Several investors submit LOIs for budget carrier Eastar

Financially troubled budget carrier Eastar Jet Co. has received letters of intent (LOIs) from some investors for its stake up for sale and will select a final bidder next month. Easter Jet, currently under a court-led rehabilitation scheme, has received LOIs from several companies, including a consortium led by Kanglim, a local equipment maker under underwear company Ssang Bang Wool, and other private equity funds, according to industry sources.   The budget carrier selected a preli

May 31, 2021

FTC orders Ford to correct false marketing claim

Ford Sales and Service Korea received a correction order from the Fair Trade Commission for misrepresenting one of its vehicles as having a rear braking support system, the watchdog agency said Monday. According to the FTC, the importer and seller of the US-based Ford advertised in 2019 that its sport utility vehicle the Ford Explorer Limited was equipped with a reverse braking system, which was not true. In brochures and on its official website, the automaker had said the function helped t

May 31, 2021

Hyundai, Kia's eco-friendly car exports up 47% in Jan.-April

Hyundai Motor Group's eco-friendly vehicle exports jumped 46.6 percent in the first four months of this year compared with a year earlier, led by robust demand for its electric vehicle (EVs) and hybrid models, industry data showed Monday. The combined exports of eco-friendly models by the Korean automotive group's two affiliates -- Hyundai Motor Co. and Kia Corp. -- stood at 118,321 units in the January-April period, up from 80,689 units a year ago, according to the data by the Korean Automobi

May 31, 2021

Audi Volkswagen Korea promises to go net zero by 2050

Audi Volkswagen Korea is committed to going net zero by 2050 and hopes to set an example for the car industry, the automaker said Friday. In a press conference, Audi Volkswagen Korea Group Managing Director Rene Koneberg said pursuing carbon neutrality is a task that everyone should work together to achieve. To highlight the seriousness of the climate change issue and the importance of reducing our carbon footprint, Audi Volkswagen Korea has also opened an exhibition titled “goTOzero&r

May 31, 2021

Kumho Tire aims to lead local tire market with SOLUS TA51

Kumho Tire is looking to bolster its share of the local tire market with its latest all-season model SOLUS TA51, launched in April. SOLUS TA51 is the tire maker’s first new product in three years, and comes in 34 different sizes, ranging from 16 inches to 19 inches. The tire product will be compatible with most car models in the local market, the company explained. It is a Korean market-only model. It is specially designed to be suitable for use in different weather conditions across

May 30, 2021

BMW Korea boosts benefits for its premium members

BMW Korea plans to add more benefits to its existing premium membership program provided to owners of its Luxury Class models, the global carmaker announced Thursday. For members of the BMW Excellence Club -- made up of owners of BMW’s New 7 Series, New 8 Series and the New X7 model -- the company is expanding its rental car service, which was previously only available in the southern island of Jeju. Beginning in August, BMW Excellence Club members can borrow a BMW X7 for 72 hours for

May 27, 2021

[Behind the Wheel] Solid family vehicle Volvo XC90 made more eco-friendly with B6 engine

Volvo Cars Korea was once one of the back markers in South Korea’s automotive market, but it has emerged as a force to be reckoned with in recent years, thanks to its reputation for safety. As cases accumulated over time that highlighted Volvo cars’ strength, the automaker’s sales, which were still below 2,000 units in 2013, have surpassed the 10,000-unit mark for two years running, setting a new sales record of 12,798 units in 2020. Now, the automaker is charging ahead for

May 27, 2021

LG Innotek recognized for product quality by global car maker

LG Innotek, LG Group’s materials and components maker, received the Jaguar Land Rover Quality Certificate from the global car maker, the company announced Wednesday. 　 Jaguar Land Rover awards a quality excellence certificate to one supplier every year based on quality and the supplier’s adherence to delivery schedule.　 LG Innotek has been supplying a DC-DC converter product to the automaker since 2017. A DC-DC converter is a key component used in hybrid and electric cars. 　 This

May 26, 2021

Genesis G80 earns top safety award from IIHS

South Korean luxury car brand Genesis' G80 sedan has earned the highest safety rating from the Insurance Institute for Highway Safety (IIHS), the US auto safety organization said Wednesday. The G80 earned TOP SAFETY PICK+ by qualifying for a wide range of IIHS collision tests, including front crash prevention in vehicle-to-vehicle crashes and pedestrian front crash prevention, the US institute said on its website. To qualify for the IIHS' highest safety rating, a vehicle has to earn a high sc

May 26, 2021

Kia to again suspend US plant over chip shortage

Kia Corp., South Korea's No. 2 carmaker, plans to suspend its factory in the United States for two days later this week due to a semiconductor shortage, company officials said Monday. Kia plans to idle its assembly line in Georgia from Thursday to Friday over a chip shortage, following its two-day factory suspension last month, they said. The Georgia plant, which produces the Telluride, Sorento SUV and K5 sedan, rolled out 70,600 units in the first three months of this year. Kia halted produc

May 24, 2021

[Behind the Wheel] Limited-edition Maserati Levante S made more luxurious with Italian leather

What completes a perfect ride relies not only on the car’s driving performance, but also how it instills a sense of self-worth and pride in the driver, people here often say. Luxury Italian automaker Maserati’s sport utility vehicle Levante S ticks all of those boxes, naturally catching the eyes of passersby with its classy, yet powerful aura. The Korea Herald had the chance to test drive the Maserati Levante S GranSport Zegna Pelletessuta, the limited edition model whose interi

May 20, 2021

SK Innovation, Ford to announce EV battery joint venture in US: sources

South Korean battery maker SK Innovation Co. and American automaker Ford Motor Co. are set to announce a battery joint venture in the United States to ensure a stable supply of batteries for electric vehicles, industry sources said Thursday. The two companies plan to announce a memorandum of understanding on the joint venture later in the day, as South Korean President Moon Jae-in meets with US President Joe Biden in Washington this week to discuss bilateral issues, including EV industry coope

May 20, 2021

All S. Korean airlines except Korean Air post Q1 operating losses for first quarter

All South Korean airlines except Korean Air suffered operating losses during the first quarter of this year, as the coronavirus pandemic, which dealt a particularly severe blow to budget airlines, shows no sign of stopping soon. Asiana Airlines posted an operating loss of 11.2 billion won ($10 million) and a net loss of 230.4 billion won on Monday, though the losses narrowed compared to the same time a year ago. The country’s second-largest airline saw its revenue drop by 30.6 percent co

May 18, 2021

Han Sung Motor rolls out third signature perfume

Han Sung Motor, the largest Mercedes-Benz dealer here, presented its third signature perfume, Passion Mystique, as part of efforts to better connect with its customers, the company said Monday. To create a new brand experience, Han Sung Motor has sought to link its unique fragrances with the brand’s identity, and launched its first signature perfume Hansung Interior Fragrance in 2015 upon the company’s 30th anniversary. The company released Han Sung No. 2 in the following year. A

May 18, 2021

Budget carriers suffer extended losses in Q1 over prolonged pandemic slump

South Korea's low-cost carriers suffered an extended loss in the first quarter as the coronavirus continued to weigh on travel demand, data showed Tuesday, raising concerns over their ability to stay afloat even after the pandemic. Budget carriers have grounded most of their flights on international routes since early 2020 as many countries placed restrictions amid virus fears, facing cutthroat competition for cheap domestic flights. While the nation's full-service carriers have managed to ma

May 18, 2021

Korea Airports Corp. ‘on course’ to lead airport expansion project in Laos

Korea Airports Corp. said on Monday that it is on course to lead a project worth 100 billion won ($88.2 million) to expand Luang Prabang International Airport in Laos. Once the ongoing deal is finalized, the move will see the public enterprise behind Gimpo and Jeju International Airports become a first in the country to pursue such a project in the Southeast Asian country. “Amid the prolonged coronavirus crisis and hardships surrounding it, we are honored to announce our foray into succe

May 17, 2021

Air carriers to raise fuel surcharges on int'l routes in June

South Korean airlines will raise fuel surcharges on international routes next month amid rising jet fuel prices, industry sources said Monday. Starting June 1, the surcharge for one-way tickets on international routes will range from 3,600 won ($3.20) to 20,400 won depending on the routes, according to the sources. The amount is up one level from the band of 1,200 won to 9,600 won for this month. Rising jet fuel prices prompted local air carriers to begin imposing fuel surcharges in April af

May 17, 2021

Budget carrier Eastar begins auction to find investor

Financially troubled budget carrier Eastar Jet said Monday it has begun an open auction to find an investor after selecting a preliminary preferred investor last week. In the open bid, Eastar Jet plans to receive letters of intent from interested companies by June 14 and select a final investor afterward, Eastar Chief Executive Kim You-sang said over the phone. On Friday, Eastar signed a contract with an unidentified local investor and obtained approval for the preliminary deal from the Seoul

May 17, 2021

Hyundai signs deal to export 500 Palisade SUVs to Congo

Hyundai Motor Co., South Korea's biggest carmaker, said Sunday it has signed a deal with the Democratic Republic of Congo to export 500 Palisade sport utility vehicles as part of its export diversification strategy. Of the 500 Palisades, Hyundai shipped 250 units to the African country on Saturday, with the remaining 250 set to be delivered in late July, the company said in a statement. The export volume is sharply up from 45 vehicles the company exported to the central African country last

May 16, 2021

Eastar Jet founder indicted on charges of embezzlement, breach of trust

Prosecutors on Friday indicted the founder of cash-strapped budget carrier Eastar Jet for embezzlement and breach of trust. Lee Sang-jik, an independent lawmaker, faces several charges including causing about 43.9 billion won (US$38.8 million) in losses to the airline by underselling company shares to a subsidiary owned by his children in 2015. He is also suspected of embezzling about 5.3 billion won from its affiliates. Lee was arrested late last month, after the National Assembly passed a

May 14, 2021