South Korea Used Car Market Outlook: Ken Research

1. Expansion of Distribution Network Sets the Path for Used Car Sales to Reach More Than 2.5 Mn by 2026; What Are Its Significance in The Upcoming Years? Ken Research There has been a consistent increase in used car sales between 2019 and 2021 as consumer income levels fell due to the pandemic, customers preferred purchasing pre-owned cars. Used car sales to witness a CAGR of 1.0% over 2021-2026, as per findings released by Ken Research. 1. Low Unemployment Rate and Moderate Labor Force Participation Rate Facilitating an Increase in Demand for Personal Vehicles; Helping the Used Car Market GTV to Reach nearly 35 Tn Won by 2021. Labor Force Participation, 2021 Urban Population 81.4% Total Labor Force 28.6 M Unemployment Rate 3.8% Labor Force Participation Rate 63.2% Average Annual Wage $41,960 (2020) Annual Household Income Per Capita $17,788 (2020) Click Here to know More about demographic dividends in South Korea Low Unemployment Rate of nearly 4% and Moderate Labor Force Participation Rate of nearly 60% facilitates an Increase in Demand for Personal Vehicles. South Korea's automobile industry is the fifth largest producer of passenger cars in the world (2021). The automobile industry accounts for 13% of manufacturing output and generates 12% value added.

2. 2. Pre-Owned Car Buyers Can Receive or Buy, In-House or Third-Party Warranties, from Authorized Dealerships or Independent Dealers Along with the Car. Warranty covers mechanical breakdowns and failures caused by wear and tear, defects and poor maintenance. It might not include oil changes, routine maintenance and replaceable parts. For pre-owned cars, the warranty is offered or can be bought from a third-party like a workshop.The warranty offered by non-authorized dealers can be dependent on the pre-inspection results to meet the warranty requirements and standards. In addition to this, the Korea Automobile Diagnosis Guarantee Association (KAIWA) undertakes the development and dissemination of performance condition inspection and warranty of used cars, and diagnostic evaluation (including price research and calculation). Typical Warranty Coverage (Based on Kia Warranty) Powertrain: New owners can receive powertrain coverage for 10 years or 100,000 miles (whichever comes first). For about 5 years or 60,000 miles. If it’s completely defective within the first 3 years or 36,000 miles of ownership. A new vehicle can get air conditioning refrigerant charge coverage for one year. Bumper-to-Bumper Coverage: Battery: Air Conditioning Refrigerant: Interested to Know More about this Report, Request a Sample Report 3.There is a High Expected Growth of Used Cars in Future Predicted by Goldman Sachs; Used Car Market is Expected to Grow to nearly 50 Tn Won By 2030. Goldman Sachs - which was part of the Book Building Process for K Car's IPO - has predicted that the used car market is expected to grow to nearly 50 Tn Won by 2030 and the growth would be led by increased online penetration. Furthermore, Growth in 2020 and 2021 was higher in the used car market due to the shortage of semiconductor chips in the market which resulted in higher prices for new cars, shifting the demand for Used Cars. Follow Us Facebook | Twitter | LinkedIn | Instagram