[Asia Economy Reporter Lee Jung-yoon] While the government has yet to decide whether to allow large automakers to enter the used car market, Hyundai Motor Company and Kia Motors have begun preparations for their used car sales business.
According to industry sources on the 20th, Hyundai and Kia recently applied for automobile sales business registration in Yongin City, Gyeonggi Province, and Jeongeup City, Jeollabuk-do, respectively. To engage in automobile sales, businesses must register with local governments, and according to the automobile sales business registration standards, they must have exhibition facilities with a total floor area of at least 660㎡.
Since the sites Hyundai and Kia own in Yongin and Jeongeup meet these registration criteria, it appears they have first applied for business registration with the respective local governments. Furthermore, Hyundai and Kia may operate used car showrooms in other regions such as the metropolitan area in the future by utilizing existing sites or purchasing new land.
Amid ongoing conflicts between the used car sales industry and automakers, the Ministry of SMEs and Startups, the government department in charge, has not yet decided whether to allow large automakers to enter the used car market. The ministry is expected to reach a conclusion by holding a review committee meeting on livelihood-type suitable industries for used car sales in March.
Used car sales were designated as a livelihood-type suitable industry in 2013, restricting large corporations' entry, but this designation expired in February 2019. Subsequently, used car companies reapplied for the livelihood-type suitable industry designation, but the Fair Trade Commission did not recommend it as such in November of the same year. As a result, the door opened for large corporations to enter the used car market, but decisions have been delayed due to the COVID-19 pandemic and political mediation.
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