Dealers of import car brands in South Korea under criticism for allegedly overcharging on repairs and replacements will cut prices on parts and some car models to gain consumer confidence in the market.

Ford Sales & Service Korea Inc., local distributor of U.S. carmaker Ford Motor Co., said Thursday it will lower prices of 10,000 car parts of Ford and Lincoln vehicles that are sold at 29 official showrooms in the country. The discount scheme will be applied to bumpers, headlamps and wheels that are frequently replaced. Discounts would be up to 15 percent tops. The firm’s parts cost two to three times higher than other brands.

Hanbul Motors Corp., Korean distributor of French carmaker Peugeot Citroen Automobiles SA, on the same day introduced similar promotion, offering discounts on parts of cars whose warranties expired. A company official said the company has launched a “New Reborn Service Campaign” to ease customer’s burden on repair costs. Even owners of cars that are out of the warranty period can purchase car parts cheaper thanks to the new discount program. The models that will benefit from the campaign are broadened from Peugeot to Citreon cars. For those who have owned these cars for four to seven years are given a 17 percent discount, over seven years a 25 percent, with additional 15 percent cut on labor charges.

Jaguar Land Rover Korea Co. will offer a 3 million won discount on its sports utility vehicle F-Face, across six models - 20d Prestige, R-Sport, Portfolio, 30d S, First Edition and 35t R-Sport - in an effort to boost sales in the Korean market. It will also offer a five-year-long service plan package that guarantees replacements of essential parts in five years after purchase.

Their decision to lower repair costs and car prices come after the Korean authorities in April started investigation over allegation that dealers of foreign car brands have overcharged parts repair costs under unfair after-sales service terms.

One dealer for Ford Korea until the end of 2015 was accused of exaggerating the degree of damage to stretch the repair bill, according to police investigations at that time. The country’s Fair Trade Commission also ordered import car dealers to correct five areas that work unfavorable for consumers after it reviewed maintenance service clauses of seven foreign car dealers, including Mercedes-Benz Korea, Audi Volkswagen Korea, FCA Korea (Fiat and Chrysler Jeep), Jaguar Land Rover Korea, Korea Nissan, Hanbul Motors (Peugeot Citroen).

By Park Chang-young

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