Automotive industry in South Korea
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The automotive industry in South Korea is the fifth-largest in the world as measured by automobile unit production and also the sixth-largest by automobile export volume.
While its initial operations were merely the assembling of parts imported from foreign companies, South Korea is today among the most advanced
Major South Korean automobile manufacturers include GM Korea, Hyundai Motor Group and its affiliate, Kia Corporation along with Renault Korea Motors.
Domestic brands
General Motors Korea (formerly Daewoo Motors)
Hyundai Motor Group
Kia Corporation
KG Mobility (formerly Ssangyong Motors)
Renault Korea Motors (formerly Renault Samsung)
History
Origins
The history of the Korean automotive industry began in August 1955, when Choi Mu-seong, a Korean businessman, and two of his brothers (Choi Hae-seong and Choi Soon-seong), mounted a modified and localized jeep engine on a US military jeep-style car body made with the sheet metal from a junk oil drum can and military junk Jeep parts to manufacture its first car, called the Sibal (car). Sibal translates as new go or new start.
To develop the automobile industry, the
1970 to 1990
In 1970, Toyota began to show hesitation in continuing its relationship with Shinjin Automobiles. After Toyota's withdrawal in 1972, Shinjin entered into a joint venture with
The
- design from Italdesign;
- transmission and engine from Mitsubishi;
- technology transfer (bodies) from Perkinson;
- car body moldingfrom Ogihara Mold Company;
- machine press from France; and
- Funds from Barclays Bankand France Suez.
Hyundai chalked up another first when it exported the Pony to South America, in countries like Colombia, Venezuela and Ecuador between 1976 and 1982, making it the first Korean-developed car to be exported. In 1977, Motores Tecno in Costa Rica, became the first Hyundai distributor in Central America, where the Hyundai Pony pickup were sold.
In 1982, the
Shinjin Jeep Motors, which was a subsidiary of Shinjin Motors, changed its name to Geohwa Co. in 1981, and was taken over by Dong-A Motor Co. (formerly Ha Dong-hwan Automobile Industry Co.) in 1985. In 1986, the company was renamed the SsangYong Motor Company.
While localization of auto parts was the major concern during the 1970s, developing
1990 to present
Hyundai's cumulative exports to the U.S. exceeded one million in 1990. In 1992 its ScoupeTurbo won at the
The Excel, although initially well received, gave Hyundai a bad image, as over time its faults became apparent. Also, in efforts to bring the costs down, its quality and reliability suffered. As time caught up with the poor reputation of Hyundai in the United States, sales dropped drastically, and car dealerships started abandoning their franchises.
Rather than drop out of the world's largest automotive market, Hyundai began investing heavily in the quality, design, manufacturing, and long-term research of its vehicles in 1998, and added a ten-year or 100,000-mile
Towards the end of the 20th century, however, the industry began to face tremendous pressures at home, with the domestic market growing at under five percent, and greater competition, both locally and abroad. With energy waste, air pollution, and
Internal pressures at home have also forced Korean automobile manufacturers to venture aggressively into
The purchase of
As the world leader in rechargeable battery production, South Korean manufacturers rely on imports for more than 60% of battery material, most of which comes from China. This leaves South Korea vulnerable to trade tensions and geopolitical shocks with China and other countries in the region.[8]
Timeline
1950s
- 1955: Choi Mu-seong, a Korean businessman and two of his brothers mounted an engine on a modified US Army Jeep body and chassis to manufacture the historic model, called "Sibal";
- Shinjin Industrial founded[9] (precursor of Daewoo Motor);
- Hyundai Civil Works Company founded by Chung Ju-yung;
- Ha Dong-hwan Car Assembly Shop founded.
1960s
- 1960: UNKRA funds $200,000 to Shinjin Industrial (LTD.) to build Busan Plant[9]
- 1961: Government established "Industrial Standardization Act" and announced "Transportation Business Act and Road Traffic Act".
- 1962: Government established "5-Year Automobile Industry Plan", and announced the "Automobile Industry Protection Act";
- Saenara Automobiles founded, in technical cooperation with Nissan Motor Co.;
- Ha Dong-hwan Automobile Industry Co. founded;
- Kyeongseong Precision Industry changed its name to Kia Industry.
- 1963: Shinjin Sinsungho launched.[9]
- 1964: Government announced the "Automobile Industry Comprehensive Promotion Plan";
- Kia Industry produced Mazda models under licensing;
- Kia T-600 Triple Truck launched.
- 1965: Government announced "3-Year Automobile Localization Plan", with a goal to achieve 90% local content by 1967;
- Asia Motors Co. established;
- Shinjin Automobiles took over Saenara Automobiles and Shinjin Corona launched with 20% local content assmebled.[9]
- 1967: Shinjin Crown,[9] Sinjin Truck, and Sinjin Ace launched.
- 1967: Government announced the "Automobile Plant Permission Standards".
- 1968: Hyundai Motor Co. founded, and established licensing agreement with Ford Motor Company;
- Hyundai Cortina, Hyundai Ford 20M, Hyundai Ford D-series, and Hyundai Ford DK-Series launched.
- Shinjin Publica first produced.[9]
- 1969: Government announced "Basic Plan for Automobile Industry Promotion".
1970s
- 1970: Gyeongbu Expressway fully opened;
- Sinjin New Crown, Hyundai 0303 Benz bus, Kia Titan, and Kia Boxer launched;
- Toyota showed hesitation in continuing with Sinjin Automobiles.
- 1972: Shinjin Automobiles joint-ventured with General Motors to form GM Korea,[10] and launched Chevrolet 1700, based on Holden Torana model;
- Kia Brisa (1974–1982) (K303) launched, based on Mazda Familia model;
- Kia KB truck launched, based on Hinotruck model;
- Sinjin Automobiles launched Jeep under licensing from American Motors;
- 1973: Hyundai New Cortina launched.
- Kia opens the Sohari Plant in Gwangmyeong.
- Kia opens the
- 1974: Government set goal of half a million vehicles to be built annually, with the announcement of the "Automobile Industry Promotion Plan";
- Sinjin Automobiles joint-ventured with American Motors on 50-50 basis to form Sinjin Jeep Company;
- GM Korea Rekord, based on Opel Rekord, launched.
- 1975: Government established "Systematization Promotion Act" for medium and small enterprises in automobile industry;
- Hyundai Motor Co. established its own research institute, and produced Hyundai Pony, the first Korean-developed car, designed by ItalDesign and based on Mitsubishi technology. The car is imported to Britain, where Korean cars have never been sold before.;
- GM Korea's Camina launched, based on Holden Torana.
- 1976: Hyundai Motor made Korean history by exporting the "Pony" to the Republic of Ecuador;
- Kia Industry took over Asia Motors Co.;
- GM Korea changed its name to Saehan Automobiles,[11] and produced Saehan Gemini (based on Opel Kadett and Isuzu Gemini models), and Saehan Elf (based on Isuzu Elf);
- Hyundai truck launched, based on a Mitsubishi Fusomodel; Hyundai HD1000, and Hyundai Vison also launched.
- 1977: Ha Dong-hwan Automobiles changed its name to Dong-A-Motors.
- Saehan (SMC) BF101 bus launched[11]
- 1978: Hyundai Ford Cortina Mark IV, Hyundai Ford Cortina Mark V, and Hyundai Ford Granada launched;
- Saehan Rekord and Saehan Royale Salon, both based on Opel Rekord, also launched.
- 1979: Shinjin Jeep Motor Co. changed its name to Shinjin Motor Company as the company became a domestic corporation;
- Kia Bongo truck launched.
1980s
- 1980: Government announced integration of automobile industry.
- 1981: Sinjin Automobiles changed its company name to Geohwa Company.
- 1982: Hyundai Pony II and Hyundai FB buses, Kia Bongo van launched.
- 1983: Saehan Automobiles changed its name to Daewoo Motor, while partnering with General Motors;[12]
- Daewoo BV101 bus launched,[12] based on Isuzu truck model.
- Daewoo Royale series launched;
- Hyundai Stellar launched;
- Hyundai Motors established Hyundai Auto Canada Inc.;
- Keohwa's Korando launched.
- 1984: Hyundai Pony-Excel, and Hyundai Prestolaunched;
- Asia Combi launched.
- 1985: Ministry of Commerce and Industry postponed import liberalization of automobiles;
- Dong-A Motor Co. took over Keohwa Co.;
- Kia Besta launched;
- Number of vehicles registered in South Korea exceeded one million.
- 1986: Government designated automobile industry for rationalization, based on the "Industry Development Act";
- Government revised the "Road Transportation & Vehicle Act, and other related regulations;
- Dong-A Motor Co. took over Geohwa Co. and renamed it Ssangyong Motor Co.;
- Hyundai PrestoAMX Model, launched and exported to United States;
- Hyundai Excel nominated by Fortune magazine for the "Best Product 10" award;
- Daewoo Le Mans, based on Opel Kadett, launched.
- 1987: Government cancelled "Automobile Industry Rationalization Plan";
- Government introduced import liberalization of commercial vehicles between 1,000 and 2,000 c.c.;
- Transportation Ministry revised "Enforcement Decree of the Automobile Management Act";
- Kia Pride, Kia Concord, Asia Topic, and Kia Jumbo Titan launched;
- Hyundai Truck (new model), Fusomodel.
- 1988: Annual domestic automobile production volume exceeded one million units;
- Korea Automobile Manufacturers Association (KAMA) established;
- Hyundai named "Official Car" for the 1988 Summer Olympics;
- Hyundai Chorus and Hyundai Sonata (new model) launched;
- SsangYong Korando family launched.
- 1989: Hyundai Motor completed construction of its plant in Bromont, Canada;
- Hyundai Sonata launched, using in-house design, but still featuring Mitsubishi technology;
- 3Gen from Hyundai Excel, Hyundai Porter 1.25 ton launched;
- Kia Capital and Kia Wide-Bongo launched, along with Kia Motors's import model, Mercury Sable.
1990s
- 1990: Hyundai's cumulative exports to the U.S. surpassed 1 million in 1990;
- Kia Industry changed its name to Kia Motors Co.;
- Hyundai Scoupe, and Hyundai Elantra launched.
- 1991: Hyundai Sonata (new model) launched;
- Kia Townerlaunched;
- Daewoo Damas, and Daewoo LeMans(new model) launched.
- Kia enters the European market with exports of its Pride hatchback, derived from the Mazda 121 of 1987.
- 1992: Hyundai Scoupe (new model) launched; ScoupeTurbo won at the "Pikes Peak Hill Climb Rally";
- Kia Potentialaunched.
- 1993: Hyundai Elantra (new model launched), and was selected "Best Car of 1993" in Australia;
- Kia named "Official Car" for Expo.
- Kia named "Official Car" for
- 1994: Samsung Motors founded.
- The Kia brand launched in the United States
- 1995: Number of vehicles registered in South Korea exceeded eight million;
- Hyundai's Accent earned "Canadian Best Buy Award", and also won the "Asia-Pacific" Rally;
- First Seoul International Motor Show.
- Daewoo begins importing cars to Britain, aided by a revolutionary sales package where cars are sold directly to customers from the manufacturer rather than through a traditional dealer network.
- 1997: Kia Motors went into financial trouble, and helped push South Korea into the Asian financial crisis.
- 1998: Hyundai began investing heavily in quality, design, manufacturing, and long-term research, and added a 10-year or 100,000-mile warranty to its vehicles in the United States;
- Samsung Motors started selling cars;
- 51% of Kia Motors acquired by Hyundai Motor;
- Daewoo Motors took over the troubled SUV specialist, SsangYong
- 1999: Asia Motors completely merged with Kia Motors Company.
2000s
- 2000: Samsung sold a 70% stake in Samsung Motors to Renault Samsung Motors.
- Daewoo Motors divests of SsangYong Motor Company
- 2002: Major assets of Daewoo Motors acquired by General Motors. The new company was named GM Daewoo.
- 2004: Hyundai tied with Honda for initial brand quality, second in the industry behind Toyota, in a survey conducted by J.D. Power and Associates.
- SsangYong Motor Company.
- 2005: Hyundai completed construction of its $1 billion assembly plant in Montgomery, Alabama;
- GM Daewoo vehicles were exported under various GM brands (and Suzuki), but mostly as Chevrolets
2010s
- 2011: GM Daewoo renamed itself to GM Korea, and in March, all GM Daewoo products are sold in South Korea as Chevrolets.
- 2011: After the renaming of GM Korea, the Daewoo Damas and Daewoo Labo has not worn any marque.
- 2011: GM Korea developed a new Luxury brand called GM Alpheon.
- 2015: Hyundai launched new luxury brand called Genesis
- 2017: EES acquired TGM, formerly known as bus manufacturing department of Hanguk Fiber. And established Edison Motors.
2020s
- 2021: Kia Motorschanged its name to 'Kia' and change their slogan as 'Movement that inspires'.
- 2021: Hyundai launched first EV brand's vehicle. Hyundai Ioniq 5.
- 2021: First Gwangju Global Motors product, Hyundai Casper began production.
- 2022: Kia EV6 was named as European Car of the Year and North American Car of the Year
- 2023: Ssangyong was changed as KG Mobility (KGM), due to KG Group from South Korea acquired it. And they also acquired fromer Edison Motors and changed its name 'KGM Commercial'
Automobile manufacturers and products
Hyundai Motor Company
Genesis
Ioniq
- Ioniq 5
- Ioniq 6
Passenger cars
- Accent/Verna (Discontinued in Korea)
- Elantra/Avante
- Grandeur/Azera
- i10 (Not sold in Korea)
- i20 (Not sold in Korea)
- i30/Elantra Touring (Discontinued in Korea)
- Hyundai i40 (Discontinued)
- Sonata
- Hyundai Veloster N(Discontinued)
SUVs and vans
Commercial vehicles
- Hyundai Mighty II
- Hyundai e-Mighty
- Hyundai County
- Hyundai Truck (8/25-ton truck)
- Hyundai Super Truck 5ton/4.5ton (HD Series)
- Hyundai Super Truck (HD Series)
- Hyundai Aero Town
- Hyundai Super Aero City
- Hyundai Universe
- Hyundai HD120
- Hyundai HD160
- Hyundai HD170
- Hyundai HD260
- Hyundai Xcient
- Hyundai Elec City
- Hyundai Pavise
- Hyundai HD50S (Modern Jeepney; Only in Philippines)
- Hyundai Hongtu (Only in China)
Kia Corporation
Passenger cars
- Amanti/Opirus
- Cadenza/K7
- Ceed
- K3/Forte/Cerato
- Morning/Picanto
- Rio
- Spectra/Cerato
- Stinger
- Visto
- K5
- K8
- K9
SUVs and vans
- Ceres
- Topic
- Towner
- Bongo/K-Series
- Carens/Rondo (Discontinued)
- Carnival/Sedona
- Mohave
- Niro
- Sorento
- Soul
- Sportage
- Stinger (Discontinued)
- Telluride (Not sold in Korea)
- Seltos
- Ray
EV Lineup
Commercial vehicles
General Motors Korea (formerly Shinjin Motors/Saehan Motors/Daewoo Motors)
- Buick Encore/Opel Mokka (subcompact SUV; 5-door wagon; export-only; discontinued)
- Buick Encore GX (subcompact SUV; export-only)
- Buick Envista (compact SUV; export-only)
- Chevrolet Aveo/Sonic (supermini; 5-door hatchback, 4-door sedan; discontinued)
- Chevrolet Bolt (compact electric; imported)
- Chevrolet Camaro SS (sports car; imported)
- Chevrolet Captiva (mid-size SUV; 5-door wagon; discontinued)
- Chevrolet Colorado (midsize pickup truck; imported)
- Chevrolet Cruze (compact car; 4-door sedan, 5-door hatchback and station wagon; discontinued)
- Chevrolet Equinox (compact crossover; imported)
- Chevrolet Malibu (mid-size car; 4-door sedan; Made in Korea)
- Chevrolet Orlando (compact MPV; 5-door wagon; discontinued)
- Chevrolet Spark (city car; 5-door hatchback; Made in Korea)
- Chevrolet Tahoe (Full-size SUV; Imported. Online sold only)
- Chevrolet Trailblazer (compact crossover; Made in Korea)
- Chevrolet Traverse (midsize crossover; imported)
- Chevrolet Trax (subcompact SUV; 5-door wagon; Made in Korea)
- Damas/Labo(microvan, pickup; Discontinued)
- GMC Sierra Denali (full-size pickup truck; imported)
Alpheon
- Alpheon (discontinued)
KG Mobility
SUVs and vans
- Rexton
- Korando
- Rodius/Stavic/Korando Turismo
- Tivoli
- XLV/Tivoli AIR
Pickup trucks
- Musso/Musso Grand/Rexton Sports/Rexton Sports Khan
- Actyon Sports (discontinued)
Renault Korea Motors
- Renault Samsung XM3
- Renault Samsung SM3 (discontinued)
- Renault Samsung SM3 Z.E. (discontinued)
- Renault Samsung SM5 (discontinued)
- Renault Samsung SM6
- Renault Samsung SM7 (discontinued)
- Renault Samsung QM3 (imported; discontinued)
- Renault Samsung QM6
- Renault Captur (discontinued)
- Renault Clio (imported; discontinued)
- Renault Master (imported)
- Renault Twizy (discontinued)
- Renault Zoe (discontinued)
Tata Daewoo
- Tata Daewoo Novus Series
- Tata Daewoo Prima Series (2009~2022)
- Tata Daewoo DEXEN (2020~Present)
- Tata Daewoo MAXEN (2022~Present)
- Tata Daewoo KUXEN (2022~Present)
KGM Commercial (former Edison Motors)
discontinued
Asia Motors
Proto Motors
Imports
Most importers and distributors of foreign automotive marques in the South Korean market are members of the Korea Automobile Importers & Distributors Association (KAIDA). As of 2024, marques represented by the members of KAIDA are the following:
- Audi
- Bentley
- BMW
- Cadillac
- Chevrolet (some models are imported)
- DS
- Ford
- GMC
- Honda
- Jaguar
- Jeep
- Lamborghini
- Land Rover
- Lexus
- Lincoln
- Maserati
- Mercedes-Benz
- MINI
- Peugeot
- Polestar
- Porsche
- Rolls-Royce
- Toyota
- Volkswagen
- Volvo
The following commercial vehicle brands are also represented by members of KAIDA in South Korea:
There are also imported vehicles whose official distributors are not members of KAIDA. As of 2024, the marques are:
- Aston Martin
- Brilliance (commercial vehicles)
- BYD (commercial vehicles)
- DFSK (compact commercial vehicles)
- Ferrari
- Geely (commercial vehicles)
- Isuzu(commercial vehicles)
- Koenigsegg
- Lotus
- McLaren
- Renault (Master vans are imported)
- Tesla
Historically, the following makes were officially represented in South Korea:
- Chrysler (1992-2017)
- Citroën
- Dodge (Caliber, Dakota)
- Fiat
- Huansu (sold as Kenbo 600)
- Infiniti (2005-2020)
- Lancia (1996-1997)
- Mazda (Bongo was co-branded by Kia from 1980 to 1990)
- Mercury (Sable was co-branded by Kia from 1989 to 1996)
- Mitsubishi (2008-2013)
- Nissan (2008-2020)
- Saab (1988-2009)
- Subaru (2010-2012)
- Suzuki (1997)
References
- ^ "History". Samsung. Archived from the original on 2 July 2012. Retrieved 19 March 2013.
- ^ a b 삼성상용차 24일 파산 신청 [Samsung Commercial Vehicles for bankruptcy in 24 days]. article.joins.com (in Korean). JoongAng Ilbo. 23 February 2002. Retrieved 24 August 2013.
- ISBN 978-0-415-27051-9.
- ^ a b <기업구조조정> 삼성상용차, 자산은 매각·인력은 계열사 수용 ["Corporate restructuring:" Samsung commercial vehicles, sale of assets and personnel transfer to subsidiaries] (in Korean). Labortoday.com. 3 November 2000. Retrieved 20 March 2013.
- ^ 대구 옛 삼성상용차터에 간판 기업들 잇단 입주 [Samsung agrees to move companies on the old Busan's Samsung Commercial Vehicles' lot]. hankooki.com (in Korean). 15 November 2009. Archived from the original on 1 November 2013. Retrieved 24 August 2013.
- ^ "Samsung Commercial Vehicle Applies for Bankruptcy". The Chosun Ilbo. 24 November 2000. Retrieved 19 March 2013.
- ISBN 978-0-470-82266-1.
- ^ Jung-a, Song (6 October 2021). "South Korea's global battery dominance raises supply chain risks". Financial Times. Retrieved 17 October 2021.
- ^ a b c d e f 회사소개 > 기업연혁 > 신진자동차 Archived 10 November 2013 at the Wayback Machine (Company > History > Shinjin Motors)
- ^ 회사소개 > 기업연혁 > G.M코리아 Archived 5 November 2016 at the Wayback Machine (Company > History > GM Korea)
- ^ a b 회사소개 > 기업연혁 > 새한자동차 Archived 9 August 2016 at the Wayback Machine (Company > History > Saehan Motors)
- ^ a b 회사소개 > 기업연혁 > 대우자동차 Archived 10 November 2013 at the Wayback Machine (Company > History > Daewoo)