South Korea Used Car Market Outlook To 2026

• Online Classified are analysing the patterns of purchase by customers and capturing it through fintech and other tools such as digital marketing, enabling them to provide tailor-made solutions for customer. AI and ML are being used to transform the car buying experience for customers.
• The Dealers in the used car market are scattered and small scale. The primary reason behind this was the law introduced by the Korean Government in 2013 which has been revoked in 2019. Since 2022, domestic new Car players such as Kia and Hyundai are expected to enter the market and provide quality vehicles certified by them.
• Local cars, such as those from Hyundai and Kia, have become pricier, which lowered the entry bar and created room for imported cars to join the market. This will propel growth of the organized used car sector as the sales occurring through the certified pre-owned car dealerships in the country will increase.

Growing demand for Authorized Used Cars Outlets in the Market: Consumers are either by a dealer or they try to directly purchase a used car from an owner to avoid. The situation is serious for consumers in terms of both intangible and tangible damages they can suffer. This has led foreign carmakers to actively run secondhand car businesses in South Korea with their own brand authentication systems, to instill trust in drivers buying their used models.

Increasing Used Car Sales due to Covid-19: The pandemic made owning a car an unavoidable aspect of an individual's life as travelling via public transport can be risky. People who preferred public transport during the pre-Covid times are now the potential customers of the used cars market. Subsequently, the pandemic does not seem to completely subside soon, the demand for used cars will keep increasing. Since most of these people who could not afford a car in the first place would prefer the most optimal solution available, that is, purchasing a pre-owned car.

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Growing popularity of Digital Showrooms: The online space in the used cars market has been gaining traction over time on account of Covid-19 protocols that forced several dealers to introduce virtual showrooms. These digital platforms help facilitate minimum in-person contact during the process of selling a car by providing 360 degree view of the interiors of the car to enhance digital experience of consumers. Use of advanced technologies such as AI is helps to valuate car online by providing pictures.

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Improved Focus on Value-Added Services: Since there are a higher proportion of organized players in the used cars segment, more dealers have shifted their focus on providing value-added services to survive the increasing competition. It has been observed that many of the multi-brand dealers too have started providing additional services such as extended warranty, insurance, after sales services, assistance in paperwork, etc., to become a 'one-stop' destination for used car buyers.

Organized Segment's Share to Rise: Organized dealers which include authorized or multi brand dealerships with higher inventory or more number of physical outlets in South Korea, contribute to the majority of the market share. The share of organized dealers is expected to further rise in the future as big domestic players are anticipated to enter the market. Moreover, buying used cars from organized players comes with the added advantage of availing maximum value added services. Especially for Medium valued to Premium used cars, it is seen that customers are more concerned about the after sales services and warranties that are provided for the vehicle.

Analysts at Ken Research in their latest publication "South Korea Used Car Market Outlook To 2026: Relaxed Government Regulations on Big Companies Entering Used Car Market to Facilitate Increase in the Used Cars Sales and Improve the Organized Market Share" observed that South Korea is in a growth phase in the used car market in South East Asia and is gradually recovering from the economic crisis after the pandemic. The increasing E-Commerce penetration is giving a boost to this industry. Going forward, the industry is expected to demonstrate further growth in the short-medium term fueled by the growth of online used car platforms that provide convenience to both buyers and sellers. South Korea Used Car Market is expected to grow at a CAGR of 1% on the basis of sales volume over the forecast period 2021P - 2026F.
Key Segments Covered
By Market Structure
Organized
Unorganized

By Organized Channel Source of Lead generation
Online
Dealership walk-ins

By Sales Channel
B2C
C2C

By Type of Car
Luxury Sedan
Sedan
Hatchback
SUV
MPV
Others (Sports car, Station wagon)

By Engine Size
2000 CC and Below
2000 CC - 3000 CC
3000 CC - 4000 CC
4000 CC and Above

By Brand
Hyundai
Kia
GM Korea
Renault Samsung
Ssangyong
Benz
BMW
Genesis
Audi
Volkswagen
Others (Includes both domestic and international brands)

By Region
Gyeonggi
Seoul
Gyeongnam
Gyeongbuk
Incheon
Busan
Chungnam
Dae-Gu
Jeonnam
Jeonbuk
Chungbuk
Gangwon
Gwangju
Daejeon
Ulsan
Jeju
Sejong

By Age
0-2 Years
2-4 Years
4-6 Years
6-8 Years
8-10 Years
More than 10 Years

By Mileage
Less than 20,000
20,000 - 40,000 Km
40,000 - 60,00 Km
60,000 - 80,000 Km
80,000 - 100,000 Km
Over 100,00 Km

By Fuel
Petrol
Diesel
Electric
Others (Petro-Electric, Diesel-Electric, etc.)

By Transmission Type
Auto
Manual
Others (Semi-Auto, CVT)

Companies Covered
Authorized Dealers
Benz Hansung
BMW Deutsch Motor
BMW Bavarian Motors
KCC Auto

C2B/C2B2C/B2C
K-Cars
Aj SellCar
Autohands
Hey Dealer
U-Car
Autoplus

Online Portals - Online Auto Classified Platforms
Encar
Kb Cha Cha Cha

Auction Players
Hyundai Glovis
Lotte Rental - Auction
Aj SellCar Auction
K Car Auction
Time Period Captured in the Report:-
Historical Period - 2015-2021P
Forecast Period - 2021P-2026F

Key Topics Covered in the Report
Executive Summary
Research Methodology
South Korea Used Car Market Overview
South Korea Used Car Market Size, 2015-2021P
South Korea Used Car Market Segmentation, 2021P
Growth Drivers in South Korea Used Car Market
Issues and Challenges in South Korea Used Car Market
Government Regulations
Ecosystem and Value Chain of Used Car Industry in South Korea
Customers Purchase Decision Making Parameters
Cross Comparison between Major Authorized Dealers and Multi-brand Dealers
Snapshot on Online used car market
Future Market Size and Segmentations, 2021P - 2026F
Covid-19 Impact on the Industry & the way forward
Analysts' Recommendations

For more information on the research report, refer to below link:-

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/south-korea-used-car-market-outlook-to-2026/515067-100.html

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