Analysis-South Korean Blosy Cars Exports US Tariff Pillow Effect

Written by Ju -in Park

Incheon, South Korea (Reuters) -Telä -Settelä -Korean’s coast of the former amusement park muddy areas have been packed abroad for broadcasting when flourishing car exports help to relieve us. tariffs sales of a new car.

Outdoor fever sweating workers charge and attach cars around the clock for sending dishes at the South Korean largest used car in Incheon, west of Seoul.

« It is embarrassing for us to tell ourselves that our business is a star export product, » said merchant Kevin Seol, who supplies about 100 used cars every month. « But the industry is constantly growing according to figures, so I think we will participate in national export. »

South Korean automatic transmissions to the United States have declined by six consecutive months President Donald Trump reported 25% tariffs.

But its global export of cars has risen for three straight months, supported by a record -breaking high -hand vehicle sales, one quarter of the entire car export and 13% according to the value of the Ministry of Trade and customs data.

In August, South Korea took $ 5.5 billion cars, 9% more than a year earlier and the most monthly total, said the Ministry of Trade. Used car exports rose from 35%to $ 711.5 million in the same month, according to the car’s Distribution Institute, Korea.

The growth of a used vehicle is largely driven by the unattainable demand for older Hyundai and Kia cars in Russia and nearby, and the weaker won, merchants and experts said.

« Exports to the United States do not take into account much of our business, » Seol said. « Demand for other countries is strong, so the tariffs haven’t really hurt us. »

Tariffs can raise used car prices

South Korea takes up most of the used cars that are sold nearby, Central Aasia and Russia, according to government information and merchants.

In these markets, Korean cars may be more attractive than the Japanese market in the export competition because they are designed to drive on the right side of the road, while Japan’s stations on the left, merchants said.

In the largest new cars export market, the United States, exports have suffered a 25 % tariff, which is still higher than in Japan and European cars, although Soul negotiates for a discount.

But even though US tariffs are negative for new car markets, they can lead to demand for used vehicles and higher prices, said Shin Hyun-Do, Director of the Director of Distribution Research, who used Korea.