Like parent Hyundai Motor, Kia Motors has been affected by the strong Korean won and has reported a loss for the second consecutive quarter.

The automaker, 39% owned by Hyundai, said that high marketing costs and the strong won had meant 2006 profit as a whole had plunged, according to the BBC.

KIA earnings fell 94% last year to 39.3bn won ($41.9m; £21.3m) and lost 200m won in the three months to the end of December. Annual sales rose 9% to 17.44 trillion won – short of the company’s target. Sales in the quarter rose 11% to 5.1 trillion won, the report said.

The stronger South Korean currency has meant that vehicles are more expensive overseas – and also reduces the value of sales abroad when the income is converted back into the won, the BBC noted.