[Newsmaker] GM union plagued by corruption charges

General Motors Korea has been hit by another setback after the prosecution found some dubious cash flow in the automaker’s recruiting process. Investigators are looking into allegations that some executives and members of the labor union were bribed in exchange for hiring subcontract workers to full-time regular workers. The new revelation came amid ongoing investigations into other corruption charges involved with its suppliers. The Incheon Prosecutor’s Office said earlier this week that it is

June 22, 2016

Hyundai Mobis retains 6th place in world’s auto parts market

[THE INVESTOR] Hyundai Mobis maintained its place as the world’s sixth largest auto parts maker in 2015, industry data showed on June 22. According to the rankings by sales compiled by Automotive News, Hyundai Mobis recorded sales of US$26.262 billion to retain the sixth place for the third consecutive year. The top place was retained by Robert Bosch with US$44.825 billion. Japan’s Denso rose to the second place with US$36.03 billion, followed by Canada’s Magna International with US$32.134 billi

June 22, 2016

Prosecutors seek arrest warrant for VW Korea executive

[THE INVESTOR] Prosecutors on June 21 filed for an arrest warrant for the head of certification unit of Audi Volkswagen Korea over the automaker’s emission rigging scandal. The head, identified by his surname Yoon, has been charged with fabrication of private documents and obstruction of justice, Seoul Central District Prosecutors’ Office said. Yoon is the first executive in the snowballing case for whom prosecutors are seeking an arrest warrant. According to prosecutors, Yoon is suspected of ma

June 22, 2016

Korean authorities scrutinize Euro 6 vehicles in VW emissions probe

[THE INVESTOR] The prosecution team looking into Volkswagen’s emissions manipulation case are now inspecting models advertised as meeting Euro 6 emissions standards, a local daily reported on June 22. According to reports, Seoul Central District Prosecutors’ Office has requested 2015 Audi A1 vehicle to be inspected, making it the first Euro 6 vehicle to be included in the probe.About 280 units of 2015 A1 have already been sold in Korea. The 2015 Audi A1 lineup includes engines shared with 2016 A

June 22, 2016

One household in Korea owns two cars: data

[THE INVESTOR] The number of registered cars in Korea is expected to exceed 20 million units this month, which means each four-person household owns two cars on average, the Ministry of Land, Infrastructure and Transport said on June 21. The current figure at 19,964,178 units could top 20 million within this month, the ministry said, considering the recent growing trend in the number of registered passenger cars here. Hyundai Motor’s brand store in Dosandaero, southern Seoul.Sedan cars totaled 1

June 21, 2016

Hyundai will ‘not delay launching diesel cars’

Hyundai Motor said Tuesday it would not postpone the domestic rollout of its diesel cars despite growing concerns about pollutants from the engine. “We are going to launch diesel models of Genesis EQ900 and G80 as planned,” a senior official of Hyundai Motor told The Korea Herald. Hyundai Motor’s Genesis G80 (Hyundai Motor)The automaker’s denial came amid growing speculation that the rollout of the luxury sedans’ diesel models -- slated for next year -- will be delayed because of local consumers

June 21, 2016

Samsung Electronics launches new automobile lighting package

[THE INVESTOR] Samsung Electronics has launched the Flexible Chip Scale Package for automotive LED lighting, seeking to accelerate its market share, the company said on June 21. The package allows a compact design to be built in a position lamp or a headlamp with wide beam angle and low thermal resistance according to the company.  The company expects the package to cater to automotive lighting that requires huge intensity of radiation based on different usage.  Flexible Chip Scale PackageThe co

June 21, 2016

Korea to fine Volkswagen W80b: report

[THE INVESTOR] Korea’s antitrust agency will fine Volkswagen around 80 billion won (US$ 68.9 million) for deceiving customers with false advertisements in the German automaker’s emission rigging scandal that affected millions of cars globally, including here. The state-run Fair Trade Commission is probing VW’s false advertisement claims, the agency’s head Jeong Jae-chan said in an interview with local media on June 21. The agency has looked into VW’s advertisements from 2009 to 2015, which toute

June 21, 2016

Koreans shifting to second-car ownership: data

The number of registered passenger vehicles in South Korea is expected to top 20 million this month, heralding the advent of the "one household with two cars” era, data showed Tuesday.The number of registered passenger cars here came to 19,964,178 as of the end of May, according to the data compiled by the Ministry of Land, Infrastructure and Transport. Ministry of Land, Infrastructure and Transport (Yonhap)It marked a steady increase from 19.7 million in January, 19.75 million in February, 19.8

June 21, 2016

Tesla set to start sales in Korea

[THE INVESTOR] The US electric car manufacturer Tesla Motors is hiring new staff, including shop manager, sales advisor and software engineer, to work in Seoul, hinting that its first Korean store is imminent. Tesla has long gauged the marketability of full-electric sedans in a market where Hyundai and Kia cars dominate almost 70 percent of total car sales, even though it has continued supply talks with Korean battery and display makers. Tesla Model 3 prototype.In November last year, the firm re

June 21, 2016

Hyundai, Kia merge China departments

[THE INVESTOR] The Chinese operations of Hyundai Motor Group’s two carmakers have been placed under a single control tower as the group seeks to strengthen operations in the world’s largest automotive market. According to the carmakers, Beijing Hyundai Motor, Dongfeng Yueda Kia, and China marketing divisions of Hyundai Motor and Kia Motors have been placed under the body that oversees the group’s operations in China.The organization in charge of the group’s operations in China is headed by Kim T

June 21, 2016

[DECODED: LOTTE] Shin Dong-bin’s battle wages on

[THE INVESTOR] In front of a bank of flashing cameras, Lotte Group chairman Shin Dong-bin took to the witness stand for a parliamentary audit for the first time as a chaebol chief on Sept. 17 last year. The five-hour grilling took place just as the public’s hostility toward Lotte -- including for its national identity, murky governance and bitter fraternal war -- was reaching its climax. Lawmakers were eager to drive him into a corner. But Shin remained outwardly calm even then, though his hands

June 20, 2016

[DECODED: LOTTE] Timeline of Lotte family feud

 

June 20, 2016

[DECODED: LOTTE] Lotte in numbers

  

June 20, 2016

VW gasoline car owners to file criminal charges

Korean owners of Volkswagen’s gasoline vehicles will be seeking criminal charges against the German carmaker for manipulating its software to pass emissions tests, said a legal representative here on Monday. “We are gathering customers to file class-action suits as well as criminal charges against the automaker. (For criminal charges), the system manipulation may cause an engine breakdown, which may lead to physical damages to users,” Ha Jong-sun, a lawyer at Barun that represents those customer

June 20, 2016

Lotte affiliates purchased $192.7m worth of owner family’s shares

[THE INVESTOR] Lotte Group affiliates have frequently purchased stocks of unlisted companies owned by the group’s owner family, including the founder Shin Kyuk-ho and his three children, since 2001, data by an online corporate tracker showed on June 19. According to Chaebul.com, Lotte’s seven affiliates, including Hotel Lotte -- the de facto holding company of its Korea operations -- have spent a total of 224.6 billion won ($192.7 million) to purchase shares of private companies owned by the fou

June 20, 2016

Korea-US FTA boosts US car sales in Korea

[THE INVESTOR] US carmakers’ sales in Korea overtook that of Japan for the first time in 2015, industry data showed on June 20. The change is thought to have been brought on by the Korea-US free trade agreement implemented in 2012. Following the FTA, the tariff on US-built vehicles was initially cut from 8 percent to 4 percent. From this year, the tariff has been completely removed. Ford New kuga 2016.According to Korean and Japanese automobile importers’ associations, US marques’ Korean sales c

June 20, 2016

U.S. sold more cars in Korea than Japan last year

U.S. carmakers sold more cars in South Korea than Japan last year, industry data showed Monday, due mainly to the competitive advantages of the free trade deal between Seoul and Washington.Sales of American cars in South Korea came to 17,501 units last year, compared with 14,623 units of U.S. cars sold in Japan, according to the Korea Automobile Importers and Distributors Association and Japan Automobile Importers Association.It marked the first time that sales of American cars in South Korea ha

June 20, 2016

VW gasoline customers to file criminal charges

[THE INVESTOR] Korean customers of Volkswagen’s gasoline vehicles are set to file criminal charges against Audi Volkswagen Korea. The move comes in the wake of the recent disclosure by prosecutors that the German carmaker rigged software of its gasoline cars to cheat on emission tests, local news reported on June 19. “Following the diesel vehicle scandal, it has been revealed that gasoline cars were also manipulated. We plan to gather victims here and file a lawsuit against Audi Volkswagen Korea

June 20, 2016

City cars favored over compact sedans: data

[THE INVESTOR] City cars, such as the Chevrolet Spark and Kia Morning, are enjoying popularity among Korean drivers as carmakers are offering aggressive promotions to new buyers, industry data showed on June 20. According to the Korea Automobile Manufacturers Association, a total of 72,151 subcompact cars were sold in the country through May this year, compared with 69,978 compact sedans sold during the same period. The best-selling city car Chevrolet Spark.There are three such car models -- the

June 20, 2016