[Interview] "Valuing Memories" Old Car Platform Startup Yetcha

Hyundai Motor's In-house Startup 'Yetcha'
One-stop Service from Old Car Restoration to Valuation and Trading
Establishing Standards for Domestic Old Car Diagnosis and Restoration
Beta Service Launch in March, Spin-off Targeted for September

[Asia Economy Reporter Su-yeon Woo] "If you place just one Pony right in front of you, you could talk with any Korean. Because everyone has at least one memory related to the Pony. Our goal is to restore and evaluate the value of cars that have shared life moments beyond being mere means of transportation."

Hyundai Motor Company's in-house startup, Yetcha, is preparing a platform business for trading old cars. They provide both online and offline services including restoration, diagnosis, value assessment, and sales brokerage of old cars. Beta service will launch in March this year, with a spin-off planned for September. The domestic old car market is in its infancy. Yetcha was born from a mission to establish the old car market. Otherwise, they believe the domestic old car market could deteriorate like the current used car market, which suffers from severe information asymmetry.

Recently, Yetcha participated in a Galloper restoration project featured on a TV entertainment program. They took charge of setting the restoration direction, selecting parts, and verifying generational errors. Following Galloper, they are preparing another vehicle restoration project. On the 13th, we met with CEO Won Myung-won and team members Researcher Bae Seong-won and Manager Lee Yoo-shin at DreamPlus in Gangnam, Seoul.

Hyundai Motor's in-house startup Yetcha. (From left) Manager Lee Yushin, CEO Won Myungwon, Researcher Bae Seongwon
[Photo by Hyundai Motor]

- What sparked your initial interest in the old car business?

▲(Won) I have always been interested in art investment. Seeing rare artworks actively traded, I thought the classic car market also has potential. While overseas old car auction markets are thriving, I wondered why there isn't one in Korea. Hyundai and Kia started production in the 1970s, and heritage models have emerged, so I saw sufficient latent value.

- What specific business are you preparing?

▲ We plan to build both online and offline services simultaneously. We restore old cars upon request, assess their value, list them on our platform, and facilitate transactions. In January, we formed a consortium by bringing in maintenance and restoration experts. We plan to launch a community beta service in March and aim for a spin-off in September.

- So, is the platform you are building a value assessment platform?

▲ The old car market suffers from even more severe information imbalance than the used car market. There are more diagnostic areas than general used cars, such as how many original parts were used, whether the car is actually drivable, and its historical value. We will accumulate and standardize diagnostic data. Given the high volume of peer-to-peer transactions, we also plan to provide mechanisms to facilitate these transactions comfortably.

Old Car Participated in Hyundai Galloper Restoration Project
Photo by Hyundai Motor Company

- What role did you play in the recent Galloper restoration project?

▲(Bae) I was responsible for setting the overall direction of the project. We reviewed feasibility in terms of time and budget and decided on the optimal restoration plan. From finding the correct placement of parts on the car to generational verification, we handled it all. While examining parts, we decided which should be replaced with new ones and which should be preserved. Especially for interior materials, the client wanted to keep even the embossed leather as it was. So, we worked on details like whether to replace the leather entirely or just patch the damaged parts.

- Restoration sounds like a challenging task.

▲(Won) Restoration is not only technically demanding but also requires rigorous verification. There are almost no records for 1970s cars like the Hyundai Pony or Kia Brisa. We plan to gather all available internal documents and consult reliable external experts for verification. Our restoration is not just repair; it is about creating accurate standards for Hyundai and Kia heritage cars through verification.

- So, it’s like Hyundai’s concept of ‘certified old cars’?

▲ Yes, although small and medium restoration companies are emerging, the market is difficult to establish. Hyundai’s influence in the automotive aftermarket, which exceeds 20 trillion won, is significant. Someone with negotiation power must lead to solve issues like classic parts supply and various regulations. That’s why we, who love old cars and come from Hyundai, want to take responsibility and lead this effort.

Won Myung-won, CEO of Yetcha, an in-house startup at Hyundai Motor Company
Photo by Hyundai Motor Company

- Then, how is your revenue model structured?

▲ Upon receiving a request, we create standards through thorough verification and restore the car. Overseas, restoration agency fees are about 15%. We will secure revenue by restoring, pricing, and facilitating sales. We also plan to develop additional businesses such as merchandise sales to make domestic old cars a cultural asset.

- Have you faced any difficulties such as regulations during preparation?

▲(Lee) Due to environmental regulations, old diesel cars cannot enter inside the four major gates of Seoul. Even if they are exhibited in the city, they must be transported all at once on a carrier. Experience is important for cars, but cars that cannot be driven are just objects. Overseas, old car mileage operation systems limit driving periods and distances. If the market grows in Korea, the need for regulatory relaxation will also be discussed.

▲(Won) We see many cars with historical value being scrapped even at this moment. Due to environmental regulations, annual fuel efficiency inspections can result in fines. It is more profitable to scrap the car. Among them, there are many truly regrettable models. We hope regulations will be realistically adjusted as soon as possible.

- Lastly, what is Yetcha’s ultimate goal?

▲ We want Yetcha to no longer be treated as junk but to be fully recognized for its value. Also, we hope old cars will be regarded not just as items for enthusiasts but as wonderful cars that anyone can see, enjoy, and want to drive. We will keep moving forward until old cars become a new culture. The domestic cars that represented the era we grew up in will transform from mere vehicles into artworks and cultural assets.

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