'The Korean "betrayed" Hyundai?

'Kim Sung Eun, online marketing staff did not even look at the Hyundai when you want to buy a new car because she said that the car is not related to patriotism and purely personal decision.Capital Camry sedan is quiet win the affection of a large number of customers around the world, with more than 14 million units shipped in 1982. But automotive journalists in South voted Car of the Year is another story.
Changing views on foreign goods in Korea, the free trade agreements and stronger currency contributed to the market share of imports reached record levels in the fourth largest market in Asia. With Toyota, annual volume of goods loaded on board the equivalent of what they do for customers in the Hawaiian Islands. As for Hyundai and Kia, is the breakup of the biggest profit centers, global sales and the appreciation of the Korean won negatively.

            In the main competition at home, Hyundai, Toyota is being threatened. Photo: Autoguide."In the past, the Korean people choose what they wear, they use, or what car they drive from the South Korean-made. But if you look into Seoul today, will see young people buying of imported brands, and they are selected by quality ", Takeshi Miyao, a business analyst at the research center Japan Carnorama comment.
For example, given that Kim Sung Eun, the 27-year-old online marketing professional in Seoul: "I do not even pass the Hyundai car when looking to buy a new car this winter. I do not think my car it has nothing to do with patriotism. It's just a personal choice. "
In Kim's case, it's a choice between two models of the Toyota: Prius and Camry. Also the Camry beat out 44 other competitors, including product ever win the previous year Hyundai and Kia, to become the first vehicles enter the Korean automobile journalists association honored.
The entry of foreign companies today is almost impossible a decade ago, when the Korean car company controls more than 99% of the domestic market. Protected by tariffs, part of President Park Chung Hee's plan to modernize his country's agriculture, Hyundai started mass production sedan Pony in 1975 and now sold more than 4 million vehicles each year, with 2012 revenue of $ 78 billion.
The support of President Park for a variety of industrial conglomerate also known to "cheabol", as the group is owned and operated by a family. Combined with the spirit of nationalism has created favorable conditions for the development of the giant corporations such as Samsung, Hyundai as well as domestic markets less friendly to foreign companies.
After Korea to accept borrowed 60 billion dollars making their humiliating assistance from other sources, including the International Monetary Fund in 1998 during the Asian financial crisis, the newspaper pages simultaneously praised the effectiveness of the purchase and use of domestic products. Korean clothing under the brand ahead of Nike, the Korean film instead of Hollywood blockbusters and Hyundai vehicles instead of imported cars.
But then the changes began. Within a year of its launch in 2009, Apple's iPhone accounted for a quarter of smartphone sales in Korea. The consumption of imported beer double the growth rate of the market between 2007 and 2011. In the past decade, imported cars has steadily forward, for the first time increased by 10% in 2012, while sales of domestic firms by 2.9%.
Demand for luxury
Toyota's sales in Korea, including the luxury Lexus line, up 73% in 2012 to 15 771 vehicles, helped Toyota become the fourth largest foreign brands in the country, with 1.2% market share. Led BMW to 28,152 vehicles.
"Korea is where Hyundai and Kia sold the majority of their most advanced models, and there are also products that bring higher returns," said Lee Hyung Sil, an analyst at Shinyoung Securities said. But both car manufacturers based in Seoul have said quarterly profit declined and expressed worry about the adverse exchange rate makes imports cheaper, while reducing the value of Korean car exports. The won rose 4.8 percent against the dollar in the past six months, while the yen fell 15 percent.

                       Hisao Nakabayashi, president of Toyota Korea's Award Camry. Photo: cbt.
With the currency fluctuations is expected to continue, investors suffered exist every scene of the Korean car company: Kia sales decreased 29% in the past six months, Hyundai is 10%. This is the second worst performance among 28 members of the Bloomberg gauge for global automakers. Meanwhile, Toyota up 49%.
A free trade agreement in 2011 with the European Union to reduce import tax to 3.2 percent from 8 percent. A similar agreement with the United States also took effect in 2012, making foreign cars will cost more pleasant for customers in Korea and help the Japanese carmakers shipped from the factory in North America.
Hyundai earns more than 60% of operating profit in the year of income in Korea, making up 45% of the total profit. Profit in the U.S. only 22%, though sales accounted for 30%. To regain market share in South Korea, Hyundai midsize sedan discounts, with the highest decrease of 920 USD, or 3.5% of the listed price due to advanced hybrid Sonata. Kia K9 luxury sedan discounts. In addition, Hyundai also said they are upgrading the design and quality of products.
Change models
With Hyundai, the success of foreign firms in Korea makes them vulnerable. Including the Japanese automakers regain market share in the export market they lost due to the earthquake and tsunami in Japan and floods in Thailand. Therefore, the change is to be done. Tucson SUV or sedan Elantra now have expensive options, such as larger wheels, upgraded sound system and luxurious seating.
Meanwhile, Toyota will debut the RAV4 SUV and Avalon sedans manufactured in the United States for Korean customers this year. Lexus, Toyota's brand, will take the form of IS from Japan.
Honda, Japan's third largest car company, has launched five new models from 11/2012 to January this year, including the Accord, their best-selling car in the United States. "When Honda and Toyota back stronger than expected since the tsunami, Hyundai to lose some market share that they have won," Jesse Toprak, senior analyst at Truecar.com comment.
Korea is Hyundai's third-largest market, after China and the United States, and is also their main production base. The company said it produced 43% of vehicles in 2012 at home. Domestic sales of three luxury cars of Hyundai fell 20% in 2012. While sales Lexus under Toyota up 21%. Total Japanese car exports to Korea increased 26 percent, to 23,924 vehicles, compared to the same period last year.
And despite political disagreements between the two countries, but it seems that customers in the South were more open to Japanese cars. "Koreans are no longer appears to be sensitive to Japanese customers as in the past. Consumers want products made in developing countries, where they believe in the quality of the product. Japan and Germany are in the category reliable, "Park Jung Hyun, a senior researcher at LG Economic Research Institute in Seoul key issues.