Korean carmakers under increasing pressure to hike prices amid Middle East unrest

The escalating military conflict in the Middle East may force local carmakers to increase their vehicle prices, as soaring oil prices will result in higher vehicle production and transportation costs, according to data and experts. West Texas Intermediate (WTI) crude oil was traded at around $65 per barrel on June 10, shortly before the armed conflict between Iran and Israel began, but it has since risen to $73 as of Monday amid growing geopolitical risk in the region. The war between the two countries reached a deeper phase after the United States joined the regional conflict by bombing Iran’s nuclear facilities. Soaring oil prices come as a major risk to the Korean economy in particular, as the country relies heavily on imports of crude oil from the Middle East. Korea sources more than 70 percent of crude oil from the region. Major export-driven manufacturing players, such as carmakers, will be hit hardest by the latest geopolitical uncertainty, as they will have to increase spending on overall production and face supply chain issues due to soaring oil prices. Experts argued that autoWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times