Korea on Wednesday dismissed as groundless France’s claim that its domestic auto market has been hit by a surge in imports of Korean vehicles.

Last month, France made a request to the European Commission, the executive body of the European Union, that Korean autos be on a prior surveillance list, which could trigger a safeguard measure against imports from Korea in the worst case scenario. The commission is set to announce early next month whether to accept France’s claim.

“We analyzed auto trade with the EU, and concluded that their claims are groundless,” said an official at the ministry. “It is true that auto exports to France surged in the first two months of the year, but sales growth decelerated in the April-June period,” he said.

Autos exported to France are manufactured in the EU region, not shipped from South Korea, and imports of European cars into Asia’s fourth-largest economy also surged after the free trade deal came into effect, the official said. Hyundai and Kia operates its plants in Turkey and Czech Republic.

Korea and the EU implemented their free trade pact on July 1 last year.

France’s move came as its automakers are losing ground in the face of rising competition. The country’s biggest carmaker, PSA Peugeot Citroen, last month announced plans to cut jobs and shut down a plant in France.

Korea’s leading automakers Hyundai Motor Co. and Kia Motors Co. saw their combined share of the European market hit an all-time high in June despite the region’s sluggish demand, industry data showed.

Hyundai and Kia’s market share reached 6.3 percent of Europe’s passenger car market in June, up from the previous 6.1 percent record in April, according to the data released by the European Automobile Manufacturers’ Association.

In the first six months of the year, Hyundai and Kia posted a combined 5.9 percent market share in Europe, with sales rising 12.2 percent to 232,454 units and 25.1 percent to 173,232 vehicles, respectively. (Yonhap News)