Foreign brands selling cars in South Korea decided not to offer any refunds

Major foreign brands selling cars in South Korea have decided not to offer any refunds to their customers despite the government’s recent tax cut, claiming that it has already been reflected in their ramped-up sales promotions, company officials said yesterday. The government ended a 1.5-percentage-point excise tax cut at the end of last year. But once it expired, car sales dropped significantly, which promoted the government in early February to extend the consumption-boosting scheme until June. The reduced tax rate will be applied retroactively on cars bought in January. Some foreign auto brands including Volkswagen, BMW and Mercedes-Benz, however, have decided not to offer any refunds to customers, claiming that the tax cut was already reflected in their price tags and it was well notified to customers.

[Photo Description] Mike Arcamone, chief executive officer of GM Daewoo Auto & Technology Co., introduces the company’s chevrolet Orlando sports utility vehicle at an unveiling ceremony in Seoul, South Korea, an Wednesday, Feb. 9, 2011. General Motors Co.’s South Korean unit will begin selling the Chevrolet Orlando crossover vehicle in the country in March as the carmaker introduces new models to boost its local market share.

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