Journalist
KimSuJi
sujiq@ajunews.com
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Hyundai Targets China and India Rebound With 46 New Models, Aiming for 1.28 Million Sales by 2030 Hyundai Motor is seeking a rebound in China and India, the world's No. 1 and No. 3 auto markets, by sharply expanding new-model launches. The push signals the company does not intend to abandon key markets, though intensifying competition from fast-growing local brands makes success uncertain. Hyundai said March 22 that CEO Jose Munoz, in a recent shareholder letter, set a goal of lifting combined annual sales in China and India to 1,276,500 vehicles by 2030. The targets are 832,500 in India and 444,000 in China. Based on last year's global sales of 7.27 million vehicles, the 2030 goal would represent about 23% of Hyundai's total, meaning roughly one in four vehicles would be sold in China or India. With sales in the two markets totaling 702,000 last year, the plan implies growth of about 82%. Both markets are considered essential, but Hyundai has struggled amid tougher competition. In China, Hyundai sales fell to 130,005 last year from 181,993 in 2024. In India, sales slipped to 571,878 from 607,934. Hyundai plans to launch 46 new models in China and India over the next five years, about 2.6 times the 18 introduced over the past five years. By year, new-model launches were 6 in 2021, 3 in 2022, 6 in 2023, 1 in 2024 and 2 in 2025. Munoz said Hyundai will introduce 20 new models in China over five years under a strategy of "in China, for China, to the world." For India, he said the company plans to roll out 26 new models backed by $5 billion in investment through 2030. Hyundai is also emphasizing localization. In India, it plans an electric SUV that will be planned, designed and produced locally, and it is considering bringing its premium Genesis brand to the market. In China, Hyundai last year launched its first strategic model there, the electric SUV Elexio. An auto industry official said local EV brands already dominate China, making a new approach urgent.* This article has been translated by AI. 2026-03-22 15:12:16 -
South Korea’s KF-21 Fighter Jet Set for First Export to Indonesia South Korea’s homegrown Boramae (KF-21) fighter jet, slated to enter mass production this year, is set for its first export — to Indonesia, a co-developer of the program. Government and defense industry officials said Thursday that an export agreement for Indonesia to acquire 16 KF-21s is expected to be signed during Indonesian President Prabowo Subianto’s state visit to South Korea planned for later this month, at Korea Aerospace Industries (KAI). Officials said the two sides are expected to fine-tune the final amount afterward and hold a separate contract-signing ceremony in the first half of the year. The deal would mark the first export of a fighter jet developed with South Korean technology. The KF-21 system development program dates to November 2000, when former President Kim Dae-jung declared South Korea would become an advanced aviation nation by developing an advanced fighter jet by no later than 2015. The project is a key national defense program aimed at replacing the Air Force’s aging F-4 and F-5 aircraft with a domestically developed 4.5-generation fighter suited to future battlefields. The program initially struggled to gain traction over feasibility questions and securing advanced technologies, but accelerated after the Defense Acquisition Program Administration signed a main system development contract with KAI in December 2015. A total of 8.1 trillion won was invested in system development with Indonesia from 2015 through this year, and 8.4 trillion won has been set aside for mass production costs from 2026 to 2028. The overall project cost totals 16.5 trillion won, and has been described as the largest defense capability buildup project since the founding of the nation. In January, the KF-21 completed a test flight successfully. DAPA plans to finalize system development in the first half of this year and begin delivering the first mass-produced aircraft to the Air Force in the second half. * This article has been translated by AI. 2026-03-19 19:36:18 -
Hyundai Struggles in China as Chinese Automakers Step Up Push Into South Korea Hyundai Motor Co. is again struggling to gain traction in China, with local sales slipping and the company leaning more heavily on exports from its China operations. Chinese automakers, meanwhile, are accelerating efforts to expand sales in South Korea by rolling out new models. According to industry data released Thursday, Beijing Hyundai Motor Co. (BHMC), Hyundai’s China unit, sold 16,535 vehicles in China’s domestic market in January and February, down about 500 from 17,021 a year earlier. The figure is about half the 26,163 vehicles sold in the same period in 2024. Hyundai’s annual sales in China have been falling for years. Sales dropped about 71% to 128,008 last year from 440,177 in 2020. Annual totals were 350,277 in 2021, 250,423 in 2022, 242,000 in 2023 and 125,127 in 2024, continuing a downward trend. Against that backdrop, Hyundai has shifted its China strategy from domestic sales to exports. Exports of vehicles produced in China rose to 66,214 last year from 5,905 in 2020. Of last year’s exports, 16,492 vehicles were shipped to South Korea. With China’s economy slowing and consumer demand weakening, BHMC’s export-focused approach is expected to remain in place for now. As weaker demand is anticipated in China, Chinese automakers are moving in the opposite direction by stepping up their push into South Korea. BYD, marking its 10th year in the Korean market, is preparing to launch its first hybrid model in Korea within the year. Its current lineup in Korea — ATTO 3, SEAL, SEALION 7 and DOLPHIN — consists entirely of battery-electric vehicles. BYD’s sales target for this year is 10,000 vehicles. Polestar, an electric-vehicle brand under China’s Geely Automobile Group, set a target of 4,000 vehicles, up more than 30% from last year. To support that goal, it plans to launch the performance SUV Polestar 3 in the second quarter and the flagship SUV Polestar 5 in the third quarter. It also plans to build 400 chargers at 40 sites nationwide by 2030. Geely’s Zeekr is also making final preparations to enter South Korea, aiming as early as the third quarter with the SUV 7X as its first model. BYD sold 2,304 vehicles in South Korea through February, putting it on pace to surpass its 10,000-unit goal. Polestar, which sold 27 vehicles in January, increased sales to 243 in February. An auto industry official said Chinese companies have strengthened their technological competitiveness after building from their home market.* This article has been translated by AI. 2026-03-19 18:03:20 -
Hyundai Motor Boosts R&D to 5.5 Trillion Won Despite Headwinds, Stays Focused on Future Tech Hyundai Motor Co. increased research and development spending last year despite external uncertainty, including U.S. tariff measures, as it sought to secure future competitiveness. The company is expected to continue investing this year in key technologies such as electrification and software-defined vehicles, or SDVs, to strengthen its response to global markets. According to its annual business report filed March 18 with South Korea’s Financial Supervisory Service, Hyundai spent 5.5354 trillion won on R&D last year, accounting for 3.0% of revenue. The spending came even as uncertainty weighed on the industry, including an electric-vehicle demand slowdown and higher U.S. export tariffs. Hyundai’s R&D outlays have risen for several years. The total increased by nearly 1 trillion won from the previous year’s 4.5894 trillion won, and the share of revenue rose 0.4 percentage points to 3.0% from 2.6%. Hyundai reported weaker results last year. Operating profit fell 19.5% from a year earlier to 11.4679 trillion won. Still, the company said expanded local production and adjustments to sales strategy helped it rank second in annual operating profit in the global auto market, surpassing Germany’s Volkswagen Group for the first time. To reduce cost burdens such as tariffs, Hyundai raised utilization at overseas plants, aiming to boost price competitiveness by producing more locally rather than exporting from South Korea. By region, plant utilization was highest in South Korea at 102.1% and lowest in Vietnam at 37.6%. Other figures were Brazil 102.0%, the United States 65.3% to 100.6%, Turkey 98.5%, India 94.2%, the Czech Republic 83.7% and Indonesia 47.3%. South Korea remained Hyundai’s largest production base, with 1.808 million vehicles produced last year. It was followed by India with 820,000, the United States with 460,000, the Czech Republic with 330,000, Brazil with 210,000, Turkey with 200,000, Indonesia with 150,000 and Vietnam with 113,000. Despite the localization strategy, vehicle prices edged up, influenced by higher parts costs. The average overseas selling price for passenger cars last year was 75.91 million won, up 6.91 million won from 69.00 million won a year earlier. In South Korea, the average was 56.17 million won, up 2.20 million won from 53.97 million won. Average selling prices for recreational vehicles were 80.44 million won overseas and 55.81 million won in South Korea. Overseas RV prices rose 16.57 million won from a year earlier, while domestic RV prices increased by about 2.38 million won. Separately, Hyundai Motor Group Executive Chair Euisun Chung received a record-high annual pay package last year. His total compensation from three group companies — Hyundai Motor, Kia and Hyundai Mobis — totaled 17.461 billion won. His annual compensation from the three companies was 5.98 billion won in 2020, 8.776 billion won in 2021, 10.626 billion won in 2022, 12.201 billion won in 2023 and 11.518 billion won in 2024. * This article has been translated by AI. 2026-03-18 17:48:45 -
Hyundai Mobis Lowers Board Entry Bar Under Revised Commercial Act, Raising Governance Risks Hyundai Mobis has amended its articles of incorporation in line with South Korea’s revised Commercial Act, a move expected to lower barriers for activist funds and minority shareholders seeking seats on the board. As a key affiliate in Hyundai Motor Group’s governance structure, the changes are fueling concerns that risks could grow during any future groupwide governance overhaul. At its 49th annual shareholders meeting held March 17 at GS Tower in Seoul’s Gangnam district, Hyundai Mobis approved multiple charter revisions, including deleting a clause that excluded cumulative voting, clarifying directors’ duty of loyalty, renaming outside directors and strengthening audit committee composition requirements. Most agenda items were tied to the revised Commercial Act, which is set to take effect this year. A central change is the so-called “3% rule,” under which voting rights of the largest shareholder and related parties will be capped at 3% when electing audit committee members starting July 23. Additional provisions scheduled for Sept. 10 include mandatory cumulative voting and expanded separate elections for audit committee members. The revisions aim to strengthen minority shareholder rights and board oversight, but companies view them as a new burden. Hyundai Mobis is seen as central to any Hyundai Motor Group governance restructuring, and critics say the new rules could become a risk factor. With the removal of the cumulative-voting exclusion, the likelihood has increased that directors representing minority shareholders could be elected. Under cumulative voting, shareholders can cast all votes they hold — equal to the number of director candidates — for a single nominee. If more directors aligned with minority shareholders join the board, differing views could complicate efforts to push ahead with governance changes. Hyundai Motor Group previously attempted a governance overhaul in 2018, but the plan was scrapped after opposition from activist hedge fund Elliott. The group is now the only one among South Korea’s top 10 conglomerates that still maintains a circular shareholding structure. In such a structure — for example, “Hyundai Mobis-Hyundai Motor-Kia-Hyundai Mobis” — a group can control the broader conglomerate with relatively small stakes. Converting that into a simpler, linear structure remains a long-standing goal for the group. * This article has been translated by AI. 2026-03-17 17:11:06 -
Airlines set to hike fuel surcharges amid rising oil prices SEOUL, March 16 (AJP) - Airlines are raising their fuel surcharges due to soaring oil prices amid the escalating conflict in the Middle East. Fuel surcharges are applied on both international and domestic flight routes based on changes in the average price of fuel traded on Singapore's spot market. According to aviation industry data released on Monday, the average price of Singapore jet fuel, known as MOPS, is projected to reach at least 300 cents per gallon for the period from Feb. 16 to March 15, up from 204 cents the previous month. It falls into level 18 on the 33-tier fuel surcharge scale, a jump of 12 levels from the current level of 6, the biggest jump since this scale was first implemented in 2016 and also the highest level since October 2022, when it reached level 17 at the height of Russia's war in Ukraine. Fuel surcharges imposed by airlines are expected to soar by more than threefold. For one-way tickets on Asiana Airlines, surcharges that ranged from 14,600 (US$9.93) to 78,600 Korean won this month, depending on flight routes, are set to jump to between 43,900 and 251,900 won next month. Flagship carrier Korean Air is expected to adjust its fuel surcharges for April next week, with a sharp increase likely unavoidable. 2026-03-16 15:02:22 -
Airline Fuel Surcharges to Jump in April on Middle East Risks, Biggest Rise in a Decade Geopolitical risks tied to the Middle East are set to sharply raise fuel surcharges on international airline tickets issued in April. According to the aviation industry on the 16th, the Singapore jet fuel average price (MOPS) for Feb. 16 to March 15—the benchmark for April surcharges—corresponds to level 18 out of 33. That is a jump of 12 levels from level 6 applied this month, the biggest increase since the current surcharge system was introduced in 2016. It is also the highest level since October 2022 (level 17), when the Russia-Ukraine war was at its peak, marking the highest in three years and six months. Domestic airlines plan to raise April fuel surcharges by as much as more than threefold. Asiana Airlines charged 14,600 won to 78,600 won per one-way ticket this month, but will apply 43,900 won to 251,900 won next month. The shortest routes—including Fukuoka, Yantai, Kumamoto and Qingdao—will be charged 43,900 won, while the longest routes—including Los Angeles, New York, Paris and London—will carry a 251,900 won surcharge. Korean Air is also set to announce its April fuel surcharge later on the 16th. The increase is expected to exceed 100,000 won on the longest routes compared with this month’s 13,500 won to 99,000 won range. International oil prices have climbed sharply since the Middle East situation that began late last month, while the won-dollar exchange rate has remained elevated, topping 1,500 won intraday. Fuel surcharges are added to fares to offset airline losses from higher oil prices. Under the Transport Ministry’s distance-based system, each carrier sets monthly charges after making its own adjustments. * This article has been translated by AI. 2026-03-16 13:45:21 -
Korea’s Big 3 Budget Airlines Lack Fuel Hedges as Fares Set to Rise in April-May Geopolitical risks tied to the Middle East have increased airlines’ exposure to oil-price swings, and the burden is expected to be heavier for low-cost carriers that do not have fuel hedging contracts. Airfares are also expected to rise from April and May. According to industry officials on Wednesday, the so-called LCC Big 3 — Jeju Air, Jin Air and T’way Air — do not currently have separate fuel hedging contracts. Other low-cost carriers also do not have such contracts. A fuel hedging contract is a type of derivative used when buying jet fuel on a relatively mid- to long-term basis. It sets both upper and lower price limits to reduce management risk from later price fluctuations, helping airlines cushion costs when oil prices are volatile. With international oil prices rising in the wake of the Middle East war, low-cost carriers without hedges face higher costs. The global average jet fuel price in the first week of March was $157.41 a barrel, up about 58.4% from the previous week. In the last week of February, it was $99.40 a barrel, up 3.6% from the prior week, before the increase accelerated. The rise is expected to feed into higher ticket prices. Korean airlines have already announced they will raise domestic-route fuel surcharges in April to 7,700 won from 6,600 won in March. That calculation included only a single day — Feb. 28, the first day of U.S. and Israeli airstrikes on Iran — and oil prices have surged since then, raising expectations that May surcharges will jump sharply. April fuel surcharges for international routes are also expected to be announced soon, with a larger increase anticipated than for domestic routes because longer flights make fuel a bigger share of ticket prices. The April international surcharge is calculated using average jet fuel prices from Feb. 16 to March 15, meaning it is more likely to reflect the impact of the Middle East war. The exchange rate is another variable because fuel is paid for in U.S. dollars. As the dollar strengthened on concerns that high oil prices could persist due to the war, the won-dollar exchange rate rose to 1,495.5 won on March 9, nearing the 1,500-won level. With high oil prices and a weak won overlapping, losses at low-cost carriers already struggling with weak results are expected to widen. An airline official said low-cost carriers are believed to be unable to buy derivatives given the amount of jet fuel they consume annually. The official said they are instead responding by ordering slightly more fuel than needed when placing orders with fueling companies. * This article has been translated by AI. 2026-03-12 18:03:16 -
Yellow Envelope Law Takes Effect as Hyundai, Shipbuilding Subcontractor Unions Renew Bargaining Demands With the so-called Yellow Envelope Law — revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act — taking effect, labor-management tensions are rising. Industry officials said the Hyundai Motor subcontractor union, the Hyundai Motor Non-Regular Workers Branch, plans to send a third request for talks to the parent company on Tuesday through its umbrella group, the Korean Metal Workers’ Union. The union has already delivered two formal requests but said the company did not respond. It is seeking discussions with the parent company on converting workers to regular status and steps to ease job insecurity. The in-house subcontractor union at HD Hyundai Heavy Industries, also affiliated with the Korean Metal Workers’ Union under the Korean Confederation of Trade Unions, said it will deliver a bargaining request to HD Hyundai Heavy Industries on Tuesday. The union said it sent two letters in January but received no meaningful response, and is renewing its demand to coincide with the law’s start. The union is seeking a 30% wage increase this year, the same performance bonuses as the parent company, recognition of an eight-hour day as one work unit, and at least five days of paid holidays. It is also considering asking that its demands be included in the parent company union’s bargaining agenda if management refuses to negotiate directly. The Ulsan Plant Construction Union said it will begin sending bargaining requests Tuesday, through its umbrella organization, to three petrochemical companies — SK, S-Oil and Korea Zinc — and to four general contractors including Hyundai Engineering & Construction and Hyundai Engineering. These subcontractor unions argue the parent companies should be bargaining counterparts because they effectively receive safety instructions and day-to-day work supervision from them. As subcontractor unions across industries press for direct talks, parent companies are holding back from immediate public responses while weighing how to proceed. Some companies are consulting law firms and preparing for possible scenarios. Overall, many are waiting to see how labor authorities rule on whether parent companies qualify as employers for bargaining purposes. * This article has been translated by AI. 2026-03-10 14:06:17 -
Korea GM, Union Near Deal to Keep 3 of 9 Service Centers Open; Talks Resume Korea GM and its labor union have reached a working-level understanding to keep some company-run service centers open, rather than shutting them all, industry sources said. Final issues include how to reassign service-center staff to plants and the terms of any voluntary retirement program. According to the industry on the 10th, the two sides will hold a second round of main talks at 10 a.m. at the company’s headquarters to discuss the planned closure of its company-owned service centers. They have continued working-level discussions since the first main talks in January and are returning to formal negotiations as their positions have narrowed. Korea GM previously said it would close all nine of its company-run service centers nationwide as of Feb. 15. To improve financial health, it planned to sell assets including service-center sites and shift maintenance and repair work to 383 partner service centers nationwide. After the union pushed back and filed legal action, including a request for an injunction, the sides began seeking a compromise through a working-level consultative body. So far, they have tentatively agreed to close six of the nine centers. The plan would keep the Daejeon, Jeonju and Changwon service centers operating and establish a “high-tech center” in Bupyeong. The high-tech center would handle work that is difficult to resolve through partner service centers. A union official said the high-tech center is intended to fill gaps created by reducing the company-run network to three sites and to take on cases requiring advanced, specialized repair skills, either by referral from partner centers or by handling them directly. The key test will be the second round of main talks. Because the plan remains tentative, some union members may oppose it. The downsizing also leaves unresolved what happens to surplus staff. About 320 engineers work across the nine service centers, but if the plan is finalized, the required headcount would fall to about 70, including the high-tech center. That would leave roughly 250 workers to be reassigned to production jobs or to take voluntary retirement. Those who want to stay are expected to be transferred to the Changwon and Bupyeong plants. For voluntary retirement, terms are also an issue; a proposal has been discussed to pay 10 million won per person in consolation money, according to the report. If an agreement is finalized in the second round of talks, speculation that Korea GM could withdraw from South Korea is expected to ease. But the union official said strong opposition cannot be ruled out because the changes would sharply reduce the service-center operation, adding that the main talks will decide whether to approve the plan.* This article has been translated by AI. 2026-03-10 09:03:30