When South Korea signed a free trade deal with the European Union three years ago, the expectation was that German cars would become cheaper. But the prices of Volkswagen and BMW cars have risen instead of dropping. Only Mercedes-Benz prices are lower, and then by less than was expected. One of the reasons is that value of the South Korean currency, the won, has risen against the EU’s euro. One car importer offered an explanation to the newspaper Chosun Ilbo: “We have no choice but to raise prices because each new model features a wide range of new functions that customers want.”
