He expected the sale of the Clio hatchback to reach between 4,000 to 5,000 units this year, absorbing "pent-up" demand for small and fuel-efficient vehicles.

The Korean market has been dominated by mid- and large-size vehicles but recent robust sales of the QM3 compact SUV indicate that the demand for "practical" small vehicles is on the rise, Park said.

Many Koreans still prefer midsize or bigger cars as they equate the size and price of a car with social status. But there have been few "right models" to attract customers in the subcompact or smaller vehicle segment, he said.

The Clio hatchback will be shipped to the Korean market after being manufactured in Renault's factories in Europe due to cost reasons.

The vehicle, equipped with a 1.5-liter gasoline engine, will compete with a Peugeot 208 five-door hatchback with a 1.6-liter petrol engine and Volkswagen's Golf hatchback with a 2.0-liter gasoline mill, the company said.

It is expected to carry a price tag of less than 30 million won ($26,400) in the domestic market to woo customers.

In the January-May period, Renault Samsung sold 109,080 vehicles, up 8.3 percent from 100,677 a year earlier mainly due to the popularity of its QM3 crossover SUV and SM6 midsize sedan. (Yonhap)