April 27, 2024

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[THE INVESTOR] Chinese products made up more than one-third of all imported tires in Korea last year, quickly expanding their foothold in the country, industry data showed on Jan. 31. 

Last year, South Korea imported tires worth US$175.26 million from Chinese firms to account for 33.6 percent of the total imports of US$599.07 million, according to data released by the Korea Tire Manufacturers Association. 

Germany came in second accounting for 9.5 percent of the total imports, followed by Japan with 9 percent, US with 8.3 percent, Thailand with 8.1 percent and France at 4.8 percent. 

Breaking down by tire types, Chinese imports made up 79.5 percent of tires for light-duty trucks, boasting its cheaper price tag. 

While Chinese firms accounted for only 15 percent of imported tires for passenger cars, the domestic manufacturers are eying to expand their presence in this division. 

Hangzhou Zhongce Rubber Co., the world’s 10th ranked and China’s largest tire maker, said it will start selling passenger car tires beginning this year in Korea. 

“With tires that are 30 percent cheaper than Korean products, we will enter the Korean passenger car tire market,” Shen Jinrong, chairman of Hangzhou Zhonce Rubber Co., told the Korea Economic Daily during his visit to Korea in December. 

Another Chinese tire maker Doublestar is eying to acquire Korean firm Kumho Tire to expand its market presence in the country. The tie-up will make it the No. 10 tire manufacturer globally, beating its compatriot Hangzhou Zhongce Rubber Co. as the largest Chinese tire maker. 

Earlier this month, Doublestar was selected as the preferred bidder to buy a controlling 42.1 percent stake in Kumho Tire from its creditors.

By Ahn Sung-mi (sahn@heraldcorp.com)