Hyundai, Kia shares gain on tax breaks to spur domestic sales

SEOUL, April 13 (Yonhap) -- Shares of Hyundai Motor Co. and its affiliate Kia
Motors Corp. rose on Monday after the government offered tax breaks to stimulate
auto sales at home.

The Ministry of Strategy and Finance said on Sunday it will cut taxes, which
would bring down the price of a new car by as much as 2.5 million won (US$1,863),
for people who buy the new car to replace their old one.
Hyundai, South Korea's top carmaker, gained 3.71 percent to 67,100 won at one
point in early morning trading, and Kia was up 5.26 percent to 10,200 won.
"The tax incentive is good news for local automakers," said Suh Sung-moon, an
analyst at Korea Investment & Securities Co. in Seoul.
The government's stimulus plan for the auto industry prompted Suh to raise
Hyundai's domestic sales forecast to 580,000 units this year from his original
prediction of 530,000 vehicles.
The plan would also help Kia sell a total of 357,000 cars in South Korea,
compared with a previous forecast of 327,000 units, Suh said.
The incentive will be offered from May to December this year, according to the
ministry.
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