Confused Policies... Conclusion on Large Used Car Companies' Market Entry Likely to Be Delayed Past Year-End

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] There have been repeated struggles over the entry of large corporations into the used car market. While the completed car industry emphasizes consumer benefits and protection, the opposing side strongly opposes it, arguing that it goes against coexistence. Moreover, since the opinions of both sides are not easily reconciled and the relevant government department is passive, it seems that no solution has been found.

According to the industry on the 13th, the completed car industry is known to have drafted a coexistence plan that only deals with used cars that are 'within 6 years old and 120,000 km mileage' and sets an upper limit on market share. Along with this, the condition of not exceeding a 10% market share is also being discussed.

However, the used car industry clearly opposes these conditions. On the 7th, a public hearing related to the entry of large corporations into the used car market was held at the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee.

At the hearing, the used car industry expressed a critical stance on the coexistence plan that limits listings to 'within 6 years old and 120,000 km mileage.' Im Jaekang, chairman of the Daejeon Jungbu Automobile Sales Business Association, pointed out that Hyundai Motor guarantees '5 years or 100,000 km' when purchasing a new car, saying, “Ultimately, the used car industry will only handle cars that have been in accidents or have high mileage, which will increase consumer distrust,” and added, “If you really think about consumer welfare, Hyundai Motor should guarantee vehicles older than that and verify durability, etc.”

This was the first official meeting between the two sides since the initial controversy during the recent national audit, but it only confirmed their differences.

On the other hand, the Ministry of SMEs and Startups, which should mediate, is only repeating stagnation. It should make the final decision on the entry of large corporations into the used car market, but it has already delayed the decision for more than seven months. For this reason, there are concerns that this situation may be prolonged.

Earlier, on November 6 last year, the Win-Win Growth Committee submitted an opinion to the Ministry of SMEs and Startups stating that the used car sales industry does not qualify as a livelihood-type suitable industry. The Ministry of SMEs and Startups is supposed to designate and announce within three months from the day it receives the committee’s position, extendable up to six months, but even after a year, it has not held a review committee.

An industry insider said, “No matter what coexistence plan comes out, it is difficult for both sides to easily accept it,” and pointed out, “It is the Ministry of SMEs and Startups that should take the lead and quickly make any conclusion to reduce the repeated emotional exhaustion of both sides.”

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