Hyundai to inject W1tr to support auto parts makers amid virus crisis

Hyundai Motor Group said Thursday it has decided to urgently inject 1 trillion won ($847 million) of capital into local small and midsized auto parts makers struggling amid low demand from automakers due to a disruption in parts supply from China. Some 350 companies that supply auto parts to Hyundai Motor, Kia Motors, Hyundai Mobis, Hyundai Wia and Hyundai Transys will be given 692 billion won worth of product payment in advance, as well as 308 billion won of interest-free loans for the automot

Feb. 6, 2020

Korean airlines suspend 60% of flights to China

Fears of the new coronavirus have prompted South Korean air carriers to suspend more than 60 percent of their flights to China as of Thursday, according to industry sources. A total of 58 of the 94 China-bound routes operated by eight Korean carriers have been suspended due to the coronavirus scare.  The airlines have also reduced the number of flights on 25 routes to China, meaning 88 percent of all routes between the two countries have been affected by the outbreak.  The country&

Feb. 6, 2020

Boycott cuts Japanese car imports to S. Korea by half

  Japanese car imports to South Korea halved in the fourth quarter last year as the boycott of Japanese products in the country continued, latest data showed Thursday. The value of imported Japanese cars in South Korea amounted to $203 million in the period, a 51.9 percent drop from $422 million a year earlier, according to data from the Korea Customs Service. The market share of Japanese cars -- which commanded 15.2 percent of total imported cars -- plummeted to 6.2 percent in the same

Feb. 6, 2020

Korean Air to sell assets to regain financial health

Korean Air Lines Co., South Korea's biggest airline and national flag carrier, said Thursday it will sell property and non-core assets to improve its financial status. Korean Air plans to sell its idle property in central Seoul and a non-core business unit to emerge as a financially healthy company amid growing uncertainties in the airline industry, the company said in a statement. The company aims to sell its land and building in Songhyeon-dong and an entire 100 percent stake in Wangsan Lei

Feb. 6, 2020

Virus-caused supply chain disruptions to affect Hyundai: S&P

Supply chain disruptions in China caused by the new coronavirus outbreak will likely hurt the first-quarter performance at Hyundai Motor Co. and Kia Motors Corp., S&P Global Ratings Services has said. In a report released Wednesday, S&P said if the Lunar New Year break in China is not extended beyond Sunday, Hyundai and Kia are expected to normalize Korean production, which accounts for 40-50 percent of total production, in the coming weeks through utilization management. "Howeve

Feb. 6, 2020

Imported car sales fall 3.1% in January as Japanese brands struggle

Sales of imported cars in South Korea fell 3.1 percent in January from a year earlier due to lower demand for Japanese brands amid trade tensions between Seoul and Tokyo, an industry association said Wednesday. The number of newly registered foreign vehicles fell to 17,640 units last month from 18,198 in January 2019, according to the Korea Automobile Importers & Distributors Association. "Local consumer sentiment against Japanese products continued to affect overall imported vehicle

Feb. 5, 2020

Kia to launch entry SUV 'Sonet' in India in H2

Kia Motors Corp., South Korea's second-largest carmaker by sales, said Wednesday it will launch its entry-level sport utility vehicle Sonet in India later this year. Kia unveiled the Sonet concept at the New Delhi Auto Expo, which runs Feb. 5-12. On Wednesday, it launched the localized Carnival multipurpose vehicle in the Indian market, the company said in a statement. The maker of the K5 sedan and the Sorento SUV aims to sell 300,000 vehicles in India in 2022. This year, it has a target of

Feb. 5, 2020

[News Focus] Why automakers are affected most from cascade of factory closures in China

The prolonged outbreak of novel coronavirus has taken a toll on South Korean companies, especially automakers, due to their high dependence on various types of irreplaceable auto parts manufactured in China, according to industry insiders Wednesday. Four of the country’s five major carmakers -- Hyundai Motor, Kia Motors, SsangYong Motor and Renault Samsung Motors -- have decided to temporarily suspend operations at their plants here due to the shortage of a crucial auto part called wirin

Feb. 5, 2020

Renault Samsung Motors seeks competitiveness in customer service

Renault Samsung Motors is bolstering its customer service capabilities to up its game in the Korean auto market despite aggravated market conditions. The carmaker said Wednesday it has become the first among domestic brands to have recently introduced the “RSM Service Menu,” a customer service program where customers can learn about a total expense prior to service. Based on that information, customers can decide which service to receive without having to worry about bills later.

Feb. 5, 2020

S. Korean airlines halt 57% of China routes on coronavirus

A deadly new coronavirus has prompted South Korean airlines to suspend more than half of their flight services to China, industry sources said Tuesday. As of Tuesday, industry leader Korean Air Lines Co. and seven other carriers have temporarily suspended 57 out of their 100 routes to the neighboring country due to the coronavirus scare. The airlines have also decided to reduce flights on 24 routes to Chinese cities, including the capital Beijing. Korean Air, the country‘s national fla

Feb. 4, 2020

Hanjin family sides with son in sibling power struggle

As the power struggle between two siblings of Hanjin Group’s controlling family continues ahead of the upcoming shareholders meeting, their mother and sister, who are major stakeholders, said they backed the brother of the two. In a statement Tuesday, Lee Myung-hee, the mother of the siblings and their youngest sister Hyun-min expressed support for Hanjin Group Chairman Cho Won-tae over his sister Cho Hyun-ah, the former vice president of the airline. “Lee Myung-hee and Cho Hyun-m

Feb. 4, 2020

CJ Logistics launches new headquarters for North America

CJ Logistics, a major South Korean logistics firm, said Tuesday it had launched CJ Logistics America -- a joint operating company of its subsidiaries in the United States and Canada -- and DSC Logistics, to expand the company’s presence in North America. Under the new corporate body, CJ Logistics will operate warehouses of a combined 280,000 square meters in size in the US and Canada, to extend its operating network across North America, the company said. CJ Logistics USA, a subsidiar

Feb. 4, 2020

Local automakers face difficulties sourcing auto parts from China

South Korean automakers are struggling to operate manufacturing lines here following difficulties in sourcing components from China due to the suspension of factory operations in the mainland.  According to Hyundai Motor Group, the automaker has decided to cancel extra working hours at its Ulsan and Jeonju plants this week, following the temporary shutdown of the two partnering factories in China that are responsible for supplying components such as wiring.  To contain the rapidly s

Jan. 31, 2020

[Newsmaker] Despite doctors’ assurances, public uneasy over use of Wuhan evacuation plane

After the government flew the first chartered flight using Korean Air’s B747 to Wuhan and brought 368 South Koreans here on Friday morning, the future use of the plane has come under public scrutiny, despite assurances by doctors about very low possibility of getting infected. According to the real-time air traffic tracker Flight Radar 24, Korean Air’s 22-year-old B747 which has tail number HL7461 was used to evacuate Koreans based in Wuhan, the epicenter of the coronavirus outbrea

Jan. 31, 2020

[Photo News] Asiana Airlines sends relief goods to support Wuhan

Asiana Airlines said Friday that it has sent relief goods including masks and medical products worth 40 million won to support the people in Wuhan, China, as well as authorities’ effort to contain the virus.  The products will be delivered to people in need in China, the air carrier said, adding that it has sent the items on OZ331 flight bound for Beijing and OZ323 bound for Chengdu. By Kim Da-sol (ddd@heraldcorp.com)

Jan. 31, 2020

Hyundai Mobis’ 2019 sales, operating profit inch up

Hyundai Motor Group’s key affiliate Hyundai Mobis said Thursday that its operating profit hit 2.35 trillion won ($1.9 billion) last year, up 16.5 percent year-on-year, according to the auto parts maker’s regulatory filing.  The company’s sales inched up by 8.2 percent to 38.48 trillion won over the same period, while its net profit recorded 2.29 trillion won, up 21.5 percent on-year.  Hyundai Mobis attributed last year’s improved performance to expanded sales

Jan. 30, 2020

Korean Air chief to accompany chartered flight to Wuhan

Hanjin Group Chairman and Korean Air CEO Cho Won-tae will be onboard the chartered flight that the government has arranged to bring back South Korean citizens from Wuhan, China, industry sources said Thursday. The government plans to send chartered flights of Korean Air’s A330 and B747 which can seat around 300 and 400 people, respectively, on Thursday and Friday, to bring back some 700 Koreans from Wuhan, the epicenter of the coronavirus outbreak. The first of the four flights was set

Jan. 30, 2020

Renault executive visits conflict-ridden Busan plant

A senior executive from Renault Group visited the South Korean unit’s manufacturing plant in Busan on Wednesday, amid deepening labor and management conflict and falling productivity at Renault Samsung Motors. According to the South Korean unit of the French automotive group, Renault Group’s Deputy Alliance Executive Vice President Jose Vicente de los Mozos visited the Busan plant and held a meeting with manager-level employees. The company said the trip was part of his tour of Ren

Jan. 29, 2020

Hyundai Wia to supply auto parts to global carmakers under W702b deal

Hyundai Wia said Wednesday that it has clinched a 702 billion won ($596 million) deal with European and US automakers to supply constant-velocity joints (CV joints).  Hyundai Motor Group’s automotive parts manufacturing arm did not disclose the names of the companies, but said that under the deal 55 percent of the parts will be supplied to eco-friendly vehicles. This is its first major deal with overseas carmakers.  CV joints enable a drive shaft to transmit power from the eng

Jan. 29, 2020

Aviation, travel industries count cost of coronavirus outbreak

South Korean aviation and travel industries have been hit hard by refunds and cancellations in response to the new Chinese coronavirus outbreak, according to the industry on Tuesday. Several airlines have suspended the operation of routes to China and fully refunded customers for reservations, without applying the usual surcharge.  The travel authorities and related businesses have also strengthened hygiene guidelines for their employees, such as obligating all cabin crew on flights and

Jan. 28, 2020