Renault drops Samsung from brand name in Korea to end ties

Renault Samsung Motors Corp., the South Korean unit of Renault S.A., has dropped Samsung from its name as the French automaker moves to end 22 years of business ties with the Korean conglomerate.

Renault said on Wednesday it has rebranded the company’s Korean business Renault Korea Motors Co.

Samsung Group entered the automotive industry in 1994 by launching Samsung Motors, which was acquired by Renault in 2000 following the 1997-98 Asian financial crisis.

Renault currently holds an 80.1% stake in the joint venture, while Samsung Card Co. holds 19.9%.

Samsung Card, the second-largest shareholder of Renault Korea, plans to sell its entire stake by the end of this year. Among the interested parties in the stake are Chinese automakers, according to industry watchers.

“We don’t see any further benefit from our partnership with Renault. The French automaker has also established its brand in the Korean market for the past two decades,” said a Samsung official.

Samsung has received royalties from Renault for use of its name in the JV brand. Samsung's brand deal with Renault ended in August 2020 with a probation period of two additional years.

RENAULT TO FOCUS ON EVs IN KOREA

On Wednesday Renault Korea also unveiled its new logo, simplified but maintaining the existing typhoon design.

The company said it will strengthen its lineup for the Korean market, focusing on electric vehicles. To that end, it plans to develop new eco-friendly models both for domestic and overseas markets by cooperating with Zhejiang Geely Holding Group Co., China’s largest privately owned carmaker.

Earlier this year, Geely said it has joined hands with France's Renault to jointly design and produce electric hybrid and gasoline-fueled vehicles in Korea for domestic sales and exports.

The vehicles will be manufactured at Renault Korea’s facility in Busan with production forecast to begin in 2024.

Renault’s Korean business sold 61,096 units in the Korean market in 2021, down 36.3% from the previous year.

Stephane Deblaise, head of Renault Korea Motors, said the company will seek to develop vehicles tailored to Korean tastes as well as suitable for exports.

Write to Il-Gue Kim at Black0419@hankyung.com
In-Soo Nam edited this article.