Korea’s automobile exports drop to 3-year low in August

Korea’s exports of cars dropped sharply from a year earlier in August due to a large cut in production caused by labor strikes that also led to shrinking domestic sales, the government said Sunday.

Outbound shipments by the country’s five automakers came to 164,805 vehicles in August, down 23.6 percent from the same month last year, according to the Ministry of Knowledge Economy.

The August figure marks the lowest tally in 36 months since August 2009, and also the first year-on-year drop in 2012.

The ministry attributed the drop mainly to a cut in production caused by labor strikes.

“A drop in output caused a drop in exports in August as shipments to the United States also showed a year-on-year drop for the first time this year,” it said in a press release.

Production plunged 25.9 percent on-year with domestic sales dropping 23.6 percent.

Sales of imported vehicles, on the other hand, grew 16 percent from a year earlier, driving up the combined market share of imported vehicles to 10.9 percent. It is the first time in the country’s history the combined market share of foreign vehicles reached a double-digit figure, according to the ministry. (Yonhap News)