"Used Car Exports Reach 400,000 Units Annually... Export System Remains Backward"

Automotive Industry Development Forum Held
Poor Environment Including Inadequate Evaluation System
Used Car Export Complex Establishment Most Urgent

(Photo by Asia Economy)

[Asia Economy Reporter Kiho Sung] Although South Korea's annual used car exports, reaching 300,000 to 400,000 units, have the potential to grow into a 1 trillion won market, there are criticisms that the export system is backward and small-scale. To overcome this, urgent institutional improvements such as establishing a used car export business platform are needed.

The Korea Automobile Manufacturers Association (KAMA) and the Korea Export Used Car Association (KEUCA) jointly held the 30th Automotive Industry Development Forum on the 4th under the theme "Measures to Secure Competitiveness in Used Car Exports."

Kim Pil-su, chairman of KEUCA, who presented on the topic "Current Status and Challenges of South Korea's Used Car Exports," stated, "Domestic used car exports reach 300,000 to 400,000 units annually, contributing to the export of used parts and job creation," but also evaluated that "the export system is backward and small-scale."

He added, "Currently, over 90% of exports are mainly conducted through Incheon, and Gunsan Port has been designated as a pilot used car export complex," but noted, "Due to poor business environments such as inadequate used car evaluation systems, used car prices remain at less than half compared to Japan, making improvements urgent."

As measures to advance used car exports, proposals included ▲establishing a used car export business platform ▲building an advanced modernization complex ▲developing diagnostic evaluation systems such as software ▲creating expert training programs ▲forming used car export management organizations ▲and improving the purchase structure linked with the domestic used car market.

Chairman Kim emphasized, "It is essential to have modernized hardware such as one-stop systems including training diagnostic evaluators, operating and supporting export expert training programs, and university programs linked with automobile brokerage certifications, but the software that operates these is even more important."

He also stated, "Considering future scalability, ways to utilize used electric vehicles must be considered," and "Various challenges such as used electric vehicle diagnostic evaluation models and price estimation models need to be addressed."

In the subsequent discussion, Professor Kim Kwang-seok of Incheon National University’s Department of Global Logistics diagnosed, "Among the nationwide used car export volume of 385,000 units, about 90% (346,000 units) are exported through Incheon Port, where export conditions are very poor," adding, "Dealers operate in an environment comparable to that of developing countries."

Professor Kim also conveyed, "The Incheon Port Authority plans to promote the Smart Auto Valley project to relocate the Songdo Amusement Park used car export complex and create advanced used car industry and export conditions in Incheon."

Voices calling for improvements were also strong on site. Song Young-seung, CEO of Carbay, said, "Used car export companies are making efforts such as developing export platforms, improving unreasonable export structures, pioneering sales channels, and enhancing quality," but lamented, "Difficulties are increasing due to limited experience with platforms, rapid market environment changes, and COVID-19."

Lim Seong-cheol, secretary general of KEUCA, suggested, "The used car export industry faces numerous issues such as insufficient parking lots, shipment delays due to lack of shipping space, and logistics costs, but above all, establishing a used car export complex is the most urgent."

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