Revenue of the used car market South Korea 2013-2017
In 2017, the used car market in South Korea recorded revenue in excess of ten trillion South Korean won for the first time. According to the source, the annual growth rate of the used car market over the five year period from 2013 to 2017 was on average 18.8 percent.
Growth without worry
In 2013, the used car market was designated as a "SME suited sector" by the South Korean government, which blocked larger corporations from entering or expanding existing operations in the market. With the hands of large corporations effectively tied, smaller players were able to enter the market without restraint. The recorded revenue growth was largely attributed to small and small-medium enterprises in South Korea.
Problems under the surface
In contrast to the growth in sales, profits drastically decreased for enterprises in the market. The absence of larger players resulted in the oversaturation of the market. Additionally, consumers have been voicing their distrust in used car dealers, with reports of fraudulent listings happening frequently. The landscape of the mobility industry is also expected to shift in the future, and consumers’ opinions on car ownership are also changing.
Growth without worry
In 2013, the used car market was designated as a "SME suited sector" by the South Korean government, which blocked larger corporations from entering or expanding existing operations in the market. With the hands of large corporations effectively tied, smaller players were able to enter the market without restraint. The recorded revenue growth was largely attributed to small and small-medium enterprises in South Korea.
Problems under the surface
In contrast to the growth in sales, profits drastically decreased for enterprises in the market. The absence of larger players resulted in the oversaturation of the market. Additionally, consumers have been voicing their distrust in used car dealers, with reports of fraudulent listings happening frequently. The landscape of the mobility industry is also expected to shift in the future, and consumers’ opinions on car ownership are also changing.
