European carmakers are expected to expand their market presence in South Korea after all import duties levied on midsized and large sedans come down this week, local industry sources said Monday.
Under the free trade agreement (FTA) with the European Union (EU) that went into effect three years ago, Seoul is obligated to remove the 1.6 percent tariffs that have been levied on cars with engine displacements exceeding 1.5 liters starting in July. It must also lower the 4 percent import duties slapped on cars with smaller-sized engines under 1.5 liters to 2.6 percent.