Free trade agreements are great, as long as the trade is really free, and as long as people stick to the agreements. In Korea, foreign automakers and distributors say Korean lawmakers and government agencies try to keep them out. There  is talk of “import bashing,” says Reuters.

“Korea is a highly protected market. Despite recent agreements to open up its market, the government is not helping … it’s actually doing its best to keep the barriers in place,” Reuters heard from “a senior global automaker executive.” Read More >

GM says it’s not true (yet) what Germany’s Frankfurter Allgemeine Zeitung reports today. The paper says it has it on good authority that by 2014, GM will move production of its Chevrolet Cruze from South Korea to the Opel plant in Gliwice, Poland. Read More >

GM has rocky relations with its Korean unions, and the relations will get a lot rockier if what Germany’s Handelsblatt says is true. According to the report, GM is seriously looking into moving most of the production of the Opel Mokka to Europe.

Currently, the hot selling SUVlet is made in South Korea only.  Says Reuters: Read More >

When there was labor unrest in South Africa, the UAW was quick to spend union dues for a long trip to the scenic South African locale, ostensibly to show  their solidarity with South African union brothers who, coincidentally, fought against Mercedes and Volkswagen. Back home, the UAW pulled a whole packet of race cards. It headlines, a bit strenuously: “South Africans have more rights than workers in Mississippi.”

It would have been more a propos if the UAW would have flown to South Korea to show solidarity with workers  who are about to go on strike against GM, the company, ooops, that is partially owned by the UAW. Read More >

Last month, GM CEO Dan Akerson said that GM might move production away from South Korea if tensions with North Korea escalate. Korea labor unions were not amused, saying that Akerson was using the crisis as a pretext to gain the upper hand in upcoming labor talks.

Last week in Detroit, Akerson told GM’s South Korean union leader that he won’t pull GM out of South Korea. He also said he is unhappy with the Korean union, and that he will bring up the matter this week with South Korea’s President Park Geun-hye, when the “Iron Lady” will visit the U.S. this week.

Now, the union is fuming. Read More >

Hyundai’s top man shot down rumors of his company building a new factory in the U.S.  “We have no plan for a new U.S. factory for now,” Hyundai’s Chairman Chung Mong-koo told Reuters at Seoul’s Gimpo airport before leaving for the United States.

Rumors started flying when South Korea’s Financial News said that Kia is talking to Georgia state officials about constructing a new plant. These rumors were denied. Last week, Chung rekindled the flames by saying that Hyundai “will look into whether there are opportunities” to expand production overseas.

Chung is expected to visit Hyundai and Kia’s U.S. plants in Alabama and Georgia during his visit, which coincides with South Korean President Park Geun-hye’s U.S. trip.

Yesterday, South Korea’s Financial News said Kia is talking to Georgia state officials about constructing a new plant, called “KMMG 2” with an annual output of 150,000 units. This in addition to the plant Kia already has in West Point, GA. Reuters asked around, and received nothing but denials. Read More >

Last week, GM CEO Dan Akerson said that GM might move production away from South Korea if tensions with North Korea escalate. Today, Korea labor unions said Akerson is using the crisis as a pretext to gain the upper hand in upcoming labor talks. Read More >

It’s not just the UAW that is upset about free trade agreements. The Koreans are likewise. The offices of the Korea Automobile Importers and Distributors Association were raided by investigators of the country’s Fair Trade Commission, the Financial Times reports. The agency alleges that BMW, Mercedes-Benz, Volkswagen and Toyota Motor were involved in price collusion. Read More >

Usually, we are not big on COTY’s, but this one is too good to pass up. According to lore, which is sometimes parroted in the comments at TTAC, there is mutual hate between Koreans and Japanese. This did not stop Korean journalists from crowning a Japanese car as Korea’s Car of the year: The Toyota Camry.  This was so momentous that Toyota Korea president Hisao Nakabayashi broke into tears when the award was presented at a Seoul hotel. Read More >

Possibly a bigger scandal is following Hyundai’s MPG brouhaha: There is a stench of insider trading. “This smells pretty bad,” Robert Boxwell, director of consulting firm Opera Advisors in Kuala Lumpur who has studied insider dealing patterns, tells Reuters. Read More >

While Japan may be a “closed market” in the eyes of some, imported cars from America are all the rage in South Korea. Honda is planning on sending no fewer than six American-made cars; the Civic, Accord, Odyssey, CR-V, Crosstour and Pilot will all be sent to South Korea as Honda attempts to become a net exporter of American made vehicles.

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Reuters calls it “one of the more bizarre joint ventures in car-making,” and it is coming to an end. South Korea’s Unification Church, better known as the Moonies, is giving up its investment in the one and only carmaker in North Korea, Pyeonghwa Motors. “Giving up” is carefully chosen: The church will walk away from the business, and donate its 70 percent stake to North Korea. Read More >

GM wants to thin out its South Korean workforce while shifting production to Europe’s higher-wage locations. Korean unions already see it as a declaration of war. Read More >

Labor leaders in South Korea are scrambling to convince GM to retain production of the Chevrolet Cruze in South Korea, though GM says that the move to 5 global facilities is a done deal.

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