Hyundai and Kia will soon enter Korea’s used car market, although they will have to wait a little longer than initially expected.
The Ministry of SMEs and Startups in the country recently determined that secondhand car sales are not a so-called ‘livelihood business’ that would have restricted them to small enterprises and startups. As such, this has opened the door for large car manufacturers to begin selling used cars in Korea.
Hyundai and Kia had planned to enter the market in May this year but this has now been delayed until May 2023 and only after a four-month test period where the car manufacturers will each be permitted to sell less than 5,000 certified used cars.
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Korea Times reports that the government has stipulated Hyundai can only handle 2.9 per cent of the country’s used car sales from May 2023 to April 2024 and 4.1 per cent the following year. Kia can take a 2.1 per cent share of the market in the first year and 2.9 per cent in the second year. Hyundai and Kia are also only allowed to buy used cars from customers planning to buy new vehicles through the respective brands.
Both car manufacturers have said they will only purchase their own brand vehicles that have been on the road for less than five years and driven fewer than 100,000 km (62,000 miles). Each used vehicle will have to pass a strict quality test before being sold. Hyundai will also launch a trade-in program where it purchases used vehicles and provides shoppers with discounts on new vehicles. Kia will also offer customers the opportunity to test a used vehicle for one month before deciding if they want to purchase it or subscribe to it.
