SEOUL Toyota Motor Korea said Tuesday it is terminating SK Global as one of its four dealers at the end of August because of accounting irregularities at the ailing trading company.
SK Global has been a Toyota dealer since January 2001 and accounted for 40 percent of the automakers sales here last year. Toyota sells only Lexus models in Korea.
Toyota said Lexus sales here last year jumped 350 percent over a year earlier to 2,968 units, making it the No. 2 import brand behind BMW. It expects to sell 3,150 cars this year.
Import sales in South Korea totalled just 16,119 vehicles last year, or 1.3 percent of the overall market.
The Toyota action comes after creditors of SK Global gave final approval last week to a deal to swap up to $2.4 billion in SK Global debt for new shares and convertible bonds, a move that will keep the trading firm afloat.