Honda facing `much difficulty` in S. Korea, executive says

GOYANG, South Korea, April 2 (Yonhap) -- An executive of Japan's Honda Motor Co.
acknowledged Thursday the carmaker is having difficulty selling its vehicles in
South Korea because of a stronger yen and tight credit conditions.
Honda, the third-largest automaker in Japan, was overtaken by Germany's BMW AG as
South Korea's biggest foreign brand this year as a firmer yen made its vehicles
more expensive.
"We are going through much difficulty this year," Chung Woo-young, head of
Honda's Korean unit, said on the sidelines of the 2009 Seoul Motor Show.
"Despite difficult business conditions, we had kept our No. 1 place last year,"
Chung said. "Honda Motor will make its utmost efforts to overcome the current
situation."
The yen advanced about 40 percent against the South Korean won in the first two
months of this year, pressuring Honda to raise its vehicle prices for second
time. Its sales in South Korea plunged to 228 units in February, compared with
the 666 vehicles it sold the previous month.
Adding to its difficulties, the local market for imported vehicles is expected to
shrink this year as South Korea heads for its first recession in a decade.
Import sales are likely to drop 17.3 percent this year to 51,000 units, according
to the Korea Automobile Importers and Distributors Association.
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