[Exclusive] Used Car Sales Industry Classified as Non-Suitable for Livelihood-Type Business... Official Entry of Large Corporations Confirmed

[Asia Economy Sejong=Reporter Kim Hyewon] Large corporations such as Hyundai Motor and Kia are now allowed to enter the used car market. This follows the government’s decision to classify the used car sales industry as 'undesignated' in the livelihood-suitable industry review. However, a 'conditional' recommendation encouraging win-win cooperation was attached.

According to related ministries on the 17th, the Ministry of SMEs and Startups decided not to designate the used car sales industry as a livelihood-suitable industry after lengthy discussions at a closed-door review committee meeting held from 10 a.m. that day.

This comes more than three years after the used car industry applied to the Ministry of SMEs and Startups in February 2019 to have the livelihood-suitable industry status reinstated to block large corporations from entering the market.

The used car sales industry was designated as a livelihood-suitable industry restricting large corporations’ entry in 2013. When the protection period expired in February 2019, the used car industry requested the Ministry of SMEs and Startups to re-designate it within the same year. Initially, the ministry planned to conclude the decision by May 2020 but postponed it, considering the policy direction of the next government. After about two years, a review committee was held in January this year but still failed to reach a conclusion.

Meanwhile, the completed car industry has finished preparations to enter the market. Hyundai Motor has formalized its entry into the used car market by presenting a concrete business plan. Kia has applied to register its used car business in Jeongeup-si, Jeonbuk. It is also known that the three mid-sized companies?Korea GM, Renault Samsung, and Ssangyong Motor?are internally preparing to enter the used car market.

However, the review committee reportedly attached a conditional recommendation urging the completed car manufacturers to adhere to the win-win cooperation measures developed during negotiations with the Euljiro Committee and others.

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