Tuesday, November 27, 2007

[The Chosun Ilbo, November 23 2007] SK Challenges Auto Retailers with Gray-Market Imports

SK Group's advance into Korea's auto retailing industry could cause a major shift in a market that is compartmentalized between homemade and imported brands. SK Networks announced on Thursday that it will deal five foreign auto brands -- Mercedes-Benz, BMW, Audi, Lexus and Toyota -- at its new imports-only stores in Seoul and Gyeongi Province.

The full impact of SK's move into the market is yet to be felt. While SK is confident that providing a diversity of imported cars at affordable prices will bring about significant changes in the market, domestic carmakers and import companies are skeptical, questioning just how deep an effect the company will make. But Kang Cheol-gu, director of the Korea Automobile Manufacturers Association, said SK's move will benefit Korean drivers. "It's ultimately good news for consumers as they will enjoy either lower prices or better service driven by the heightened competition among companies," Kang said.

No comments: