In 2009, with a production of 3.5 million cars, Korea remained one of the biggest manufacturing bases in the world. Furthermore Korea one of the most important sales markets, with 1.4 million sold vehicles.
 
The automotive association KAMA feels very confident about the positive development of the automotive industry in Korea in 2010.
 
Car production in February 2010 climbed 17.1 percent over February 2009 to 277,499 units, this growth being due to the rise in both domestic sales and exports. Year-to-date production leaped 38.5 percent from a year ago.
 
Due to the recovery of consumer confidence and the new model release effect, domestic sales in February 2010 rose by 21.2 percent, amounting to 106,522 units. Domestic orders for the first two months of 2010 jumped 39.7 percent, maintaining the pace of growth.
 
The Korea Automobile Importers and Distributors Association (KAIDA) forecasts the number of new import car registrations in 2010 to be 74,000 units, an increase of approximately 20 percent on 2009.
 
Issues such as the end of government support policies, interest-rate and oil-price increases are still having an effect, but the 2010 import car market is still expected to expand. This is attributed to positive factors such as a recovering economy and stabilized exchange rates, improvements in the market environment, a wider range of low-end and mid-range models, as well as the launch of new brands.
 
Also the fact, that the European Union and South Korea have initiated a free trade agreement (FTA) – the most important ever negotiated between the European Union and a third country – will boost the number of new imported cars. The deal, estimated to be worth up to €19 billion in new trade for EU exporters, will remove virtually all tariffs between the two economies, as well as many non-tariff barriers. It also makes major advances in areas such as intellectual property, procurement, competition policy and trade and sustainable development. The FTA signals an important upgrade of the EU-South Korea relationship, together with a new Framework Agreement.
 
 
Sources:
www.kama.co.kr
www.europa.eu
www.gtai.de
www.kaida.co.kr