"Hyundai·Kia Not an Alternative in Used Car Market"…SME Industry Relay Rally (Comprehensive)

Protest in front of the Transition Committee Office
"False listings are acts of criminal groups"
"Must resolve through system improvement and crackdown"

The Korea Automobile Dealers Association held a rally on the 24th near the National Palace Museum in Jongno-gu, Seoul, opposing the entry of large corporations into the used car market. Photo by Moon Honam munonam@

"The entry of large corporations into the used car market is equivalent to a death sentence for dealers."

The small and medium-sized used car industry is now actively taking collective action to block the entry of large corporations such as Hyundai Motor and Kia into the used car market.

The Korea Automobile Dealers Association Federation (KADA Federation) held a protest rally in front of the Presidential Transition Committee office in Tongin-dong, Seoul, on the 28th, following rallies on the 24th and 25th. In accordance with COVID-19 quarantine regulations, only up to 299 out of approximately 40,000 dealers affiliated with KADA Federation are allowed to attend.

They condemned the Ministry of SMEs and Startups' decision not to designate the used car industry as a livelihood-suitable sector and criticized the entry of large corporations into the used car market as an act that destroys the automobile sales ecosystem. They also mentioned plans to take drastic measures such as returning automobile management business registration certificates and boycotting Hyundai Glovis used car auctions.

Im Young-bin, president of the KADA Federation, stated, "The Ministry of SMEs and Startups' decision not to designate the livelihood-suitable sector ignores the characteristics of the used car industry and reflects a retrogressive judgment due to a lack of understanding of the automobile sales business," adding, "It is tantamount to allowing Hyundai Kia's monopoly."

They pointed out that thanks to continuous efforts by the government and the industry, consumer damages have decreased and the used car market has improved. In 2013, the vehicle history information service (Car365) was introduced, and in 2014, the real-name system for used car transactions was implemented. According to the Korea Consumer Agency's annual used car consumer consultation data, the number of consultations decreased from 12,875 in 2014 to 9,096 in 2018, and further down to 4,662 last year.

They argued, "It is questionable how large automobile manufacturers, who cannot even properly protect new car consumers, can protect consumers in the used car market," and insisted, "Strong penalties for illegal activities and system improvements are needed, and the entry of Hyundai and Kia into the used car market cannot be the solution."

The Korea Automobile Dealers Association held a rally on the 24th near the National Palace Museum in Jongno-gu, Seoul, opposing the entry of large corporations into the used car market. Photo by Moon Honam munonam@

They judged that online exaggerated advertising practices such as false or bait listings are not problems of the used car market but acts of criminal groups. They said, "Most serious illegal acts reported in the media are not internal problems of the used car market but actions by external criminal groups, such as voice phishing organizations formed for criminal purposes," emphasizing, "These issues should be resolved through system improvements and crackdowns by national law enforcement."

They foresee that if large corporations like Hyundai and Kia enter the used car market, monopolization and market structure distortion by large corporations will be inevitable. They explained, "If promotions such as trade-in offers are provided, most customers will have no choice but to sell their used cars to the original equipment manufacturers," adding, "If a monopoly is formed in the used car purchasing market, they will be able to control prices and quantities."

They continued, "While market share in the sales market is important, the core of the used car market is the purchasing market," and added, "They intend to monopolize the used car market just like the new car market."

They also stated, "The laws and systems that are insufficient to regulate large automobile manufacturers fail to properly protect consumers and the market," and emphasized, "To modernize the used car market, effective policies and system improvements supported strongly by the government and the National Assembly are necessary."

A KADA Federation official lamented, "It is obvious that large corporations will dominate with capital and superior status rather than coexistence and cooperation," and said, "This news pours cold water on the atmosphere of progress through self-purification efforts within the industry."

Another used car industry group, the National Automobile Dealers Association Federation, will hold an emergency press conference tomorrow (29th) at the Korea Federation of SMEs in Yeouido, Seoul, opposing the entry of the original equipment manufacturers into the used car sales business.

Earlier, on the 17th, the Livelihood-Suitable Sector Deliberation Committee decided not to designate the used car sales business as a livelihood-suitable sector. The committee judged that the proportion of small business owners in the used car sales business is low and that it does not meet the criteria for small-scale business.

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