Most imported auto brands operating in Korea face a growing dilemma over whether to raise vehicle prices as the U.S. dollar continues to appreciate against the Korean won.   Foreign brands such as Cadillac and Jeep, which rely exclusively on imports for local sales, must pay for their vehicles in U.S. dollars through their local subsidiaries.   With the dollar still trading at an alarmingly high level of more than 1,470 won — its highest since the 2008 global financial crisis — such brands are being forced to absorb higher costs when importing key models for the Korean market.   They must strike a delicate balance between maintaining profitability and sustaining sales growth — a task made especially difficult by intensifying competition from emerging, price-competitive auto brands, industry officials said.   “For sustainable growth in Korea, the key task for the U.S. auto brands is to defend the reasonable sales price range despite the strengthening dollar,” an official from a foreign auto brand said. “The pricing strategy has gotten more important than before amid the rapid rise of BYD or other price-competitive brands, such as Tesla.”   In 2025, sales of both brands grew rapidly in Korea, driven largely by their strong price competitiveness.   “However, the U.S. auto brands cannot freeze their prices, nor do they push for a slight price increase, as their headquarters will not allow them to do so for their profitability,” the official said.   German automakers such as BMW and Mercedes-Benz use the Korean won to pay for vehicle imports, helping to minimize exposure to external risks stemming from the strengthening euro.   With the won–euro exchange rate following a similar upward trend to the dollar, German auto brands face less currency-related risk than their U.S. counterparts in Korea.   The strengthening dollar and euro, however, present an opportunity for Hyundai Motor and Kia, as the U.S. and Europe are major export markets for the two automakers.   Data from Samsung Securities show that a 1 percent rise in the won–dollar exchange rate boosts Hyundai Motor and Kia’s operating profit by 3.3 percent and 3.4 percent, respectively.   (ICE SEOUL)

Fonte notizia: The Korea Times