Sales of imported cars falls for first time in 2 years

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SEOUL, Nov. 5 (Yonhap) -- Imported cars in South Korea became the latest victim
of the global financial turmoil now sweeping through Asia's fourth-largest
economy.

Sales of imported automobiles in South Korea fell 14.3 percent from a year
earlier to 4,273 units in October, marking the first monthly drop in nearly two
years, industry data showed Wednesday.
Monthly sales of imported cars in South Korea last fell in December 2006,
according to Park Eun-seok, a spokeswoman at the Korea Automobile Importers and
Distributors Association.
Park attributed the current sales decline to tight credits on auto financing and
stubbornly weak domestic consumption.
"Corporate clients can't buy imported cars because of stricter credit on auto
financing," Park said. Corporate clients account for some 60 percent of total
buyers of imported vehicles, she added.
Last month, Honda Motor Co. was the most popular foreign brand in South Korea
with 693 vehicles sold, followed by BMW at 553 and Mercedes-Benz at 529.
Last week, the Bank of Korea said the nation's consumer sentiment index dropped
to a three-month low in October as asset prices tumbled amid fears of a global
economic recession.
Meanwhile, sales of imported automobiles rose 25.7 percent to 54,654 units in the
first ten months of this year, the association said.
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