Ministry of SMEs and Startups Halts Hyundai Motor's Entry into Used Car Market... Recommends Temporary Suspension of Business

Used Car Industry Business Adjustment Application... Ministry of SMEs and Startups to Reconsider in March

[Image source=Yonhap News]

[Asia Economy Reporter Kim Heeyoon] The government has put the brakes on Hyundai Motor's entry into the used car business. This move is seen as a prelude to deciding whether to open the market after reviewing the business adjustment system requested by the used car industry.

On the 17th, the Ministry of SMEs and Startups announced that it recently recommended Hyundai Motor to temporarily suspend the start of its used car business.

The used car industry (Korea Automobile Dealers Association Federation, National Automobile Dealers Association Federation) recently applied to the Korea Federation of SMEs for business adjustment regarding Hyundai Motor and Kia's used car sales.

Business adjustment is a dispute resolution system implemented by the Ministry of SMEs and Startups to protect the business areas of small and medium-sized merchants and preserve neighborhood commercial districts from indiscriminate business entry and expansion by large corporations. The government can recommend postponing or reducing business acquisition, commencement, or expansion for a certain period.

The Ministry of SMEs and Startups, after receiving the business adjustment application through the Korea Federation of SMEs, recommended that Hyundai Motor refrain from unilaterally starting business activities such as purchasing and selling used cars until related matters are discussed.

Earlier, on the 14th, the Ministry held a committee meeting to review the designation of the used car sales industry as a livelihood-suitable industry but failed to reach a conclusion. The designation of the used car sales industry as a livelihood-suitable industry will be decided after March.

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