80% of experts are positive! Korean automakers will enter the used car market

The South Korean civic group "Citizens' Conference on Consumer Autonomy" announced on the 21st that it commissioned the polling organization Hangil Research to conduct a questionnaire survey on 254 professors of business, economics, law, consumer science, and automotive sciences at universities across the country .

According to the survey results, when car manufacturers were asked for their opinions on entering the used car market, 79.9% of them answered "positively", while 10.2% answered " normal " and 9.5% answered "negative".

The Korean Consumer Rights Citizens Conference responded to the same question with 56.1% answering "yes" and 16.3% answering "no", indicating that experts have more positive opinions than consumers.

71.4% of the experts responded that they believed the entry of large companies was positive and that they believed it would make the used car market transparent and advanced. 56.7% of the respondents answered that it would expand consumers' choices over various goods and services.

In addition, when asked about the market improvement effect of designating the used car sales business as suitable for SMEs, 56.3% of the experts replied that it had a negative impact. 20.8% of the respondents said that they played a positive role.

It is reported that after the used car trading industry was designated as a suitable industry for small and medium-sized enterprises in 2013, its entry into the finished car industry was restricted. However, with the end of the designated period in February 2019, Korean finished car companies such as Hyundai Motor and Kia have been expressing their intention to enter the used car industry.

It is reported that the sales volume of the used car sales industry soared from 7.9669 trillion won in 2016 to 12.4217 trillion won in 2018, and the number of used car trading companies increased from 5,829 in 2016 to 6,361 in 2018.

The Citizens' Conference on Consumer Rights said , "The used car market has long been considered a representative example of a 'lemon market' due to information asymmetry between sellers and consumers . Consumer trust has been declining due to false information and bait."

In addition, he stressed that open platforms should be clearly disclosed to allow domestic automakers to sell certified used cars, and the quality, evaluation and price calculation standards of used cars purchased by these companies should be clearly disclosed.

Additionally, the Ministry of SMEs and Entrepreneurship urged that a conclusion be reached in the near future on the issue of automakers entering the used car market.

South Korea

Used Cars

consumer