Economy, Auto
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South Korean Car Exports Fall 13%

South Korean Car Exports Fall 13%South Korean Car Exports Fall 13%

South Korea's automobile exports fell more than 13% in the first six months of the year, weighed down by falling demand from emerging markets, data showed on July 10.

South Korean carmakers shipped 1.33 million vehicles abroad during the first half of the year. The figure is 13.3% lower than that recorded during the same period of last year, according to Investor.

The government said the decrease followed the sluggish growth in emerging markets, such as the Middle East, and the Central and South Americas.

Overseas shipments to the Middle East tumbled 40.3% on-year and to the Central and South Americas decreased 15.3% on-year.

Auto sales to the Middle East are likely to have fallen due to the continuing drop in the oil price with regional economies suffering as a direct result.

However, imports to Iran, which come under the Middle East region are likely to increase in the near future as Korean car makers have said several times they hope to increase their sales in the post-sanctions Iranian auto market.

Auto sales in the domestic market, however, jumped more than 9% in the first half of this year from a year earlier, the data showed, an increase that could be attributable to a temporary tax cut on cars.

The combined sales of automakers operating in South Korea came to 934,864 units in January-June, up 9.1% from a year earlier, according to the data.

Sales of foreign cars in South Korea, meanwhile, were weighed down by a slump of German automaker Volkswagen Group in the wake of a widening probe into its emissions scandal here, data showed.

The percentage of imports out of the total was 14% in the period, down 1.2% points from 15.2% a year earlier.

Financialtribune.com