South Korea: Carmakers cite high costs, low productivity as main concerns

(August 22).- South Korean carmakers on Tuesday cited high costs and low productivity as major sources of concern as they compete in an ever competitive market.

In a seminar held in Seoul to discuss outstanding issues facing local carmakers, executives from Hyundai Motor Co. and Kia Motors Corp. expressed worries about the unfriendly business environments in the automobile markets. Hyundai and Kia, which together form the world's fifth-largest automaker by sales, have gradually increased their overseas production volumes in the past decade due to rising labor costs and relatively low productivity at local plants.

Source: Yonhap News


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