[2020 National Audit] Hyundai Motor "Entry into Used Car Market Needed for Consumer Welfare"

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company has expressed the opinion that entry into the used car market is necessary from the perspective of consumer protection and welfare. The company also announced plans to create an open platform that can share the history and quality of used cars, sharing information with used car dealers and promoting coexistence.

At the National Assembly’s Ministry of SMEs and Startups audit held on the 8th, Kim Dong-wook, Executive Director of Hyundai Motor, stated, "Currently, the used car market is dominated by public opinion that there are problems in transaction practices such as price estimation and quality inquiry," adding, "We need to consider the necessity of finished car manufacturers entering the used car market to protect new car buyers."

He explained the market mechanism where new car buyers of finished car manufacturers soon become suppliers of used cars, emphasizing that the entry of finished car manufacturers into the used car market is inevitable to protect the welfare of new car customers. Executive Director Kim said, "New cars sold inevitably become used cars, so used car transactions are inevitable," and stressed, "From the manufacturer’s perspective, guaranteeing the quality of used cars and accurately diagnosing and repairing problems is as important as selling new cars."

On the 8th, businesspeople are taking the witness oath at the National Assembly's Industry, Trade and Energy Committee's audit session.
Photo by Yonhap News

During the audit, issues of fairness between domestic and international markets were also raised regarding large corporations entering the used car market. Currently, all Hyundai Motor subsidiaries operating overseas are engaged in the used car business abroad, and imported car brands that have entered the domestic market also operate certified used car businesses domestically.

On the same day, Hyundai Motor emphasized the necessity of entering the imported car market and declared plans to create an open platform to share Hyundai’s automotive-related know-how. Through this, they plan to build a system that can increase transparency in quality evaluation and price estimation.

On the other hand, the used car sales industry opposed, arguing that if Hyundai-Kia Motors enter the used car market, they would monopolize the collection of used cars, making coexistence impossible. In response, Executive Director Kim said, "We will discuss with the Ministry of SMEs and Startups to limit the scope of the business," adding, "Even if (used car) collection is done, if the vehicles are outside the business scope, we can consider various methods such as supplying them so that used car dealers can continue their business."

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