Sales of imported cars in S. Korea gain 22 pct in June

SEOUL, July 3 (Yonhap) -- Sales of imported vehicles in South Korea rose 22
percent last month from a year earlier, helped by government-initiated tax
benefits meant to spur demand for new cars, industry data showed Friday.

Dealers sold 6,809 imported cars in June, compared with 5,580 units for the same
period last year, the Korea Automobile Importers and Distributors Association
said in a statement. Compared with a month ago, June sales were up 28.2 percent.
"The new-car registration of imported vehicles in June was sharply higher than
that of May, backed by the government's support packages," said Yoon Dae-sung,
managing director at the association, in the statement.
By the end of June, the government had slashed purchasing and registration taxes
by 70 percent for people who bought a new car to replace their old one.
With the tax break having expired, some analysts are predicting that domestic
auto sales will fall again in the coming months as rising unemployment and
falling income could force people to avoid big-ticket spending.
Last month, Germany's BMW was the most popular foreign car brand in South Korea
with 1,086 vehicles sold, followed by Audi with 911 units and Volkswagen with
812, according to the statement.
In the first six months of this year, sales of imported cars in South Korea fell
13.2 percent from a year ago to 29,025 units, it said.
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