Hyundai Motor affiliate Kia Motors posted KRW12.55 trillion won ($11.02bn) in sales and operating profit of KRW1.21 trillion for the second quarter (Q2) this year, up 8.4% and 18.1% year on year respectively, and setting quarterly records.

But net profit contracted 2.8% to KRW 1.96 trillion, the Maeil newspaper said.

First half sales were KRW24.34 trillion and operating profit was KRW2.33 trillion but the latter's growth disappointed as it was below double figures at 9.7%.

"Increased spending on public relations and advertising for new cars put a strain on achieving double-digit OP growth," a market analyst noted.

Global sales rose 12.4% to 1.39m units as domestic sales slumped 3.9% due to a sluggish economy and rising foreign competition.