Automobile Industry Association Urges Immediate Convening of Deliberation Committee on Used Cars as Livelihood-Suitable Industry

Judged Unsuitable as a Livelihood-Type Appropriate Industry for 3 Years... Legal Deadline Exceeded by 1 Year and 7 Months

[Asia Economy Reporter Yu Je-hoon] The Korea Automobile Industry Association (KAIA) announced on the 9th that it submitted a petition to the Ministry of SMEs and Startups on the 8th, requesting the prompt convening of a review committee for the designation of used car sales as a livelihood-type suitable industry. KAIA is a coalition of nine organizations related to the automobile industry, including the Korea Automobile Manufacturers Association (KAMA).

Previously, since the Win-Win Growth Committee ruled in 2019 that the used car sales industry was 'unsuitable' as a livelihood-type suitable industry for small business owners, the used car industry and the completed car industry attempted to sign a win-win agreement centered on the Democratic Party's Euljiro Committee's Used Car Industry Development Committee for three months starting in June, but it ended in vain. The Ministry of SMEs and Startups then held a three-day consultation at the end of last month with KAMA, Hyundai Motor Company, the Korea Automobile Dealers Association Federation, and the National Automobile Dealers Association Federation, but the negotiations ultimately broke down.

KAIA stated, "The review on whether to designate used car sales as a livelihood-type suitable industry is approaching three years since the application date in 2019, and more than one year and seven months have already passed since the legal deadline," adding, "Efforts were made for three months to reach a win-win agreement centered on the Democratic Party's Euljiro Committee, but negotiations broke down. The completed car industry attended the used car-related cooperation meeting convened again by the Ministry of SMEs and Startups and proposed negotiation plans, but the used car organizations still maintained their existing positions, causing the negotiations to fail."

KAIA emphasized, "The breakdown of negotiations fundamentally stems from a significant difference in perception between the two sides on the issue, and it is not a problem that can be resolved between the parties involved," and added, "It is now time for an objective and fair third party, a livelihood-type suitable industry review committee composed of private experts, to determine whether used car sales should be designated as a livelihood-type suitable industry."

Furthermore, KAIA urged the Ministry of SMEs and Startups, "Considering the recent statement by the Minister of SMEs and Startups to conclude the matter within this year, consumer groups' demand for opening the used car market within this year, and the time needed for a fair and objective review, please convene the review committee immediately."