Hyundai Motor Company declares to enter the'used car market' Used car industry'backlash'

Hyundai Motor Company has officially declared its entry into the used car market.

It is said that it is an inevitable strategy to increase consumer rights, but it is expected that the conflict will intensify after the existing used car dealers have rebelled.

Hyundai Motor Executive Vice President Kim Dong-wook appeared at the National Assembly's Ministry of Trade, Industry and Energy's Small and Medium Venture Business Committee's state audit, saying, "70-80%, including those who have purchased products in the used car market, have problems with trading practices, quality evaluation, and There is," he argued, "to protect consumers, the finished car should do business."

Managing Director Kim also added, "The fundamental problem is a system that can make quality evaluation and price calculation fair and transparent," and added, "We can operate an'open platform' by sharing the know-how and information of finished car companies as much as possible." .

It is intended to be able to coexist enough with existing used car companies.

There have been voices saying that it should be able to enter the used car trading market of automakers, but this is the first time that an incumbent senior executive has revealed this directly.

The market for used car sales reached 20 trillion won, but it was designated as a suitable business for small and medium-sized businesses in 2013, restricting large companies from entering or expanding existing businesses.

For this reason, the SK Group, which operated SK Encar, could not overcome the limitations of business expansion and even sold its business.

In the beginning of last year, after the deadline for designation ended, existing companies applied for designation of a livelihood-type suitable business that restricts entry into large and medium-sized companies, but the Shared Growth Committee concluded in November last year that it was inappropriate.

Currently, only the decision of the Ministry of SMEs and Startups remains.

Earlier last month, the Korea Automobile Industry Association also claimed that domestic automakers were unable to enter the used car trading market, and that domestic used cars were less competitive than imported cars and that consumer distrust was not improving.

The Ministry of SMEs and M&A said first of all to submit additional win-win plans to Hyundai.

Mid-term Minister Park Young-sun said, "If you manage used cars by creating an open platform, the car brand value will increase from the perspective of Hyundai and Kia Motors, it is good because it is reliable from the perspective of consumers, and the used sales industry will be able to improve the image of the past." ·If Kia Motors enters the used car sales business and makes a profit, I don't think this will happen.”

This is the intent that Hyundai Motors should focus on enhancing brand value and competitiveness rather than making profits in the used car market.

However, the existing used car companies strongly opposed.

Kwak Tae-hoon, chairman of the Korea Automobile Trade Association, said, "Currently, K-Car sells 200-250 cases per month, but our member companies are only 15-16 units, so it is very difficult." "The livelihood of people is threatened."

At the same time, they repeatedly requested to designate a suitable industry for livelihood.

Although the used car market is large, there have been complaints about the lack of trust between sellers and consumers, and in the process, a lot of low-quality products are being traded.

Currently, the number of related workers is 6,000, and the number of workers is 55,000.