Automobile Industry Association "Used Car Win-Win Cooperation Committee Launch Failed, Very Regrettable"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] The Korea Automobile Manufacturers Association (KAMA) expressed regret over the cancellation of the 'Used Car Win-Win Cooperation Committee' launch ceremony, which was scheduled to be held on the 17th at the Democratic Party leader's conference room. The Used Car Win-Win Cooperation Committee was promoted with the intention of creating a win-win plan for the industry ahead of the entry of finished car manufacturers into the used car market.

Originally, the launch ceremony was expected to be attended by Minister of Land, Infrastructure and Transport Byeon Chang-heum, Minister of SMEs and Startups Kwon Chil-seung, representatives from KAMA, the Korea Imported Automobile Association, the Korea Automobile Dealers Association Federation, and the National Automobile Dealers Association Federation, but it was canceled due to the absence of used car trading organizations.

KAMA pointed out, "According to the Livelihood-Type Suitable Industry Act, a decision on whether to designate a livelihood-type suitable industry must be made within a maximum of 15 months from the application date to the date of review and resolution. In the case of the used car sales industry, more than two years have passed since the application date in February 2019, but no review has even been conducted yet."

According to KAMA, if finished car manufacturers participate in the used car trading market and provide systematic vehicle condition inspections, repairs, certification, and warranties for purchased vehicles, and if the certification system generally spreads to existing used car dealers, the size of the used car market is expected to expand more than twice compared to the current scale. This is because consumers will be able to purchase used cars with confidence, leading to higher consumer satisfaction. Therefore, if finished car manufacturers enter the market, the market size will expand, and the number of used cars traded by existing used car dealers will actually increase. In fact, in the United States, where finished car manufacturers freely participate in the used car market, the used car market size is 2.4 times that of new cars, and in Germany, it is twice as large, but in Korea, it is only about 1.2 times.

Jung Man-ki, Chairman of KAMA, said, "It is very regrettable that the launch of the Used Car Win-Win Cooperation Committee was canceled due to the absence of used car dealer organizations, considering the benefits that could have been returned to finished car manufacturers, existing used car dealers, and consumers through the implementation of the win-win cooperation plan." He added, "Even if the Used Car Win-Win Cooperation Committee is not launched, this organization is an advisory body, and considering that the statutory review period for designating used cars as a livelihood-type suitable industry has already passed by more than nine months, we hope the government will promptly hold a review committee meeting and reach a conclusion."

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