For those following developments in the Korean auto industry, the first quarter of 2006 has certainly proven to be anything but mundane. Recent headlines have touted the further expansion of Hyundai and KIA’s global production networks and the rising brand image being enjoyed by Korean automobiles. Not all of the news has been positive, however—despite strong sales, both KIA and Hyundai have struggled with narrowing profit margins, primarily as the result of an appreciating Korean won. Separately, an investigation has been launched into allegations against Hyundai of illegal lobbying.