According to Yonhap News,

(SEJONG=Yonhap News) South Korea's automobile output rose from a year earlier in July mostly on a large increase in exports, the trade ministry said Thursday.

Overall production by the country's five automakers jumped 22.4 percent on-year to 409,283 cars last month, according to the Ministry of Trade, Industry and Energy.

There was a slight increase in the number of working days in the month as the summer holiday season peaked in early August this year instead of late July like last year, the ministry said in attributing the production hike.

Higher production owes largely to a sharp increase in exports.

"Exports came to 266,741 units, up 16 percent from the same month last year, on improving value of local brands and an additional reduction of import tariffs under the Korea-European Union free trade agreement," the ministry said.

As of the start of last month, all EU countries have completely eliminated a 2 percent import tariff on South Korean passenger cars with an engine size of more than 1.5 liters while also reducing their duties on cars with smaller engines from 5 percent to 3.3 percent.

An exact number of vehicles shipped to EU countries was not currently available, a ministry official said.

Total exports, in terms of monetary value, jumped 20.8 percent on-year to US$4.3 billion.

Domestic sales of cars rose 4 percent on-year to 146,226 units in July, but mostly due to a 21.1 percent spike in the number of imported vehicles sold here. Domestic sales of locally produced cars inched up 1.9 percent to 128,114 units, according to the ministry.

Amid growing demands for South Korean cars in overseas markets, outbound shipments of automobile parts surged to a new monthly high of $2.47 billion, up 12.6 percent from a year earlier.

bdk@yna.co.kr

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