade agreement with South Korea, the 11th largest car market in the world.
In August, BMW has opened a center to conduct 64 million in Incheon, its first in Asia, which allows visitors to test drive cars BMW and Mini at 2-6 km 1-6-mile track.
Toyota Motor Japan, which imports its Camry sedan in the Southern United States Korea, last month opened a cafe and showplace in Seoul that displays, but does not sell Lexus cars - part of efforts to improve its image Mark.
In the first 10 months of 2014, sales of foreign cars in South Korea rose 33 percent; Hyundai sales rose 3 percent.
Hyundai retaliated last month, it launched its premium sedan Aslan, a rare model targeted mainly to local buyers, and recently opened a flagship store Gangnam Hyundai and Kia are also expanding their diesel and hybrid offers US $ 1 1094 6500 Korean won.
Additional reporting by Sohee Kim; Edited by Tony Munroe and Alex Richardson.
The South Korea Trade Balance Auto Europe, south korea, europe, self.