Insights

DISCOVER

COMPANY

Survey

SURVEY

Create New Account

Book discovery call

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

Region:Asia

Author(s):Kanishka Chakraborty and Divya Tyagi

Product Code:KR1121

Download Sample Report

Published On

February 2022

Total pages

Download Sample Report

About the Report

The report titled “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” provides a comprehensive analysis of the used car market trends and performance in South Korea. The report covers several aspects such as volume of used cars sold & market size in terms of gross transaction value, target audience, growth facilitators, Government regulations, constraints & challenges faced by the industry, and so on. The report also covers a snapshot on South Korea online used car market, business models, value chain analysis, SWOT analysis, buying decision parameters, competitive scenario and company profiles. South Korea Used Car Industry report concludes with projections for the future of the industry market size, market segmentation, the impact of Covid-19, and analyst take on the future market scenario.

South Korea Used Car Market Overview and Size: South Korea Used Car market increased at a CAGR of 0.8% (by sales volume in units) during 2015-2021P. The market has reached its maturity phase. A combination of restrictions on public transport and a movement towards private travel has accelerated the sale of used cars. Moreover, the availability of various financing facilities offered through banks and NBFIs, high internet penetration and increased government spending have been instrumental factors in facilitating the growth of the South Korean used car market.

South Korea Used Car Market Segmentations

By Market Structure (Organized, and Unorganized): The organized segment dominates the South Korean used car market covering about 90% of the overall market space. The removal of restrictions on big finished car makers’ entry into the local used car market in 2019 and the formal entry of these players in 2022 will further contribute to increasing the organized used car market.

By Organized Market Source of Lead generation (Online, Dealership walk-ins): The lead generation for used cars is South Korea has primarily taken place via the online platforms. The Authorized Dealers showcase the available used cars for sale mainly through their own websites. While, several multi-brand dealers prefer listing their inventory on the classified platforms as well. For buying and selling used cars in South Korea, social networking sites like Kakaotalk, Facebook, and Instagram are gaining traction.

By Sales Channel (B2C and C2C): B2C sales in South Korea mainly occur through dealership walk-in and inventory listed on online classified platforms or through dealers’ websites and Instagram pages, while C2C sales are mostly generated based on Online Classifieds & Offline References from friends & family. Social Media platforms like Kakaotalk and Facebook, are used extensively for C2C promotions and advertisements in order to reach a large set of potential customers quickly and free of cost.

By Type of Car: SUVs andLuxury Sedans are quite popular in South Korea. SUVs, Sedans and Luxury Sedans account for more than 70% of the market share.

By Brand: Hyundai is the market leader in South Korea accounting for the major share of used cars sold by volume. Korean made brands such as Hyundai, Kia Motors and Ssangyong Motor, are some of the most preferred car brands due to strong brand preference, reliability and longer life span of the pre-owned car. Amongst the continental cars, BMW and Mercedes Benz are the most preferred.

By Region: Most of the used cars market is concentrated in the Gyenonggi and Seoul region in South Korea.

By Age: Generally, any new car in South Korea is owned for 3 - 4 years before being sold to another owner. Therefore, the average age of used cars in the country also lies within the same bracket.

By Kilometers Driven: Cars with a mileage of 60,000-80,000 kilometers dominated the used cars market in South Korea in the year 2021P.

By Fuel: Petrol and diesel run cars dominate the used car market in South Korea. Electric and hybrid cars accounted for about 10% in 2021P.

Snapshot on Online Used Car Landscape

The number of online used car portals and marketplaces have risen significantly along with rising internet penetration in South Korea over the last few years. Major dealers such as K-Cars, Aj SellCar, Autoplus and others are using online platforms to increase their sales. Hence, there was an inevitable expansion in the lead generation of used cars via the online means. Social networking sites including Facebook and Instagram play a key role in expanding the used cars market in South Korea. The emergence of online auto-portals and classified platforms such as Encar and Kb Cha Cha Cha have provided increased visibility and credibility to the customer-to-customer transactions in the unorganized segment. South Korea had one of the fastest internet networks around the world. The internet infrastructure has been a high priority in numerous governmental regulations that led to its rapid and thorough expansion, contributing positively to the growth of the industry.

Competitive Landscape of South Korea Used Car Market

Various authorized dealerships, multi-brand outlets & independent (standalone as well as clustered dealers) operating in the industry have led to increased competition in the used car market. Most multi-brand dealers are providing value-added services including easy financing options, handling the paperwork and warranty, expanding their market share and competing with authorized dealers.

South Korea Used Car Future Outlook & Projections

The used car industry in South Korea is expected to demonstrate a decent growth in the future. It is expected to increase at a five-year CAGR of 1.0% (by sales volume in units) from 2021P to 2026F. It is expected that the share of the organized segment in the space of the used car will increase over time as more brands are planning to enter the OEM pre-owned certified space. Certain foreign established C2B players are too considering South Korea Used Car market a growing and profitable venture. Moreover, people in South Korea are realizing the advantages of buying a pre-owned car through authorized outlets as there has been a shift in general consumer preferences.

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

Products

Time Period Captured in the Report:-

Historical Period – 2015-2021P
Forecast Period – 2021P – 2026F

Companies

Key Segments Covered

By Market Structure

Organized
Unorganized

By Organized Channel Source of Lead generation

Online
Dealership walk-ins

By Sales Channel

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

1. Executive Summary

1.1 Flow Chart

1.2 Used Car Ecosystem

1.3 Genesis of Used Car Industry in South Korea

1.4 Used Car Offline Business Models

1.5 Cross Comparison across Countries

2. Country and Economic Overview

2.1 Macro Economic Overview

2.2 Ease of Doing Business in South Korea

2.3. Demographic Overview

2.4 E-Commerce Overview

2.5 E-Commerce Penetration

3. Supplementary Services

3.1 Trends and Developments in South Korea Auto Finance Industry

3.2 South Korea Auto Finance Market Ecosystem

3.3 Comparison between Banks

3.4 Comparison between Non-Bank Financial Institutions

3.5 Auto Insurance

3.6 Aftermarket

3.7 Warranties

4. Overview, Opportunity & Current Scenario of the Industry

4.1 Value Chain of Used Car Industry in South Korea

4.2 Sourcing of Used Cars for Dealers and Direct Buyers in South Korea

4.3 Lead Generation of Used Cars for Dealers and Direct Consumer Purchases in South Korea

4.4 SWOT Analysis

5. Demand & Supply Analysis

5.1 Market Sizing Analysis for South Korea Used Car Industry basis Volume & GTV, 2015-2021

5.2 Impact of Covid-19

5.3 Segmentation: By Market Structure (Organized and Unorganized Market), 2021

5.4 Further Segmentation of Organized Channel: By Source of Lead Generation (Online and Dealership Walk-Ins), 2021

5.5 Segmentation: Basis Sales Channel (B2C and C2C) and C2C Sourcing Proportions, 2021P

5.6 Segmentation: By Car Body Type (SUVs, Sedans, Luxury Sedans, Hatchbacks, MPVs, Others), 2021P

5.7 Segmentation: By Brand (Hyundai, Kia, GM Korea, Renault Samsung, SsangYong, Mercedes Benz, BMW, Genesis, Audi, Volkswagen and Others), 2021P

5.8 Segmentation: By Mileage (20,000 Km, 20,000 - 40,000 Km, 40,000 - 60,000 Km, 60,000 - 80,000 Km, 80,000 -100,000 km and Over 100,000 Km), and Type of Fuel Engine (Petrol, Diesel, Electric and Others), 2021P

5.9 Segmentation: By Regions (Gyeonggi, Seoul, Gyeongnam, Incheon, Busan, Chungnam, Dae-Gu, Jeonnam, Jeonbuk, Chungbuk, Gangwon, Gwangju, Daejeon, Ulsan, Jeju, Sejong), 2021P

5.10 Segmentation: By Vehicle Age ( 0-2 years, 3-4years, 4-6 years, 6-8 years, 8-10 years and more than 10 years), 2021P

5.11 Segmentation: By Engine Size (Below 2000 cc, 2000 - 3000 cc, 3000- 4000 cc, and Above 4000 cc), Transmission Type (Auto, Manual and Others) and Car Parcs, 2021P

6. Industry Analysis

6.1 Trends and Developments in South Korea Used Car Market

6.2 Challenges and Restraints

6.3 Government Regulations Overview

6.4 Car Sales Regulations

6.5 Car Verification

6.6 Car Engine Requirements - Gasoline Vehicles

6.7 Car Engine Requirements - Diesel Vehicles

6.8 Car Transfer Regulation

6.9 Used Car Financing Options

6.10 Decision Making Process in Buying a Used Car in South Korea

7. Competitive Landscape

7.1 Competition Landscape for South Korea Used Car Market

8. Snapshot on Online Used Car Platforms in South Korea

8.1 Customer Pain Points in Used Car Industry

8.2 Online Used Car Marketplaces Business Models

8.3 Proposed Business Framework

8.4 Online Used Cars Transactional Platforms in South Korea

8.5 Competition Scenario - Market Positioning of Auto Classified Portals

8.6 Cross Comparison Between Major Online Classifieds in South Korea Used Car Market (1/3)

8.7 Cross Comparison Between Major Online Classifieds in South Korea Used Car Market (2/3)

8.8 Cross Comparison Between Major Online Classifieds in South Korea Used Car Market (3/3)

8.9 Strengths and Weaknesses of Major Online classifieds

9. Snapshot on Auction Players

9.1 Cross Comparison Between Major Auction Players in South Korea Used Car Market (1/2)

9.2 Cross Comparison Between Major Auction Players in South Korea Used Car Market (2/2)

10. Snapshot on Authorized Dealers

10.1 Cross Comparison Between Major Authorized Dealers in South Korea Used Car Market (1/2)

10.2 Cross Comparison Between Major Authorized Dealers in South Korea Used Car Market (2/2)

10.3 Strengths and Weaknesses of Major Authorized Dealers

11. Snapshot on C2B Online Used Car Market in South Korea

11.1 Snapshot on C2B Online Used Car Market in South Korea

12. Snapshot on Major C2B Competitors

12.1 Cross Comparison Between Major Online C2B Players in South Korea Used Car Market (1/4)

12.2 Cross Comparison Between Major Online C2B Players in South Korea Used Car Market (2/4)

12.3 Cross Comparison Between Major Online C2B Players in South Korea Used Car Market (3/4)

12.4 Cross Comparison Between Major Online C2B Players in South Korea Used Car Market (4/4)

12.5 Strengths and Weaknesses of Major Online C2B Auto Portals

13. Future Outlook and Projections

13.1 Covid-19 Impact: South Korea Used Car Industry

13.2 Future Outlook & Market Size of Used Car Industry, 2021P-2026F

13.3 Future Market Segmentations: Market Structure and Source of Lead Generation (Organized Channel), 2026F

13.4 Future Market Segmentations Basis Sales Channel (B2C, C2C), Type of 13.5 13.5 Fuel Engine and Car Parcs, 2026F

13.6 Future Market Segmentations Basis Type of Car, 2026F

13.7 Future Market Segmentations Basis Brand, 2026F

13.8 Future Market Segmentations Basis Mileage, 2026F

13.9 Future Market Segmentations Basis Engine Size and Vehicle Age, 2026F

13.10 Future Trends and the Way Forward

14. Case Study Analysis

14.1 CarTrade (India)

14.2 Cars24 (UAE)

14.3 CarSwitch (UAE)

15. Analyst Recommendation

16. Appendix

Disclaimer

Contact Us

Why Buy From Us?

Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story

Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Client Choose Us?

400000+ Reports in repository

150+ Consulting project a year

100+ Analysts

8000+ Client Queries in 2022