Korean Carmakers to Install Telematics Gadgets

Seoul August 17, 2003; Seo Jee-yeon writing for Korea Timese reportes that Korean car makers are teaming up with mobile phone operators and electronics companies to install state-of-art telematics gadgets in their cars.

Their decision is based on their prediction that consumers will prioritize telematics equipment in their selection of vehicles in the future.

Telematics refers to any integrated communication and computer system that provides drivers with an array of information and services in real-time through. This is done through the integration of an in-car computer, global positioning system (GPS) and mobile phone.

Hyundai Motor and Kia Motors have announed that they will take the initiative to commercialze a telematics system by installing telematics terminals some of their cars, such as the Grandeur XG, EF Sonata and Optima (Kia), from next month.

Hyundai will launch its telematics service brand-named ATOM (Automobile Telematics Office and Multimedia) in cooperation with LG Telecom, a domestic mobile phone operator.

At the second step, both carmakers will expand state-of-art services up to between 10 and 13 car brands by the end of next year, including their luxury sedan brands, Equus and Opirus.

``From 2005, we will provide our clients with safety-focused services, such as remote diagnostics to their cars,’’ Hyundai Motor said.

Hyundai aims to increase the number of cars with telematics system up to 700,000 units by 2007, while Kia aims to secure 600,000 cars with the system by the end of 2009.

Their telematics gadgets will include hands-free calls to real-time traffic information and personal schedual mangment.

Ssangyong Motor also plans to provide its clients with telematics services in their brands, including developing luxury versions of the mini-van A100, luxury sedan Chairman and sports-utility-vehicle Rexton through partnership with a KTF-led consortium in the first half of next year.

To catch up, French-Korea carmaker Renault Samsung Motors (RSM) also formed a partnership with SK Telecom and Samsung Electronics.

RSM brands SM3 and SM5 will come equipped with cars navigation and information search services, which SK Telecom will provide through a Samsung-made terminal, the company said.

GM Daewoo will also resume its telematics services soon, which it experimented with in 2001 _ the first time among the Korean carmakers.

The telematics market is still in its infancy. According to the industry watchers, the domestic telematics market topped 107 billion won last year. But it will grow to more than 850 billion won by 2005.

Korea has already picked telematics as one of next-generation growth engines for the economy.

jyseo@koreatimes.co.kr