Kia Mulls Price Hikes Outside Korea

Kia Motors is considering price increases overseas in addition to strenuous cost cutting to cope with South Korea's rising won, The Wall Street Journal reports.

"Exchange rates are out of control," COO Thomas Oh tells the news service. The strong won makes Korean-built vehicles more expensive in overseas markets and shrinks repatriated earnings.

The company blames the currency squeeze for much of the 51% year-over-year plunge in its operating profit to 404.3 billion won ($371 million) in the October-December period.

Half the 2.2 million vehicles Kia sold last year were exported from Korea. Oh says the company's Japanese and U.S. rivals are using "aggressive" marketing to intensify competitive pressure.