logo
Deutsch Automobile Group aspires to become total mobility platform

Deutsch Automobile Group aspires to become total mobility platform

Korea Herald16-06-2025
Korean auto dealer ramps up multibrand strategy with new partnerships across EV, luxury segments
Deutsch Automobile Group, one of the biggest dealers in Korea's auto import industry, is zeroing in on becoming a total mobility platform company based on customer-oriented data and technology over the next decade.
'Going beyond the traditional concept of simply selling cars and doing repair works, my vision is to expand into a total mobility platform that can account for daily life of mobility such as (auto) sharing, subscription, finance, charging and digital experiences,' said Kwon Hyeok-min, vice chairman of Deutsch Automobile Group, in an interview with The Korea Herald at the firm's headquarters in Seoul on Thursday.
'In a macroscopic environment with relentless changes and challenges, I believe that our group's strategy to increase core capabilities through an open network through our value chain to make Deutsch Automobile Group move forward unwaveringly is going to be the foundation to realize that vision.'
Kwon has focused on revisiting the group's traditional business of auto dealerships, setting up mid- to long-term goals to further solidify the trust between customers, shareholders and employees since he became the vice president of Deutsch Automobile Group in November.
As a result of customer-focused retail strategies, diversification of business portfolio and strengthening the efficiency of internal operations, Deutsch Motors, the holding company of Deutsch Automobile Group, posted 578.2 billion won ($423.2 million) in revenue and 7.9 billion in operating profit in the first quarter of this year, up 21.5 percent and 52.9 percent, respectively, compared to the same period last year.
Kwon noted that he expects this year to bring meaningful returns from the company's multibrand strategy, which has expanded the auto import brands it deals from six — BMW, Mini, Jaguar Land Rover, Porsche, Audi and Lamborghini — in 2023 to nine this year with the additions of Aston Martin, BYD and McLaren.
Being one of the six local dealers for Chinese electric vehicle giant BYD, the chief of Deutsch Automobile Group pointed out that the performance of BYD cars exceeded his expectations and was very satisfactory.
'We want to discuss with BYD Korea to offer more competitive prices for customers so that they can experience the brand's vehicles,' said Kwon. 'Because each customer knows very well about (cars), products without fundamentals cannot be delivered. As we have confidence in BYD's product, we are aiming to provide experiences to feel the brand and its strengths.'
As for McLaren, the latest super luxury partner brand Deutsch Automobile Group represents in Korea, Kwon said a rebranding ceremony slated for early July will offer a more up-close experience for potential customers.
'We will have a VIP coming to Korea (for the rebranding ceremony) from McLaren headquarters,' he said. 'Our goal is to deliver the brand's philosophy and give a unique brand experience, which is more personal and private for high-end customers to establish close ties.'
Cars after sale
Kwon pointed out the importance of covering the full life cycle of vehicles, including the sectors of used cars and recycling auto parts, for Deutsch Automobile Group. Deutsch Autoworld's Charancha and DT Innovation were mentioned as two key pillars to that end.
Based on Deutsch Autoworld — the world's largest single car dealership building verified by the Guinness World Records in 2019 with 167,046 square meters of showroom area capable of displaying about 12,000 cars at once — in Suwon, Gyeonggi Province, Characha is looking to go beyond an online used car platform to make the used car market more transparent, according to Kwon.
'As for Charancha, we are working on a project based on Web3 with partners to advance it into a mass platform that handles all transportation services such as used cars, rentals and car deliveries,' said Kwon.
'We signed (a memorandum of understanding) with SK Speedmate to develop an extended warranty service for used cars. With the extended warranty, customers can visit an SK Speedmate center for repair works, and we are going to manage records through blockchain technology to make tampering impossible. In this way, Charancha customers have nothing to worry about cars having a tampered maintenance history.'
On top of keeping a car's maintenance history secured, Kwon also underscored that Charancha is preparing to launch a drive-to-earn, or D2E, service based on Web3 technology. The envisioned D2E service will offer various types of rewards to drivers depending on how safe, efficient and long they drive.
While Characha takes care of a vehicle's lifetime on the road, DT Innovation deals with the afterlife of a vehicle as it works in the downstream part of the auto industry through recycling. DT Innovation's current business areas include recycling parts of used cars, auctioning damaged cars, and selling and buying used car parts with the intention to expand into recycling used batteries from electric vehicles in the future.
'We launched a service called DT Auction early this year to offer a more convenient way to deal with auto parts for retailers and individuals,' said Kwon. 'To this end, we took over an auto salvage yard in South Gyeongsang Province to bolster the trading of used auto parts. DT Innovation's objective is to create maximum value from decommissioned cars and a sustainable circular economy.'
As Deutsch Automobile Group progresses towards becoming a total mobility platform, Kwon emphasized that its highest value will always be about customer satisfaction under the company's philosophy of righteous business administration.
'We are looking to offer active support and growth opportunities to employees so they can become global talents in a fast-changing industry environment,' he said.
'Through this, Deutsch Automobile Group aims to become a name that is trusted both at home and in the global market as a main company that advances technology, customers, humanity and society in a sustainable mobility ecosystem.'
The Top 100 Global Innovators series spotlights the trailblazers shaping Korea's future across a range of industries — from bold entrepreneurs and tech pioneers to research leaders — whose innovations are making a global impact beyond Korea. More than a celebration of success, the series offers a deeper exploration of the ideas, breakthroughs and strategies driving their achievements. — Ed.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Industry minister ends 2-day tariff talks with Lutnick without results
Industry minister ends 2-day tariff talks with Lutnick without results

Korea Herald

time7 hours ago

  • Korea Herald

Industry minister ends 2-day tariff talks with Lutnick without results

South Korean Industry Minister Kim Jung-kwan has wrapped up his two-day tariff talks with US Commerce Secretary Howard Lutnick, without tangible results, sources said Saturday. Kim and Lutnick's second-day meeting, which took place at Lutnick's residence in New York, finished late Friday night (US time) without solid results, according to the sources familiar with the matter. The two had also met the previous day in Washington to discuss pending trade issues, including tariffs, non-tariff measures and industrial cooperation. In Friday's meeting, Kim is said to have presented a revised proposal to narrow their differences on contentious items, including the $100 billion investment plan by Korean companies in the US and what Washington calls "trade barriers" on beef and rice imports by Seoul. The Donald Trump administration has reportedly been pressuring Korea to lift its import ban on American beef from cattle aged 30 months or older and expand rice imports from the US. However, the advanced proposal appears to have fallen short of satisfying Lutnick, as the sources indicated South Korea needs further "internal discussions" based on the results of this week's negotiations. The presidential office is reportedly planning to hold another trade strategy meeting later in the day to discuss the next steps toward securing a tariff deal with the US, following a similar session held the previous day. South Korea faces added pressure in the negotiations as Japan, one of its major export competitors, recently concluded a trade deal with Washington that lowered reciprocal tariffs to 15 percent in exchange for further opening of its markets to American automobiles and agricultural products, along with a $550 billion investment pledge. The Trump administration has warned Korea will be subject to a 25 percent reciprocal tariff unless it reaches a deal before Aug. 1. Meanwhile, Kim also met with US Energy Secretary Chris Wright and Interior Secretary Doug Burgum, who doubles as chairman of the National Energy Council, this week to discuss strengthening cooperation in areas such as liquefied natural gas, energy security and critical minerals, according to his office. Trade Minister Yeo Han-koo also held separate meetings with US Trade Representative Jamieson Greer and Texas Gov. Greg Abbott in a bid to make progress in trade negotiations. (Yonhap)

CGTN: How China's economy remains vibrant despite U.S. tariff war
CGTN: How China's economy remains vibrant despite U.S. tariff war

Korea Herald

time7 hours ago

  • Korea Herald

CGTN: How China's economy remains vibrant despite U.S. tariff war

BEIJING, July 26, 2025 /PRNewswire/ -- With Chinese Vice Premier He Lifeng to hold economic and trade talks with the United States in Sweden later this month, the strength and resilience of the Chinese economy is in the limelight once again. This round of talks, mutually agreed upon by both nations, is not only a diplomatic engagement but also a testament to China's enduring economic vitality in a complex international environment. Recent statistics underscore the robustness of China's economy. In the first half of 2025, the GDP grew by an impressive 5.3 percent year on year, surpassing market expectations despite global headwinds. This number reflects more than temporary growth; it exhibits the structural resilience and adaptability of an economy that continues to evolve and upgrade. Domestic demand emerged as the cornerstone of growth, contributing 68.8 percent to GDP expansion in this period. Initiatives such as large-scale equipment upgrades and consumer goods trade-in programs have effectively stimulated spending, cushioning China's economy from external shocks. In the first five months of 2025 alone, China's consumer goods trade-in program generated 1.1 trillion yuan ($153.1 billion) in sales, surpassing the figure for entire 2024. Boosted by the program, China's retail sales of consumer goods grew 5 percent year on year in the past six months – 0.4 percentage point faster than the growth recorded in the first quarter. While external uncertainties have introduced some pressure, China's trade diversification and the steady output of high-tech manufacturing and service industries have provided strong support to the economy. Though China's trade with some Western countries declined, its trade with Belt and Road partners, ASEAN countries, the European Union, and African nations saw respective increases of 4.7 percent, 9.6 percent, 3.5 percent, and 14.4 percent in the first half of 2025. This expansion of trade relationships has helped China reduce its reliance on any one market, lessening the impact of some Western economies' protectionist policies. China's resilience reverberates beyond its borders. As a crucial driver of global growth, China's steady economic performance boosts international market confidence and provides a stabilizing influence amid global uncertainties. Through continued focus on quality growth and opening up, China offers the international community a reliable engine for shared prosperity. A recent report from the U.S.-China Business Council indicates that 82 percent of American companies operating in China turned a profit in 2024. Though many cited the uncertainties in China-U.S. relations and tariffs as their main worry, the Chinese market continues to be crucial for them. Trade tensions pose obstacles, yet they have not crippled the resilience in the Chinese economy. The upcoming Beijing-Washington talks in Sweden demonstrate China's willingness to tackle differences via negotiations. While obstacles remain, China's ability to sustain growth, adapt to changing global landscapes, and engage constructively with international partners signals a future of shared opportunities and mutual advancement.

US delays crucial ‘2+2' trade meeting with Korea
US delays crucial ‘2+2' trade meeting with Korea

Korea Herald

time20 hours ago

  • Korea Herald

US delays crucial ‘2+2' trade meeting with Korea

Seoul weighs $100 billion US investment from top chaebol groups to avert looming tariffs A high-level trade meeting between South Korea and the US was abruptly called off Thursday, just one day before it was set to take place in Washington, due to US Treasury Secretary Scott Bessent's "urgent schedule." The delay has sparked concerns in Seoul as next week's tariff deadline approaches with insufficient time for a potential breakthrough. South Korea's Deputy Prime Minister and Finance Minister Koo Yoon-cheol was set to depart for Washington when the US notified Seoul of the last-minute decision. Koo canceled the trip after receiving the notice while waiting at Incheon International Airport, just an hour before his scheduled flight. The now-delayed '2+2" dialogue was to take place between Koo and Trade Minister Yeo Han-koo from Korea, as well as Bessent and US Trade Representative Jamieson Greer from the US. It would have marked the first such meeting under President Lee Jae Myung's new Cabinet. The high-stakes talks were seen in Seoul as a critical opportunity to make a breakthrough in trade talks before the Aug. 1 deadline, when a 25 percent 'reciprocal tariff' will be imposed on all Korean goods unless a new deal is reached. "Washington has apologized multiple times for postponing the meeting and proposed rescheduling the meeting between Bessent and Koo as soon as possible," Seoul's Finance Ministry said. While the US did not clarify the nature of Bessent's scheduling conflict, reports say he may accompany US President Donald Trump's trip to Scotland on July 25-29. This means it could be virtually impossible to reschedule the '2+2' meeting before the tariff deadline, further dimming hopes of a negotiated resolution in time. Despite the disruption, Yeo and Industry Minister Kim Jung-kwan, who are already in Washington, will continue consultations with their US counterparts, including Greer, Secretary of Commerce Howard Lutnick and Secretary of Interior Doug Burgum, according to the Industry Ministry. South Korea has been pushing for reduced tariff rates or exemptions through a comprehensive deal covering both tariffs and broader economic cooperation. Korean exports currently face a 10 percent base tariff with additional levies imposed on key products, such as 25 percent tariffs on automobiles and auto parts, and 50 percent on steel and aluminum. Without a meaningful advancement in negotiations, this baseline tariff is scheduled to increase to 25 percent on Aug. 1, intensifying economic strain on the export-dependent country. Further adding to the pressure, Japan struck a deal with the US on Wednesday. The latter agreed to lower its tariff rate against Japan from 25 percent to 15 percent in exchange for a whopping $550 billion investment in the US and a difficult concession to open its market for more American automobiles and rice. Observers say Japan's deal could serve as a benchmark for South Korea in its own negotiations, as the two countries share similar trade dynamics with the US: both run comparable trade deficits and rely heavily on the US market for key exports, such as automobiles, semiconductors and electronics. Like Japan, South Korea is considering an investment package exceeding $100 billion with participation from the country's major conglomerates, including Samsung, SK, Hyundai Motor and LG, according to industry sources. The figure is expected to grow as additional corporate and government contributions are finalized. Seoul had planned to propose a $100 billion package during the now-postponed talks. President Lee was scheduled to meet with Samsung Electronics Chair Lee Jae-yong on Thursday afternoon, according to local media reports, with discussions expected to focus on the US investment and tariffs. Lee has held similar one-on-one meetings since last week, seeing Hyundai Motor Chair Chung Euisun on July 14, LG Group Chair Koo Kwang-mo on July 15, Hanwha Group Vice Chair Kim Dong-kwan on Tuesday and SK Group Chair Chey Tae-won on Wednesday. Meanwhile, National Security Adviser Wi Sung-lac sought to dispel speculation that he was unable to have a face-to-face meeting with US Secretary of State Marco Rubio during his visit to Washington. Wi explained that Rubio was urgently summoned by Trump, and was unable to meet as the meeting ran longer than expected. Wi said that "sufficient coordination had taken place via phone call" with Rubio, and that they had agreed to have an additional consultation, with the specific time and method to be arranged through working-level coordination. "The report that the US side refused the meeting, resulting in the cancellation of the talks, is inaccurate. Such misinformation not only undermines the reputations of the individuals involved, including Wi and Rubio, but could also negatively impact the trust between Korea and the US in the middle of sensitive communication," Wi said in a written statement.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store