A high-growth economy

South Korea has an extremely dynamic economy. In 2007, its GDP (Gross Domestic Product) reached 982 billion dollars. Annual growth is around 5%. The economy is well balanced thanks to increased domestic spending and vibrant foreign trade. The Korean economy is sound, with inflation standing at 2.5% in 2007. The country’s leading industrial sectors are consumer electronics, automotive manufacture and steel.

The boom in the Korean automobile industry

The automobile is a pillar of South Korea’s economic growth. The country is the 5th largest automobile maker in the world, producing 3.8 million units in 2006, of which two thirds were exported. Sales reached 1.26 million vehicles in 2007 (all brands combined). The South Korean automobile market enjoys a very positive growth outlook as the ownership rate per household contains room for further expansion.

Renault Samsung Motors

In 2000, Renault acquired the Samsung Group’s Automobile Division and created the Renault Samsung Motors company. RSM is the driving force behind the Group’s development in Asia and controlled 9.3% of the Korean market for commercial and passenger vehicles in 2007. RSM ranks 4th behind Hyundai (which has dominated the market for a number of years and is the only remaining Korean automobile group), Kia and GM Daewoo. RSM operates a network of 176 sales outlets. Its workforce has more than doubled since its creation, from 3,028 employees in 2000 to 7,248 in 2007.

Modern, cutting-edge facilities

RSM’s ultra-modern production facilities at Busan have a production capacity of 300,000 vehicles per year (2007). The Busan plant produces SM3, SM5, and SM7 vehicles, as well as QM5/Koleos, the most recent addition to the product line.
The state-of-the-art Renault Samsung Technical Center (RSTC) at Kihueng brings together 342 engineers and technicians from Korea, Japan and France.
The Creative Center, a design powerhouse and a window on the latest Asian trends, works closely with Renault’s other design centers.

QM5: the Renault Group in the crossover market

To complement its sedans already marketed in Korea (SM7, SM5 and SM3), the Group launched QM5 in November 2007. A cross between a 4x4 and a high-end sedan, this vehicle illustrates how expertise is shared within the Group. Conceived and designed by Renault, QM5 was developed by Nissan and manufactured by Renault Samsung Motors. RSM also manufactures Koleos, a Renault crossover targeting other markets.