[THE INVESTOR] Kia Motors, a Hyundai Motor's smaller affiliate said on July 27 it plans to roll out a new sport utility vehicle in China in response to stagnating car sales in the world’s second largest economy. “In China, we will unveil a new SUV, similar to Sorento, next year,” Han Chun-soo, Kia’s chief financial officer, said at the conference call after announcing the Q2 results. “Besides SUVs, we will also include compact cars and the K5 hybrid model in the new lineup to increase presence i

Mobility July 27, 2016

[THE INVESTOR] Kia Motors posted an 18.5 percent increase in second-quarter operating profit, driven by newly launched cars and solid demand in its major markets including the US and Europe. South Korea’s second largest automaker on July 27 reported the April-June operating profit of 770.9 billion won (US$679.20 million), compared with the 650.7 billion won from the same period last year. It is the first time that the company’s operating profit has exceeded the 700 billion-won mark since the sec

Mobility July 27, 2016

[The INVESTOR] The Ministry of Environment said it will revoke certification of Audi and Volkswagen cars that cheated on emission tests on Aug. 2, which would ultimately lead to a sales ban.The Korean unit could also face a hefty penalty of up to 320 billion won (US$281.46 million), the authorities said. A Volkswagen store in southern SeoulAccording to the ministry, the German automaker was able to manipulate the test documents because the VW models that were sold in Korea were different from th

July 26, 2016

[THE INVESTOR] Kia Motors, South Korea’s second-largest automaker, released its new version of compact minivan Carens that features more power, dynamic exterior and affordable price tag on July 26. The new Carens, better known as Ronda in overseas markets, shares the same external dimension with the older model launched in June 2015. “We improved the design of the radiator grille, head lamps, rear lights and wheels to emphasize strong appearance and voluminous body,” a company official said. Kia

Mobility July 26, 2016

 [THE INVESTOR] The import volume of German-made cars in South Korea dropped for the first time in 13 years amid an emission-rigging scandal involving Volkswagen and Audi cars, industry data showed on July 26. The number of German vehicles imported in the January-May period came in at 51,736 units to reflect a 12.7 percent decrease from the same period in 2015, according to the Korea Automobile Importers and Distributors Association. Volkswagen cars are lined up at Pyeongtaek Port. / The Investo

Mobility July 26, 2016

[THE INVESTOR] South Korean shipbuilders are likely to see a profit downturn in the second quarter of the year, hit by the ongoing industry-wide restructuring. Local securities said the nation’s largest three shipyards -- Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering -- will record lackluster quarterly revenues.  DSME headquater in Seoul / The InvestorHyundai Heavy Industries, scheduled to announce its earnings on July 27, is forecast to post an

Industry July 25, 2016

[THE INVESTOR] The Ministry of Environment held a public hearing on July 25, attended by Audi Volkswagen Korea.The hearing -- which was held at the National Institute of Environmental Research -- is to offer Volkswagen’s Korean unit a chance to explain itself regarding the ministry’s recent decision to ban the sales of 79 models of Audi and Volkswagen cars that cheated on emission tests, and also cancel their registration here.The decision, however, has yet to go into effect and will be finalize

Mobility July 25, 2016

[THE INVESTOR] Vietnam’s minimum wage hike is expected to take a heavy toll on big Korean firms such as Samsung and LG that have been beefing up production there due to low labor costs. Currently, the minimum wage for Vietnamese workers ranges between US$108-157 across regions. In the latest wage talks, labor groups asked for an 11 percent increase from next year, while employers resisted, proposing a moderate 4.62 percent raise. LG Electronics Vietnam Haiphong campus“There are over 4,000 Korean

Technology July 25, 2016

[THE INVESTOR] Hanwha Group has launched a new research complex in Seosan, South Chungcheong Province, to nurture local small and medium-sized firms in the field of solar energy. The company, in partnership with the South Chungcheong Creative Economy Innovation Center, jointly opened the Seosan Solar Energy-Specialized Venture Complex on July 22. With an area of 16,529 square-meter, the new center will attract SMEs in the field of solar energy to foster their R&D activities and commercialize its

Industry July 22, 2016

[THE INVESTOR] Audi Volkswagen Korea has decided to stop selling certain vehicles that cheated on emission tests in South Korea, local news reported Thursday. The Korean unit informed local dealers of its decision to suspend from Monday the sales of 79 models of cars,  including top-selling ones such as the Volkswagen Golf, Jetta and the Audi A4. Volkswagen GolfThe Ministry of Environment had earlier issued an order to ban sales and cancel the registration of VW’s diesel and gasoline engine vehi

Mobility July 22, 2016

[THE INVESTOR] The Seoul City government announced on July 21 that it will raise the subsidies for electrical vehicle owners by 2 million won (US$ 1,758) to boost sales. A resident who purchases a new electric vehicle will now receive 18.5 million won in assistance, up from 16.5 million won, the Seoul Metropolitan Government said. Hyundai Motor EV Ioniq / Hyundai MotorCorporate buyers will get 14 million won, up from 12 million won, while rental and leasing firms will earn 18.5 million won, a hi

Mobility July 21, 2016

[THE INVESTOR] Automakers are rolling out special edition cars for the summer, according to the industry on July 21.Hyundai Motor, South Korea’s largest automaker, recently released a special edition of its midsize sedan Sonata, which will go on sale until October. The special edition is installed with ventilated seats and a dual air conditioning system for driver and passengers to enjoy the cool ride under the scorching sun. The new Sonata features automatic defogging system to detect fog and m

Mobility July 21, 2016

[THE INVESTOR] Hyundai Mobis, South Korea’s largest automotive parts supplier, has decided to recall 120,000 car air-conditioning filters after octylisothiazolinone, a toxic chemical substance, was detected, the company said on July 21.“We decided to pull every product from the shelf to put our customers at ease,” the company said. On July 20, the Ministry of Environment released a list of filters containing OIT levels that may be harmful. These filters, which were mostly manufactured by 3M, wer

Mobility July 21, 2016

[THE INVESTOR] Creditors, led by the state-run Korea Development Bank, plans on giving some breathing room to Hanjin Shipping to stay afloat, by extending the due date of its corporate rehabilitation program. KDB and other banks will convene a meeting sometime this week to extend the initial Aug. 4 deadline by a month for Hanjin Shipping, according to sources.  The move will help the ailing shipper to gain more time to improve its financial status to avoid court receivership. Earlier in May, the

Industry July 21, 2016