For now, only a few companies are involved... Major corporations likely to postpone decision on entering used car market until next year

The area around Jang-anpyeong Used Car Market Center in Seongdong-gu, Seoul. The photo is not related to the article. (Photo by Asia Economy DB)

[Asia Economy Reporter Kiho Sung] As Hyundai Motor officially declares its entry into the used car sales industry, the National Assembly will hold a public hearing early next month to directly hear the opinions of stakeholders. This will be the first time the parties involved gather in one place amid the government’s shift from designating the used car sales industry as a 'livelihood-type suitable industry' to emphasizing coexistence, making the outcome highly anticipated.

According to political circles on the 22nd, the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee will hold a public hearing on December 7 regarding the designation of the used car sales industry as a livelihood-type suitable industry. Jo Jeong-hoon, a member of the committee from the Transition Korea party, explained, "The used car industry claims that the entry of large corporations into the used car market is a matter of life and death," adding, "This session was arranged at the committee level to accurately understand the current issues and listen to each party’s position."

The hearing will include officials from the Ministry of SMEs and Startups, the relevant government department, as well as witnesses such as Lim Ki-sang, representative of the Citizens’ Movement for Driving Cars for 10 Years, Kim Ju-hong, executive director of the Korea Automobile Manufacturers Association, Jung In-guk, CEO of K Car, and Lim Jae-kang, chairman of the Daejeon Jungbu Used Car Sales Business Association. The format will first involve hearing the statements of the witnesses collectively, followed by questions from the committee members and responses from the witnesses.

Currently, the government appears to be leaning toward coexistence rather than designating the used car sales industry as a livelihood-type suitable industry. Park Young-sun, Minister of SMEs and Startups, stated at the Industry Committee’s national audit on November 26, "The entire system needs to be changed," and warned, "If we do not change, the used car market may be shunned by consumers." The Win-Win Growth Committee, the primary body for livelihood-type industry designation, has also expressed an opinion that the used car sales industry is unsuitable for such designation.

Because of this, there is speculation that the government, which makes the final decision on the designation, may allow Hyundai’s market entry while seeking a coexistence plan with the existing used car sales industry to induce innovation in the used car sales market.

On the other hand, the used car industry is strongly opposing this. Choi Ki-woon, chairman of the Korea Used Car Sales Business Association Federation, emphasized at a meeting of the Democratic Party’s Euljiro Committee held at the National Assembly on the 17th, "Even if there are shortcomings in the used car industry, that cannot be a reason for large corporations to enter," adding, "If a monopoly occurs in the used car market, the ultimate victims will be the consumers, the people."

Therefore, it seems unlikely that a clear conclusion will be reached at this public hearing. A political insider said, "Because the differences in positions are so clear, it is difficult for the government to make an easy decision," and added, "We expect various opinions to be heard by the end of this year and a conclusion to be reached around next year."

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