Entry of Large Corporations into the Used Car Market... Interest in Ruling and Opposition Presidential Candidates' Positions

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[Asia Economy Reporter Kiho Sung] As the government has decided to determine whether to allow large corporations to enter the used car sales industry after the presidential election, the positions of presidential candidates on the entry of large corporations into the used car market are drawing attention. For now, Lee Jae-myung, the Democratic Party candidate, stated that the entry of large corporations into the used car market "would not be a complete solution," and Yoon Seok-youl, the People Power Party candidate, has also shown a cautious response.

According to political circles on the 1st, Lee posted on the automobile community 'Bobaedream' on the 29th of last month, saying, "I will correct the unfair and opaque trading order in the used car market where people have to worry about being scammed even though they are buying their own cars with their own money."

During his tenure as Governor of Gyeonggi Province, Lee analyzed big data to establish a monitoring system that filters out false used car listings, having detected 74 false listings. He stated, "Based on this experience in Gyeonggi Province, I will establish a thorough and continuous crackdown system on used car false listing sites that deceive consumers."

However, he showed a reserved stance regarding the market entry of large corporations. Lee said, "The entry of large corporations into the market will not be a complete solution," adding, "I believe that measures such as securing the reliability of used cars and sellers, guaranteeing used car performance, and establishing a fair trading order must be prepared first."

Candidate Yoon has not yet made a direct response on the matter. However, the automobile industry interprets that Yoon is showing a cautious stance as he has announced numerous pledges to revitalize both large and small businesses.

The reason presidential candidates' positions are attracting attention is that the decision on large corporations entering the used car market has been postponed until after the presidential election. The Ministry of SMEs and Startups held a review committee meeting on the livelihood-type suitable industry designation for used car sales on the 14th of last month but did not reach a conclusion immediately and decided to hold another meeting in March to make a decision.

Large corporations are accelerating their entry into the used car market. On the 20th of last month, Hyundai Glovis announced the launch of 'Autobel,' an integrated online used car trading platform connecting the domestic used car industry and consumers.

Along with this, Hyundai Motor Company and Kia recently applied for automobile sales business registration in Yongin City, Gyeonggi Province, and Jeongeup City, Jeonbuk Province, respectively. The industry views that Hyundai Motor Company and Kia may operate used car businesses in other regions such as the metropolitan area in the future.

The used car sales industry was designated as a suitable industry for small and medium enterprises in 2013, restricting large corporations' entry, but the designation expired in February 2019.

Afterward, the used car industry reapplied for livelihood-type suitable industry designation, but the Fair Trade Commission submitted an opinion in November of the same year citing non-compliance with some criteria. Consequently, the path for large corporations to enter the used car market was opened, but the decision has been continuously delayed due to the COVID-19 pandemic and political mediation.

The industry expects that once candidate Yoon presents specific pledges, the overall direction will become clear. A representative from a completed car manufacturer said, "Candidate Lee has opposed the entry of large corporations into the used car market even during his time as Governor of Gyeonggi Province," adding, "Since the situation is somewhat anticipated, the overall direction will be decided according to candidate Yoon's position."

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