Jang Seob Yoon
Research expert covering South Korea
Automotive industry in South Korea - statistics & facts
Two of the ten leading car brands in the world are South Korean companies. Manufacturing is a pillar of the country’s economy, and the automotive industry is a key part of the sector. Underlined by its connections to several other major businesses such as displays, semiconductors, and batteries, automotive manufacturing has become one of the nation’s core industries. Starting out by assembling cars in a U.S. military jeep-style body, South Korea is now home to leading automakers such as Hyundai Motor and Kia.
South Korean car companies
The prevalence of Hyundai Motor Group, consisting of Hyundai Motor, Kia, and Genesis, is undisputed within the industry. During the 1997 Asian financial crisis, Kia merged with Hyundai, and the two companies have provided healthy competition for each other despite being under the same umbrella. Rounding up the conglomerate is premium brand Genesis, which has proven to be popular among consumers. Another domestic producer is KG Mobility, which has officially rebranded from Ssangyong Motor.Foreign automakers in South Korea
Apart from imported car brands, there are three foreign-owned domestic carmakers in the country. All of them have close ties with South Korean companies in their history, with various factors that led to their contemporary ownership. Once among the corporate elite, the fall of Daewoo Group eventually led to the establishment of GM Korea and Tata Daewoo. GM Korea sells Chevrolet vehicle models, while Tata Daewoo focuses on commercial vehicles. In the case of Renault Korea, the French company acquired Samsung Group’s automobile division and included the well-known Korean company’s name in its branding for over two decades before dropping it in 2022.Industry outlook
South Korea’s automotive industry has steadily developed into one of the global leaders. Among its six major domestic automotive manufacturers, Hyundai Motor and Kia are prominent companies with a significant presence, featuring on a ranking of the greenest car models worldwide. Moving forward, the industry will likely continue its pursuit of environmentally friendly vehicles and autonomous driving technologies. However, wider economic and geopolitical uncertainty in recent times depict a challenging framework to operate in for any company.
