<Anchor> This
is a friendly economic time.
Today (18th) I will be with Han Ji-yeon.
Hello reporter.
It seems that large corporations like Hyundai are now able to enter the used car market.
<Reporter>
Yes, that's right.
Will the used car market allow automakers like Hyundai to enter the market?
Or, as before, a meeting was held yesterday to decide whether to tie it up as a subsistence sector, and after 11 hours of long discussion, it was decided not to be included in the subsistence sector.
The Ministry of SMEs and Startups decided that the used car sales business did not meet the criteria for small scale because the proportion of small business owners was low compared to other wholesale and retail businesses and auto parts sales businesses, and their average annual sales were large.
In addition, it comprehensively considered the fact that there are many more advantages and a wider range of choices for consumers.
However, he expressed the opinion that it is necessary to come up with a plan for coexistence between the industries as damage to the small business is expected.
<Anchor>
But it wasn't a day or two that such a decision or such a story came out.
It seems quite old, but I think it took a long time to come to a conclusion.
Why is that?
<Reporter>
First, to explain the process, the used car sales business was designated as an industry suitable for livelihoods that restrict entry into large companies in 2013.
This system goes through the procedures designated and announced by the Ministry of SMEs and Startups after the mutual growth committee deliberates and decides.
In February 2019, this protection period expired, so the used car industry asked for re-designation, and in November of the same year, the Shared Growth Committee submitted an opinion to the Ministry of SMEs and Startups.
According to the regulations, the Ministry of SMEs and Startups had to make a decision by May 2020, but it was put on hold due to strong opposition from the used car industry.
About two years later, the Deliberation Committee was held in January of this year, but it was still unsuccessful.
The reason was that the fact-finding data of the Shared Growth Committee did not match the current market.
In the end, the meeting was held yesterday based on the latest fact-finding data.
It was decided after this election, which took three years.
There are also interpretations that the decision was postponed conscious of the policy direction of the next government.
<Anchor>
While the government is delaying the decision, automakers are already ready to enter the used car market, aren't they?
<Reporter>
There are no legal problems with large corporations entering the used car market.
So, in December of last year, we announced our entry into the used car market.
Hyundai and Kia have already announced specific plans.
Hyundai Motor Company already applied for registration of automobile sales business in Yongin, Gyeonggi Province in January, and announced a mid-term win-win plan at the beginning of this month, including limiting its market share.
Kia Motors has also applied for used car business registration in Jeongeup, Jeollabuk-do.
However, even if you are prepared this way, it seems that you will not be able to enter the used car market right away.
This is because, in January, the Ministry of SMEs and Startups issued a recommendation to temporarily suspend the business when the used car trading industry applied for business adjustment to prevent large companies from entering the market.
Although it is not impossible to start a business if you pay a fine of 100 million won as it is only a recommendation, there is a prediction that it will not choose to face headwinds in a hurry in a situation where there is strong opposition from the existing used car industry.
<Anchor>
Then, it is unlikely that Hyundai and Kia will enter the used car market right away.
I think it will take some time.
Now, in order for that to happen, it seems like it will have to come to an agreement with the existing used car companies and large corporations by arranging a plan for coexistence.
<Reporter>
This existing used car group has opposed the entry of large companies, saying that it is an infringement of the commercial area in the alley and there are concerns about monopoly.
A monopoly is a monopoly when one company has a market share of more than 50% and three or less companies have a market share of 75%.
A group of automakers is claiming that the used car market share of the finished car industry will be only 12.9% by 2026.
In addition, Hyundai Motor's plan for win-win growth states that it will limit its market share to 5% by 2024.
However, it is the position of the used car industry that these words cannot be trusted.
In the new car market, Hyundai and Kia have a share of 90%, and it is not only advantageous for large companies to purchase used cars, but also for large companies to make a lot of profits if they focus on large or luxury cars.
There is also a demand to come up with a win-win plan that sets the rate of market entry for large corporations in stages.