South Korea Orders Hyundai, Kia To Delay Entering Pre-Owned Car Market - Reports

SEOUL (Pakistan Point News / Sputnik - 29th April, 2022) South Korean government ordered Hyundai Motors and its subsidiary Kia to push their plans to enter the used car market until next May to minimize their impact on existing players, particularly small and medium enterprises (SMEs), South Korean news agency Yonhap reported on Thursday.

According to the agency, the South Korean Ministry of SMEs and Startups decided not to classify sales of pre-owned cars as "livelihood businesses," i.e. reserved for small businesses and start-ups. This decision opened the market to automotive giants such as Hyundai Motors and, quite predictably, was met with harsh criticism from associations of used car dealers, the news outlet said.

The government organized several meetings between Hyundai Motors and representatives of these associations, but the parties failed to reach an agreement. As a result, Hyundai and Kia's entry into the used car market was postponed until May 2023.