According to Yonhap News,

(SEOUL = Yonhap News) More European automakers operating car sales businesses in Korea have begun to invest in research and development (R&D) areas.

While the automakers benefited from Korea’s booming car market, more and more companies are expected to use Korea’s advanced information technology and develop the technological infrastructure necessary to penetrate the global electric device market, which is regarded as the new growth engine for the auto industry.

According to industry sources on April 8, Mercedes-Benz Korea will invest EUR 70 million (KRW 123 billion) over the next two to three years to establish an auto parts distribution center, a training center and an R&D center in Korea.

Mercedes-Benz Korea will conduct R&D on telematics technology in Korea, a country with strong IT capabilities.

BMW Korea also plans to establish a new R&D center in Korea this year. A group of about 15 researchers will be dispatched to the center and focus on developing “infotainment systems,” such as in-vehicle audio systems and navigation systems.

Analysis shows that such investments in R&D are closely related to global auto companies’ efforts to develop new automotive operating systems by converging new information technologies.

“Although European automakers possess unparalleled engine and safety technologies, they fall behind when it comes to technological convergence between car production and IT,” said an anonymous industrial official. “They intend to gain such technologies in Korea.”