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Gov't to lift restrictions on big corporations' used-car market shares

Published: 27 Apr. 2025, 16:41

Hyundai Motor Certified Used-Car Refurbishment Center in Yangsan, South Gyeongsang [YONHAP]

The government will lift restrictions on the used-car market share of large corporations starting next month, opening the door to a significant realignment in the industry.

The move eliminates the caps set in 2023 when the government approved Hyundai Motor and Kia’s entry into the used-car business. Under those rules, Hyundai Motor had been limited to a 4.1 percent market share and Kia to 2.9 percent.

Hyundai Motor and Kia, along with rental car companies and imported car dealerships, are preparing to expand into the used-car market, signaling a new wave of competition in the local market.

Industry officials expect more active trading as Hyundai Motor and Kia expand operations and rental car firms such as Lotte Rental aggressively enter the market.

Used-car transactions in the first quarter of this year totaled 580,859 units, a 4.3 percent decline compared to the same period last year, according to Carisyou Data Research Institute.

Hyundai Motor Group is already operating a certified pre-owned car business, purchasing its own vehicles that are less than five years old and have under 100,000 kilometers (62,137 miles) of mileage.

With the market share limits set to expire, Hyundai is expected to significantly increase its inventory across a broader range of models.

Kia, meanwhile, added “real estate development” to its business objectives during a shareholders' meeting.

Analysts interpret the move as part of Kia’s plan to expand investment in its certified used-car business and develop extensive infrastructure such as sales complexes and service centers.

"The company’s business objectives are to develop new business sites such as integrated flagship stores for vehicle purchases, maintenance, service and brand experiences, and to operate some rental buildings," Kia President Song Ho-sung said.

Hyundai Glovis, Hyundai Motor Group’s logistics affiliate, is also stepping up its efforts in the used-car sector.

Hyundai Glovis recently partnered with car-sharing platform Socar to expand its used-car purchasing service nationwide through its platform Autobell. Using Socar’s vehicle transport platform Handler, Hyundai Glovis plans to extend its buying service to small cities and remote regions with lower population densities.

A Hyundai Motor certified used-car specialist conducts a quality inspection in Gunsan, North Jeolla, on Aug. 5, 2024. [YONHAP]

Rental car companies are following suit. Lotte Rental and SK Rent-a-Car are preparing to move beyond new car distribution into used-car sales.

Lotte Rental opened a used-car sales complex in Bucheon, Gyeonggi, to handle 20,000 used cars annually starting next year and recently opened sales centers in Gangseo District, western Seoul, and Bucheon, Gyeonggi, with plans to add more centers in the Seoul metropolitan area.

SK Rent-a-Car will open its first used-car auction house for dealers this July in Cheonan, South Chungcheong.

The imported car sector also sees opportunity in the growing used-car market.

Used cars are parked at the Janghanpyeong Used Car Dealership in eastern Seoul on Aug. 7, 2022. [NEWS1]

Kolon Mobility Group plans to launch online sales of used BMW, Volvo and Audi vehicles in the third quarter. Chinese electric vehicle maker BYD is also preparing to sell new and used cars across its major domestic locations. The company established a separate sales entity, BYD Korea Auto, and added used-car import and distribution to its business activities to support its plan.

"Recent surveys show that seven out of ten consumers now prefer used cars over new ones, emphasizing value for money," a used-car industry representative said. "If Hyundai Motor and Kia increase supply, the used-car market will likely regain momentum."

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [[email protected]]