Hyundai Motor and Kia "Postpone Used Car Market Entry... Regretful but Acceptable"

[Asia Economy Reporter Yoo Hyun-seok] Hyundai Motor Company and Kia announced on the 28th regarding the business adjustment results of the used car business by the Small and Medium Business Adjustment Committee, stating, "Considering consumers who desperately want changes in the used car market, the result is somewhat disappointing."

The Ministry of SMEs and Startups held the 'Small and Medium Business Adjustment Committee' on the same day to deliberate on the business adjustment application related to Hyundai and Kia's entry into the used car sales business and passed a business adjustment recommendation. According to the recommendation, the start date for Hyundai and Kia's used car sales business is postponed by one year to May next year. However, from January to April next year, pilot sales of certified used cars will be allowed within 5,000 units each.

Hyundai and Kia emphasized that the one-year postponement recommendation is the most regrettable part because consumers who expect reliable, high-quality used cars provided by the finished car industry and a transparent and objective trading environment were not sufficiently considered. However, from a magnanimous perspective, they plan to follow the recommendation and promote the used car business with the goals of ▲ enhancing the rights and interests of used car consumers, ▲ quantitative and qualitative development of the used car market, and ▲ coexistence with the existing used car industry.

Hyundai and Kia stated, "To this end, we will thoroughly prepare the business from now on, launch the pilot project in January next year, and officially supply Hyundai and Kia certified used cars to consumers starting in May next year to commence the business." They explained, "To foster coexistence and mutual development with the used car industry, we will set annual market share caps and enter the market step-by-step, and vehicles outside the certified used car category will be supplied to the used car sales industry."

They also plan to contribute to resolving information monopolies and enhancing transparency in the used car market by building an integrated used car information open system that collects, analyzes, and comprehensively provides used car-related information from various sources.

Meanwhile, Hyundai and Kia revealed their used car business directions last month and this month, respectively. They promised to expand consumer choice through the supply of high-quality certified used cars, improve the overall performance and quality level of used cars to increase consumer trust, and introduce innovative services from a mobility perspective for customers.