Summary

The main factors driving the growth of the used car market in South Korea are the rising preference among consumers to use private transportation due to increases in GDP per capita and personal disposable income, the development of online technologies, and rising new car prices. In order to improve their convenience and personal mobility, customers are increasingly choosing private transportation options as their financial stability increases. The soaring cost of new cars, however, discourages some of these buyers from investing in brand-new cars, which in turn fuels the market for used cars in South Korea. The existence of several unorganized dealers who offer cheaper pricing than their competitors, creating a highly fragmented and competitive market, is one of the main issues facing the used car market in South Korea. In addition, the South Korean government for a considerable amount of time prohibited large corporations from selling used cars, citing the necessity to safeguard smaller used car sellers. With certain restrictions, such a cap on market share, the Ministry of SMEs and Startups launched an initiative to let these companies integrate into the market. In addition, falling used automobile prices are a significant barrier to the South Korean used car market. Throughout the projected period, South Korea's market for used automobiles will benefit from the government's strong plan to encourage the electrification of vehicle fleets and the prohibition of gasoline and diesel vehicles in an effort to reduce carbon emissions. For the convenience of mobility, consumers who are ready to spend less on alternatives to new-energy vehicles are increasingly choosing to buy old cars. For example, the South Korean government reiterated in March 2022 that it intended to phase out the sale of new internal combustion engine (ICE) automobiles by 2035. Furthermore, the government declared in September 2022 that starting in 2025; Grade 4 diesel cars the second-lowest in the nation's five-tier pollution standard would no longer be allowed in Seoul's downtown neighborhoods. Hyundai Motor Co., the leading carmaker in South Korea, is joining the nation's used automobile market, which has traditionally barred large corporations from entering in order to safeguard smaller used car dealers. The two biggest automakers in Korea, Hyundai and KIA Corp., are owned by the Hyundai Motor Group.

According to the research report "South Korea Used Car product Market Overview, 2029," published by Bonafide Research, the South Korea Used Car Market is expected to grow with more than 7% CAGR from 2024 to 2029. The demand for used automobiles sold through online platforms is being driven up by the increasing number of tech-savvy young people who are adopting modern technology, the rise of e-commerce marketplaces, and the aggressive techniques employed by various corporations to spend on online marketing. These systems help customers make educated decisions by providing end-to-end vehicle information, including make, model, mileage, engine capacity, condition, and more. Furthermore, rising rates of Internet penetration and the country's rapid urbanization all help to create a productive ecosystem in which car owners can connect with buyers from various regions and start a seamless online sales process without having to physically visit a location. Since South Korea has a high per capita income, more people are thinking about getting a car. When it comes to entrance points, used cars are more economical than new ones. Public transit isn't always dependable or effective in some places, which encourages people to drive their own cars. For many people, used cars are an affordable choice. The global shortage of chips has hindered the production of new cars, increasing the availability of secondhand cars.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric. Conventional segment is leading one. In fact, the used automobile market in South Korea is seeing a notable uptick in the electric vehicle (EV) segment. One significant catalyst is the government of South Korea's ambitious goal to outlaw the sale of new internal combustion engine (ICE) automobiles by 2035. This encourages buyers to choose electric vehicles (EVs), even used ones, in order to abide by the impending restrictions. Both new and used EV purchases are eligible for significant government subsidies, which lowers their cost and increases their appeal. Because of South Korea's growing concern over climate change and air pollution, electric vehicles (EVs) are a more environmentally friendly option. At a reduced cost, used EVs provide an affordable option to experience the advantages of electric transportation.

Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others. In the used car market in South Korea, the SUV and MUV segments are, in fact, becoming more and more popular. SUVs and MUVs are popular with growing families, outdoor enthusiasts, and people who need cars for work or business since they have a large passenger and cargo capacity. Customers can choose the ideal vehicle for their unique requirements and tastes from a broad variety of sizes and styles available in this segment, which includes anything from small crossovers to full-size SUVs and MUVs.

Based on Fuel Type market is divided into Petrol, Diesel, Others. When compared to their diesel counterparts, gasoline-powered vehicles frequently have higher fuel efficiency. Customers may favor gasoline-powered cars due to their economical fuel usage in areas where fuel prices are a major concern. Modifications to emission regulations and standards may have an impact on customer choices. Because diesel vehicles emit more of some pollutants than other types of vehicles, several regions have tight rules regarding them. Customers may find petrol cars more enticing as a result. Its common knowledge that diesel engines require more maintenance than petrol ones. This may be impacting buyer preferences, particularly in the used automobile market where the maintenance history is important.

Based on Size market is divided into Mid-Size, Compact, SUVs. In the South Korean used car market, SUVs are clearly becoming more and more popular than other vehicle sizes like sedans and hatchbacks. The demand for SUVs that can handle a variety of terrains and fit recreational equipment is being driven by the rising popularity of outdoor sports and leisure trips in South Korea. This is consistent with Koreans placing a greater focus on outdoor activities and healthy lifestyles. The rise of the class is aided by the Korean government's emphasis on boosting native automakers, such as Hyundai and Kia, which have robust SUV lineups.

Based on Vendor Type market is divided into Organized, Unorganized. In the South Korean used automobile industry, the organized segment which consists of approved dealerships and multi-brand used car platforms is, in fact, seeing notable expansion. Financing choices are more frequently available at organized dealerships, which help consumers afford used cars. Customers who do not have the funds to buy an automobile entirely may find this to be very alluring. Organized platforms, which foster confidence and offer piece of mind provide comprehensive inspections, vehicle history records, and warranties in contrast to more casual individual seller-buyer interactions.

Based on By Distribution Channel market is divided into Offline, Online. Instant availability is a benefit of offline dealerships. Consumers can visit a dealership, go at the available vehicles, and even leave with a purchase the same day. This can be a crucial element for purchasers seeking a simple and speedy transaction. Trade-ins and in-person negotiations are made easier by the offline section. In-person negotiations over pricing and trade-ins, which can be crucial steps in the used car purchasing process, may make buyers feel more at ease.

Considered in this report:
• Geography: South Korea
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• South Korea Used Car market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type:
• Conventional
• Hybrid
• Electric

By Body Type:
• Hatchbacks
• Sedan
• SUV & MUV
• Others

By Fuel Type:
• Petrol
• Diesel
• Others

By Size:
• Mid-Size
• Compact
• SUVs

By Vendor Type:
• Organised
• Unorganised

By Distribution Channel:
• Offline
• Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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