HYUNDAI THINK-TANK REPORT
Korean car makers ‘are on the wrong side of the yen’
Seoul — South Korean car makers face a major headwind from a weakening Japanese yen, which will boost rivals such as Toyota Motor next year, a Hyundai Motor think-tank says. The fall in the yen will intensify competition in major markets, such as China and the US, where overall demand is expected to shrink in 2018, the think-tank said. It projected that the Korean won would fetch 978 per ¥100 next year, compared with 1,018 this year. The re-election in November of Japan’s Prime Minister Shinzo Abe, who favours massive monetary and fiscal stimulus policies, should point to further yen weakness, the think-tank said. Toyota Motor in November raised its forecast for full-year operating profit, in part due to expectations of a weaker yen, which can make goods exported from Japan cheaper and can boost the value of overseas profits when repatriated. "The currency environment is expected to deteriorate next year," Lee Bo-sung, a director of the think-tank, the Global Business Intelligence C...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.