According to Yonhap News,

(SEOUL = Yonhap News) Mercedes-Benz Korea decided to invest a total of EUR 70 million (KRW 123 billion) in Korea over the next two to three years for the establishment of a research and development (R&D) center and other projects.

The announcement was made by Britta Seeger, President and CEO of Mercedes-Benz Korea, in an interview with Yonhap News on March 9. Seeger said that the company decided to invest because “it has a strong faith in the Korean market.”

Through such investment, the company will initiate four new projects - establishment of an R&D center, a parts distribution center and a technical training center, and creation of a social contribution fund.

Plans for the four new projects were announced by Dieter Zetsche, Chairman of Daimler AG and Head of Mercedes-Benz Cars Division, in a press conference that was held during his visit to Korea last October.

“The parts distribution center, which will receive the biggest investment, will open in July. This will be followed by construction of the training center,” said Seeger. She added that “The R&D center will primarily focus on developing driver-assistance systems and telematics technology.”

While the parts distribution center and training center will be established to serve Korean customers better amid growing sales, the R&D center is considered a more future-oriented investment.

When asked why the company is planning to establish an R&D center in Korea when it already has a research facility in its Germany headquarters, Seeger answered that “Most Korean customers are trendsetters, and there is a lot to learn from the Korean market.”

In regards to the social contribution fund creation plan, Seeger said that Mercedes-Benz Korea, Daimler Trucks Korea Ltd. and official dealers will jointly create the fund in the second quarter of this year.

Seeger also said that Mercedes-Benz Korea set this year’s sales goal five to 10 percent higher than the previous year. The company sold 24,780 units of cars in Korea last year, up 21.5 percent from the year before, so it expects sales figures to come in between 26,000 to 27,000 units this year.

Seeger stressed that “Securing sustainable growth in the Korean market matters more than sales figures.”

To maintain sustainable growth, the company is working to resolve customer complaints about part prices. Seeger said that the company is rationally adjusting parts prices and transparently discloses its price setting process.

Mercedes-Benz Korea has actually cut the price of more than 6,000 parts by an average of 3.4 percent since last January. The company is also looking for suitable locations to establish four more service centers this year.

Last year, when Seeger was appointed as the company’s President and CEO, Mercedes-Benz Korea posted record-high sales of KRW 1.36 trillion and operating profit of KRW 42.3 billion.

“2013 has been a very successful year for us, and our performance here proved the high potential of the Korean market to the company’s headquarters.” said Seeger, who has been in Korea for a year. She concluded the interview by saying “I have strong faith that the Korean market will grow even more going forward.”