South Korea's luxury car imports were expected to rise around 10 percent in 2014 on the back of strong South Korean currency and free trade deal with Europe, a local trade association said Tuesday.
The Korea Automobile Importers and Distributors Association ( KAIDA) said that imports of foreign luxury cars will grow around 10 percent from a year earlier to 174,000 in 2014.
The double-digit growth would come as the appreciation of the South Korean currency against the U.S. dollar was expected to boost demand for foreign currency-denominated foreign cars.
Lower tariffs on cars imported from Europe, with which South Korea reached the free trade deal, was predicted to contribute to strong demand for foreign luxury brands.
The 2014 growth, however, was expected to be lower than a 20 percent increase estimated in 2013 as risk factors remained such as massive household debts and sluggish consumer confidence, the KAIDA said.
The KAIDA said that foreign luxury cars became popular among those in their 20s and 30s, noting that demand for mid-sized cars with an engine displacement of less than 2 liters became stronger.