"In the past, we operated according to the principles and systems of our German headquarters, but now we can make decisions tailored to the Korean market. The past year has been a time of transformation for Star Truck Korea into a company that is more attuned to Korea."
Dong Geun-tae, CEO of Star Truck Korea, recently spoke with Aju Economy at the company's headquarters in Jung-gu, Seoul, highlighting the most significant change since the company's launch: localization. He explained that the company has shifted from strictly applying global standards from Germany to quickly adapting to the needs of domestic commercial vehicle customers and market conditions.
Founded in September 2025, Star Truck Korea is the official importer and distributor of Mercedes-Benz trucks in South Korea. It was established as a joint venture between FMK, a subsidiary of the Hyosung Group, and Daimler Truck, the world's largest commercial vehicle manufacturer, based on the existing Daimler Truck Korea. With FMK acquiring a majority stake, the management autonomy of the Korean entity has significantly increased. The company focuses on a wide range of commercial vehicles, including large tractors, dump trucks, cargo trucks, and multipurpose special trucks.
Upon taking office as the inaugural CEO about a year ago, Dong prioritized overhauling the internal operational system. The existing global IT system, designed primarily for passenger vehicles, made it difficult to respond quickly to requests from domestic customers and dealers. Star Truck Korea has since established a dealer management system (DMS) and customer relationship management (CRM) tailored to the scale of its domestic operations and customer characteristics, which have been in use since the first quarter of this year.
Dong noted, "The old system felt like a very large, heavy coat for the Korean situation. Now, we are wearing a suit that fits our body, allowing for rapid communication among customers, dealers, and headquarters." He added that other countries are considering adopting the operational system developed by Star Truck Korea.
The localization efforts have also yielded results in the commercial vehicle lineup. The company has developed models optimized for the Korean environment, such as the 'New Arocs 4153K Single Reduction Dump' introduced in June. This model was developed after studying Korean roads, terrain, and driving habits, with reinforced key components like the drive shaft and specifications tailored to the domestic transport environment. Dong stated, "We dedicated three years to creating a Korean model, communicating various needs to headquarters, which allowed us to launch a Korean-style dump truck. This will accelerate the introduction of more Korean models."
Star Truck Korea is also collaborating with local bodybuilders to optimize its offerings for the Korean market. Starting this month, the company will work with domestic bodybuilders to modify cargo trucks into wing bodies, tankers, and refrigerated trucks. Bodybuilders play a crucial role in adapting vehicles for specific uses, and this partnership aims to enhance safety and functionality for consumers.
Currently, the company plans to stabilize its business portfolio. It aims to shift from the current structure of 50% tractors, 30% cargo, and 20% dump trucks to a more balanced distribution of 40%, 30%, and 30% in the long term. While maintaining its competitive edge as the top importer of tractors last year, the company seeks to enhance its competitiveness in the cargo and dump truck segments through Korean-style products.
Dong emphasized 'customer experience' as a key strategy for this initiative. He remarked, "While the brand power of Mercedes-Benz trucks is unmatched, there has been a gap in actual preference. To bridge the gap between brand recognition and actual purchases, we will ensure that many people can experience our brand without hesitation."
Star Truck Korea is actively lowering the barriers for customers to experience Mercedes-Benz trucks in various ways. The company has deployed New Arocs test drive vehicles in major regions across the country and is conducting mobile test drives. Unlike passenger vehicles, test drive services for commercial vehicles like dump trucks, which have a higher price point, are not common in the industry. The focus is on having professionals explain the vehicles and assist customers in experiencing Mercedes-Benz trucks firsthand. Plans are in place to offer mobile test drives for tractor models next year.
The company is also working to enhance the customer experience after vehicle purchases. Dong stated, "We will sequentially renovate the facilities of our 19 service centers across the country by the end of this year and expand technical training and certification for maintenance personnel to elevate service quality. Our goal is to double the number of qualified technicians at dealerships by the end of this year, combining digital and in-person training."
Additionally, the company is strengthening its total cost of ownership (TCO) support system for owners of older vehicles. For instance, it plans to expand the domestic introduction of 'StarTruck Parts,' which are priced about 30-50% lower than genuine parts, to alleviate repair and maintenance costs. Furthermore, it will offer an annual free vehicle inspection service, termed 'Vehicle Health Check,' for ten years after vehicle purchase, including vehicles whose warranty periods have expired, to ensure customers can operate their Mercedes-Benz trucks safely and reliably over the long term.
However, the imported commercial vehicle market has faced challenges in recent years. According to the Korea Automobile Importers and Distributors Association (KAIDA), a total of 2,492 imported commercial vehicles were registered from January to August this year, a 9.3% decrease from 2,749 during the same period last year. Compared to the 3,370 new registrations from January to August 2024, the decline is even more significant at 26.1%.
Dong assessed, "The large imported truck market is currently experiencing a downturn due to sluggish logistics and construction sectors." He added, "I view this as a cyclical economic impact rather than a structural recession, and I believe we can play a significant role regardless of economic conditions by improving services, vehicles, and customer convenience."
* This article has been translated by AI.
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