It Used to Be a "National Certificate" for Resumes... Teens and Twenties Say "No" to Driver's Licenses

Demand Shifts from New to Used Cars Among People in Their Twenties
Number of Driving Schools Down 7% Year-on-Year

Unique methods emphasizing beginner driving for cars hitting the road for the first time after obtaining a driver's license. This is unrelated to the specific content of the article.

The number of young people obtaining driver's licenses is decreasing. While the development of transportation systems is cited as one reason, it is also interpreted that the cost of obtaining and maintaining a driver's license feels burdensome to young people who need to save every penny due to high inflation.

According to the National Police Agency on May 28, the number of newly issued driver's licenses to people in their teens and twenties in 2023 decreased by 20% and 30%, respectively, compared to 2020. As the tendency to avoid driving has grown, the number of driving schools nationwide has also declined. In the first quarter of this year, there were 342 registered driving schools, a 7% decrease from 367 in the first quarter of 2020.

This change is largely due to a shift in social attitudes. In the past, it was common for high school seniors to obtain a driver's license before entering university after finishing the college entrance exam. Recently, however, many do not obtain a license even after graduating and entering society. For young people who need to save every penny due to high inflation, the costs of obtaining and maintaining a driver's license have become issues directly tied to their daily lives and livelihoods.

The development of transportation systems is also a factor. Transportation card systems such as the Climate Companion Card and K-Pass have become established, and the opening of the Great Train Express (GTX) has reduced the necessity for using a personal vehicle.

The mindset regarding car purchases has also shifted from new cars to used cars. According to the "2024 Domestic Market Analysis Report" by the Korea Automobile Mobility Industry Association (KAMA), new car purchases by people in their twenties last year declined by 12% compared to the previous year, marking the highest rate of decrease among all age groups.

On the other hand, the market share of used cars last year remained steady compared to 2018. This contrasts with the 5.6 percentage point decrease in market share among people in their thirties and forties. Considering that the population of people in their twenties also declined during the same period, the preference for used cars among this age group has actually increased.