Cheaper Korean cars? Not yet

THE Korean free trade agreement came into effect in December, removing the five percent import tariff that should mean cheaper cars.

Brands impacted include Holden, Hyundai and Kia, but none of them have implemented price cuts.

It seems each is keen to recoup some of the margins lost in exchangerate fluctuations. The dollar has dropped 26 percent versus the Korean won since 2012 (in comparison the Aussie dollar has surged 67 percent against the Japanese yen since 2009).

Hyundai and Kia say they will instead add features, with reversing cameras likely to be high on the list.