Editor's Opinion: South Korean Auto Market Basically Closed to U. S

While North Korea may be in the midst of starting a war with South Korea, the U. S. auto industry is in a war of its own with South Korea, home of both Hyundai and Kia. Earlier this month President Obama met with South Korean President Lee Myung-bak to discuss allowing free trade, while attending the G20 economic summit. This free trade agreement was just one of many issues President Obama inherited from the previous administration. Unfortunately, after spending countless hours attempting to ratify a new agreement, both countries are at a stalemate.

According to U.S. representatives Dave Camp and Sander Levin, in 2009, South Korea exported more than 476,000 new vehicles here, while on the other hand fewer than 6,000 of our vehicles were accepted by their government - representing less than 1 percent of U. S. vehicles. (The 476,000 exported vehicles don't include the Hyundais and Kias being produced at manufacturing plants in both Georgia and Alabama). Both Hyundai and Kia are on track to have another record new-vehicle sales year, while also exporting over another 400,000 plus vehicles to America this year. Is this a lopsided agreement or what?

Unlike GM and Chrysler, Ford has been an outspoken supporter of an open trade policy. In fact, Ford ran full-page ads earlier this month in newspapers stating: “For every 52 cars Korea ships here, the U.S. can only export one there.” GM has remained neutral since they have ownership stake in a Daewoo plant in South Korea.

Just wondering: How many extra jobs could be created here in the States if South Korea's government allowed us to export 470,000 American-made vehicles into their market? Some critics believe we shouldn't allow any more Korean-based vehicles to be shipped here, until a new agreement is approved, while other have stated that the Obama administration is still working behind the scenes to bring some balance to this lopsided agreement.

Ironically, the U. S. has currently gotten involved in this international issue between North and South Korea.  South Korea is depending upon the U. S. to protect them from North Korea. Conversely, we can't get South Korea to agree on opening up their trade policy to the States. While I'm not a political strategist and don't claim to be one, wouldn't it make sense that if we're coming to the rescue of South Korea that they offer free trade to America?

Jeff Fortson, the editor, posing with Kia's redesigned 2011 Optima.