Imported Car Sales In S Korea Fall In Sept; Tax Cut Ends

SEOUL -October 4, 2002 Dow Jones reported that sales of imported cars in South Korea dropped 16% on year to 1,531 units in September after a temporary sales tax cut on car purchases expired at the end of August, said the Korea Automobile Importers and Distributors Association on Friday.

The tax cut, which provided in proportion a greater discount rate on the purchase of more expensive cars, allowed foreign carmakers and imported car dealers to see their monthly sales rise sharply for much of the year until September, Kaida said.

The South Korean government implemented the tax cut on luxury goods and cars in last November to spur domestic demand and stimulate the economy.

In the first nine months of this year, sales of imported cars rose to 11,991 vehicle units from 5,737 units in the year-ago period, Kaida said. Driving imported cars is no longer as frowned upon in South Korea as it once was, and that has also helped the import car business, analysts say.

In September, the best-selling individual import model was BMW735, with 123 units sold. Toyota Motor Corp.'s Lexus ES300 was the next most popular, with 104 units sold.

The most popular foreign car brand in South Korea for the month remained BMW, with 513 units of its 19 models sold.