Hyundai Oilbank Announces Entry into Premium Fuel Market... Launches Renewed 'Kajen' Brand

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Oilbank is igniting marketing competition to capture the market by renewing and launching its premium gasoline brand 'KAZEN'. This is because premium gasoline is the only automotive fuel product experiencing a rapid increase in demand.

'KAZEN' is a combination of 'Kaiser,' meaning emperor, and 'Zenith,' meaning the highest, signifying the pursuit of 'the highest quality' in the premium gasoline sector.

According to the Korea National Oil Corporation, domestic premium gasoline consumption increased from 880,000 barrels in 2016 to 1.35 million barrels last year, an average annual growth of 15.5%, whereas regular gasoline consumption only rose from 78.05 million barrels to 81.48 million barrels during the same period, an average annual increase of 1.4%.

With the recent continuation of low oil prices and a strong preference for imported cars among younger generations, premium gasoline demand is expected to grow rapidly for the time being. High-performance imported cars require premium gasoline because using premium gasoline prevents knocking.

If gasoline does not combust properly, a sound similar to hammering the engine room occurs. Continuous knocking reduces engine output and, in severe cases, damages parts.

Octane rating indicates the degree to which knocking is prevented, and KAZEN’s octane rating is over 100, the highest level in the industry. In Korea, gasoline with an octane rating above 94 is classified as premium gasoline.

Hyundai Oilbank’s KAZEN proved its excellent technology last year by being selected as the official fuel for the Superrace Championship, the largest domestic racing competition.

Hyundai Oilbank plans to install three-dimensional advertisements at the professional football K League, which opens in March, and expand the number of service stations handling KAZEN to 300, double the current number, by the end of the year, aiming to increase its market share from the current 10% range to 25%.

Meanwhile, Hyundai Oilbank opened Korea’s first premium gasoline-only gas station 'KAZEN' in Gangnam, Seoul, in 2004, and the following year expanded KAZEN as a premium gasoline brand, attracting attention.

This content was produced with the assistance of AI translation services.