Opening of used car market is delayed
The brakes have been temporarily slammed on large automakers entering the secondhand car market.
The Ministry of SMEs and Startups decided Thursday that large carmakers like Hyundai Motor and Kia will be allowed to sell used cars starting next May.
On March 17, the ministry announced that it was opening up the used car market, and not confining it to small and mid-sized companies anymore. It didn't set a specific date, but many expected it would be soon.
Although big companies will have to wait, the ministry will allow them to sell less than 5,000 high-quality and certified secondhand cars per month between next January and April. Certified secondhand cars have passed about 200 quality inspections.
Even after next May, there will be restrictions to keep them from driving off with the business altogether. Used cars will be limited to 2.9 percent of Hyundai Motors' total sales, the ministry said, and 2.1 percent for Kia in the first year. This will be increased to 4.1 and 2.9 percent in the second year.
The companies' purchases of secondhand cars will be restricted as well.
Hyundai Motor and Kia will only be able to buy secondhand cars from their own customers who are purchasing a new car from them.
Any violation of these guidelines will be penalized according to the Act on the Promotion of Mutually Beneficial Cooperation Between Large Enterprises and Small and Medium Enterprises.
“The ministry’s decision is disappointing considering how much consumers want a change in the secondhand car market,” Hyundai Motor said in a statement on Thursday. “Our business will begin next May according to the ministry’s decision.”
BY KANG KI-HEON [email@example.com]