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

Small cars favored over compact sedans this year: data

The sales of city cars in South Korea, such as the Spark and the Morning, have remained firm this year on the back of aggressive promotions by automakers, with their combined sales exceeding those of compact sedans, industry data showed Monday.According to the data compiled by 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 cited period.Currently, there are three

June 20, 2016

Global automakers moving on mobility

Global automakers are seeking to transform from mere car manufacturers into transportation providers -- offering diverse auto-related services such as car-sharing and ride-hailing services-- amid growing concerns that self-driving technology may bring down car sales in the future. This year, several auto giants have aligned themselves with tech firms or announced mobility plans, although Korean automakers including Hyundai Motor and Kia Motors have not yet made any big deals in this area. Early

June 19, 2016

Authorities to wrap up probe on humidifier sterilizer cases

[THE INVESTOR] South Korean prosecutors will be wrapping up the five-month investigation into toxic humidifier disinfectants that left at least 140 dead and hundreds more affected since 2011, according to officials on Sunday.The special probe team of Seoul Central District Prosecutors Office is expected to press charges against some 20 people related to the incident, including 12 already arrested on charges varying from professional negligence to false advertising that products were safe. The su

June 19, 2016

Lotte brothers prepare for showdown in Japan amid probe

[THE INVESTOR] Amid the widening investigation into Lotte Group, a fresh round of fraternal conflict between Lotte chairman Shin Dong-bin and his brother Shin Dong-joo is expected to take place on June 25 at a shareholders’ meeting of the Tokyo-based Lotte Holdings that controls Hotel Lotte, the de facto holding company of its Korea operations. Shin Dong-joo is expected to propose a motion to oust his brother and incumbent chairman Dong-bin who controls Lotte’s Korea and Japan operations. Shin D

June 19, 2016

More consumers reaching for affordable wines

[THE INVESTOR] Wine has found a new place in the lifestyles of Korean consumers who increasingly see it as a casual drink for everyday enjoyment due to falling prices and growing accessibility.According to the Korea International Trade Association, wine imports last year reached $189.8 million, surpassing the value of imported whisky for the first time. New trends indicate that much of the growth was fueled by Korean consumers’ increasing preference for affordable wines to enjoy at home. The vol

June 19, 2016

Hyundai Motor begins offering iPhone-friendly vehicles

South Korea's top automotive group Hyundai Motor Group is beginning to offer Apple's CarPlay system in its vehicles sold here, market observers said Sunday.Hyundai Motor Co., the bigger of the two automakers that make up the world's fifth-largest automotive group, began incorporating CarPlay into the infotainment system of the Hyundai Sonata this month, making it the first vehicle model produced and sold here that is CarPlay-compatible, according to the market observers.Apple CarPlay is a system

June 19, 2016

[LOTTE CRISIS] Five major allegations against Lotte

[THE INVESTOR] Prosecutors are focusing on five main allegations against Lotte Group in their probe on the nation’s fifth largest conglomerate. 1. Shin Kyuk-ho and Shin Dong-bin’s 30 billion won (US$25.6 million)Prosecutors on June 16 secured testimony that Lotte group founder Shin Kyuk-ho and his son -- current group chairman Shin Dong-bin -- had collected 10 billion won and 20 billion won, respectively, from the affiliates under the conglomerate. The two Shins asserted that the amount was for

June 19, 2016

Lotte founder moves hospital amid escalating probe

[THE INVESTOR] Lotte Group founder Shin Kyuk-ho was transferred to another hospitals on June 18 amid prosecutors’ escalating probe into the retail and food giant. According to news reports, the 93-year-old was admitted to Asan Medical Center earlier in the day from Seoul National University Hospital where he had been hospitalized since Jun 9 due to high fever. Lotte Group founder Shin Kyuk-hoAn official close to his eldest son Shin Dong-joo was quoted as saying that there was medical opinion tha

June 19, 2016

Prosecutors say VW’s HQ ordered emissions manipulation

[THE INVESTOR] German carmaker Volkswagen’s headquarters ordered the manipulation of emissions tests for vehicles imported into Korea, Seoul prosecutors said on June 17. The investigators have secured evidence that German officials ordered the manipulation of software in the seventh generation Volkswagen Golf to secure approval from Korea’s National Institute of Environmental Research. Under local laws, all imported cars have to receive approval from the state-run agency of their emission result

June 17, 2016

Hyundai, Kia May sales rise in Europe

[THE INVESTOR] Hyundai Motor Group -- comprising Hyundai Motor and Kia Motors -- saw significant sales rise in Europe in May, a research report showed on June 17. The report by Hana Financial Investment showed that Hyundai Motor’s sales rose 18 percent from the same month last year, while Kia’s figures increased 16 percent. The combined sales of both carmakers rose 17 percent. Tucson.For Hyundai Motor, the compact sport utility vehicle Tucson led the rise with sales jumping 46 percent from a yea

June 17, 2016

Lotte suspected of giving favors to founder’s third wife

[THE INVESTOR] Lotte Group is suspected of giving business favors to a company controlled by its founder’s third wife Seo Mi-kyung, industry watchers said on June 17.Seo is among those being investigated for their involvement in the retail giant’s slush fund allegations. The 57-year-old Seo is the 1977 winner of the group’s Miss Lotte beauty pageant and has a 33-year-old daughter with Lotte founder Shin Kyuk-ho, now 93. Seo came into the limelight recently as prosecutors have widened their probe

June 17, 2016

Cuckoo purifiers’ toxic substance at permitted levels

[THE INVESTOR] Cuckoo Electronics on June 16 said the filters of its purifiers were safe to use after reports showed them using a toxic substance called octylisothiazolinone.Cuckoo said it used one-tenth of government permitted levels to strengthen the filters against viruses and bacteria.However, Cuckoo said it would replace the filters with those that did not use the substance, free of charge, to those who would like a replacement. Cuckoo‘s comments come amid a nationwide uproar over toxic hum

June 16, 2016

[LOTTE CRISIS] Lotte Chemical suspected of stashing slush funds

[THE INVESTOR] Prosecutors suspect Lotte Group’s affiliate Lotte Chemical is behind stashing multibillion won slush funds abroad amid a widening probe into Korea’s fifth largest conglomerates over embezzlement. According to local reports on June 16, Lotte Chemical has reportedly amassed funds by overstating the import price of raw materials and later siphoned off to the group’s executives. Lotte Department Store in central Seoul. The InvestorIn this process, Lotte Chemical stuck a deal with Lott

June 16, 2016

[LOTTE CRISIS] Lotte Japan likely to face probe

[THE INVESTOR] South Korean prosecutors may seek a joint probe with investigators in Japan to expand its investigation into Lotte’s alleged creation of slush funds and embezzlement, according to reports Thursday quoting officials with the prosecution.Lotte’s subsidiaries in Japan are running relatively smaller businesses than the group’s operations in Korea. But when looking at its corporate governance structure, most of Lotte’s affiliates in Korea are being controlled by Tokyo-based Lotte Holdi

June 16, 2016