[News Focus] SsangYong Motor back on the brink after Mahindra scraps investment plan

Indian carmaker Mahindra & Mahindra has rejected a call for fresh funding for its cash-strapped Korean unit SsangYong Motor, leaving its future uncertain after 12 consecutive quarters of losses.  According to the board of directors of Mahindra, which has a 74.65 percent stake in Ssangyong, they held a special meeting in Mumbai on Friday and decided to reject SsangYong Motor’s request to invest 500 billion won ($404 million) over the next three years. Instead, it urged the Korean

April 5, 2020

Air passengers drop to record low in March amid virus woes

The number of air passengers in South Korea fell to a record low last month due to the novel coronavirus pandemic, data showed Sunday, as countries around the globe impose lockdowns and restrict travel and people shun travel. The number of air passengers stood at 1.74 million in March, according to industry data, marking the first time that the figure has fallen below 2 million since the country started to record such statistics from 1997. The passenger number was 10.62 million in January bu

April 5, 2020

Antitrust watchdog approves HDC-Asiana Airlines merger

South Korea’s antitrust watchdog has approved HDC Hyundai Development Company’s acquisition of shares of Asiana Airlines, officials said Friday. HDC signed a deal to acquire 61.5 percent of the airline’s shares on Dec. 27 and reported it to the Fair Trade Commission on Jan. 30. “There is no concern of restricting competition,” after reviewing the effect of the tie-up on competition in related markets, the FTC said. “(We) judged that the major sectors of

April 3, 2020

Airlines call for immediate govt. support on bigger virus impact

South Korean airlines pressed the government Friday to take immediate action to help the financially troubled airline industry stay afloat amid the growing coronavirus impact. The Korea Civil Aviation Association (KCA) asked the government to offer massive low-rate loans, payment guarantees for airlines' corporate bonds and steep tax cuts to airlines as the airlines' self-rescue measures won't be of a big help in the unprecedented crisis. "The airline industry is collapsing, with 840,000

April 3, 2020

Virus-stricken air carriers tighten belts with reconstructing, downsizing

Korean air carriers that have been hit hard by the COVID-19 pandemic are undergoing restructuring to downsize the workforce amid continued losses from reduced passengers and suspensions of international routes, according to industry sources on Thursday. Eastar Jet, a local budget carrier that halted all services from March 23 for a month, said Thursday it will send 45 percent, or 750 employees, of its total workforce home from April 24.  The air carrier said it will first receive applica

April 2, 2020

Korean Air pilots to take 3 months of unpaid leave

Korean Air Lines Co. is set to put all of its non-Korean pilots on a three-month unpaid leave starting next month in a self-rescue effort amid worsening business conditions caused by the coronavirus outbreak. Under the measure, 387 pilots are expected to go on mandatory unpaid leave from April 1 to June 30, an industry source said Tuesday. Around 60 of them have already been off without pay, the source added. "(The measure) is aimed at adjusting workforce following a sharp reduction i

March 31, 2020

Hyundai Motor to open mobility innovation center in Singapore by 2022

Hyundai Motor Group said Tuesday that it would open a mobility innovation center in Singapore to focus on developing and producing future mobility solutions by 2022.  The automaker’s new global lab called Hyundai Mobility Global Innovation Center in Singapore (HMGICs) will be located in Singapore’s Jurong Innovation District, an advanced technology manufacturing hub comprised of tech companies, factories and researchers. The establishment of the automaker’s lab over the

March 31, 2020

Government lifts sanctions against Jin Air amid pandemic crisis

The South Korean government lifted its sanction on budget airline Jin Air on Tuesday, after having prohibited the company from expanding new flight routes and adding new planes for 20 months. The Ministry of Land Infrastructure and Transport said it would remove the sanction against the budget carrier, a move that is seen to reflect the company’s recent efforts for improved management, but also comes in time when the airline industry is into a desperate situation in the wake of the COVI

March 31, 2020

Kumho Tire wins Red Dot Design Award 2020

South Korea’s Kumho Tire said Monday that its Solus 4S HA32 has won the Red Dot Design Award 2020. According to the tire maker, Solus HA32 is specially designed for road conditions in Europe, offering stable driving performance and brake in all four seasons.  By applying high-tech materials and V-shape pattern, Solus HA32’s brake function has improved by 15 percent compared to the previous model, the company said.  Its 3D inter-locking system also makes it easier for a

March 30, 2020

Genesis launches revamped third-generation G80

Hyundai Motor Group said Monday it has launched the third-generation G80 of its luxury brand Genesis.  The latest model has been fully revamped and is 125 kilograms lighter compared to the second-generation model that was launched in 2016, by using aluminum materials.  The all-new G80 is wider by 35 millimeters and lower by 15 millimeters, to show the best proportion as a rear-wheel driving luxury sedan, the automaker said.  Genesis sedans’ signature crest front grille,

March 30, 2020

Hyundai Mobis invests in core future car technologies

Hyundai Mobis said Sunday it would target the global market with future mobility technologies including vision-autonomous driving, connectivity and electrification technology. The auto parts unit under South Korea’s largest auto conglomerate Hyundai Motor Group pledged to develop high-performance sensors for self-driving cars with independent technology within this year. It marks 25 years since its transition to the auto parts business, After developing the country’s first shor

March 29, 2020

IATA urges rescue package for virus-hit S. Korean airlines

The International Air Transport Association (IATA) has called on South Korea to offer a comprehensive rescue package to support local airlines "in grave and immediate danger of insolvency," according to Korean Air Lines Co. on Friday. In a letter sent to President Moon Jae-in this week, IATA, a global trade association for the airline industry, asked the Seoul government to urgently extend direct financial support, loan guarantees by the government, support for corporate bond issuanc

March 27, 2020

Hanjin Group Chairman Cho Won-tae reelected as executive director of Hanjin KAL

Hanjin Group Chairman Cho Won-tae was reappointed as executive director of Hanjin KAL, the holding company of Hanjin Group that owns Korean Air, on Friday, a much anticipated result despite a monthslong tug-of-war with his sister Cho Hyun-ah over the management control. According to Hanjin KAL, Cho garnered 56 percent approval during the shareholders meeting held at Hanjin KAL headquarters in Seoul on Friday. About 43 percent were against him holding the post.  Despite concerns to mainta

March 27, 2020

Hyundai Motor Group promotes Kia’ vice president, appoints foreign leaders

Hyundai Motor Group said Friday that it has promoted Kia Motors Vice President Song Ho-sung to president and appointed Jochen Paesen to lead Kia Motors’ interior design team as a director. The company said the latest executive reshuffle is to execute the company’s future mobility vision and bring change to the current leadership.  President Song had previously led the automaker’s export sales, European sales and global business management teams, the company said. He is

March 27, 2020

Hyundai Motor, Aptiv complete deal for autonomous driving

Hyundai Motor Group said Friday that it has completed the establishment of a 50:50 joint venture with the US software developer of autonomous vehicles Aptiv. The headquarters of the joint venture will be set up in Boston, Massachusetts, and it will run research centers in both the US and Asia, the company said, adding that the company mission will be announced in the near future. In September last year, Hyundai Motor Group clinched a deal with Aptiv, formerly known as Delphi, for a $4 billion

March 27, 2020

Incheon airport goes into 'emergency mode' as COVID-19 causes drop in users

Incheon International Airport, South Korea's main air hub, went into "emergency mode" as the number of users nosedived amid the novel coronavirus outbreak that has spread around the world, the operator said Thursday.    The operator of the airport located in Incheon, 60 kilometers west of Seoul, said it is currently handling some 10,000 passengers per day, down from the normal 200,000 it processed before the pandemic paralyzed travel.    "An emergency situat

March 26, 2020

Hyundai Mobis' roof air bag gains US attention

Hyundai Mobis said Thursday that its air bag that ejects out from the sunroof has been evaluated and shared by the US National Highway Traffic Safety Administration. The first kind to be invented in the world, according to the firm, the roof air bag is unfolded when a vehicle is flipped over during an accident. It can cover the entire roof in 0.08 seconds, aimed at protecting passengers inside the car from being ejected out of the sunroof. The new system involves 24 patented technologies and h

March 26, 2020

Preorders for Hyundai’s new Avante accelerate on first day

Hyundai Motor said Thursday its steady-selling sedan Avante’s latest model has received 10,058 preorders on the first day of reservation. The number is double the average monthly sales figure of Avante, as well as nine times more than the preorders for sixth-generation Avante, the company said.  It is also beats the past preorder record of the first-generation Avante -- which was named Elantra. The automaker said the number is meaningful amid the sharply falling consumer demand fo

March 26, 2020

Porsche Korea donates W649m for children’s dreams

Porsche Korea said Thursday it has donated 649 million won ($527,000) to ChildFund Korea to continue its social contribution efforts in the country. The company has signed a memorandum of understating with the social welfare foundation and delivered the donation to build on its “Porsche Do Dream” campaign, which has been running for four years. “For the past four years, Porsche Korea has endeavored to create an environment where Korean children can follow and fulfill their

March 26, 2020

FCA Korea President Pablo Rosso tapped as KAIDA chairman

Pablo Rosso, president and managing director of Fiat Chrysler Automobiles Korea, has been appointed as the 13th chairman of the Korea Automobile Importers & Distributors Association, according to the association on Wednesday.  He will be the first foreign chairman and serve a two-year term from April.  The association said that Rosso’s wide understanding and experience in the imported car industry had been considered to solve the tasks the industry now faces. “The i

March 25, 2020