Car Sales Association "Fight for Survival"... Used Car Sales Industry Designated as 'Suitable for Livelihood Type Industry'

Domestic Complete Vehicles
Ministry of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The Korea Federation of Auto Dealers Associations announced on the 8th that if the used car sales business is excluded from the livelihood-type suitable business category, 300,000 members and their families nationwide will engage in an indefinite struggle to protect their right to live.

This announcement of the federation's struggle is related to the Small Business Livelihood-Type Suitable Business Deliberation Committee meeting on the used car sales business. The federation also criticized domestic completed car manufacturers, who had previously shown an attitude of not entering the used car market, for attempting to enter the used car market.

A federation official stated, "We will mobilize all available capabilities to strongly fight to block the entry of completed car manufacturers into the market and to protect our right to live," adding, "If the used car sales business is excluded from the livelihood-type suitable business category, we will take to the streets and engage in an indefinite struggle in solidarity with civic groups until the completed car manufacturers withdraw from the used car market."

According to the Special Act on the Designation of Livelihood-Type Suitable Businesses, the Minister of SMEs and Startups must designate and announce the livelihood-type suitable business within three months (with a possible extension of three months) from the day the Win-Win Growth Committee recommends the designation, based on the deliberation and resolution of the deliberation committee. However, the federation explained that even after about one year and five months, the process is still stalled at the Ministry of SMEs and Startups' deliberation stage.

A federation official said, "Due to the impact of COVID-19, the used car market is in a very serious situation, and considering this, the entry of completed car manufacturers into the used car market will inevitably collapse the current used car market, which is centered on small business owners," adding, "This will inevitably lead to a large-scale unemployment crisis, which goes against the government's core policy of job creation."

In response, a representative from the Korea Automobile Manufacturers Association said, "The participation of completed car manufacturers in the used car market will lead to win-win growth by expanding the overall market size and industrial scope through the convergence with 4th Industrial Revolution technologies and the creation of new jobs, increasing added value, and providing more business opportunities to existing operators."