<Anchor> This
is a friendly economic time.
Today (18th) I will be with Han Ji-yeon.
Hello reporter.
(Hello.) It seems that large companies like Hyundai can now enter the used car market.
<Reporter>
Yes, that's right.
A meeting was held yesterday to decide whether the used car sales market would allow finished car companies such as Hyundai Motor to enter the market, or whether it would be tied to a livelihood industry as before.
The Ministry of SMEs and Startups decided that the used car sales business had a lower proportion of small businesses compared to other wholesale/retail businesses or auto parts sales businesses, and their average annual sales were large, so they did not meet the criteria for small scale.
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 win-win growth between the industries as damage to small business owners 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.
(Yes, it took three years.) Why?
<Reporter>
First, to explain the process, the used car sales business was designated as a business suitable for livelihoods that restrict entry to large companies in 2013. This system goes through a process 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 requested re-designation, and in November of the same year, the Shared Growth Committee submitted an opinion to the Ministry of SMEs and Startups that it is not a subsistence type.
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.
In January of this year, about two years later, the Deliberation Committee was held, but it was also 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, and it was decided after the presidential election after dragging 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 they announced their entry into the used car market last December, and 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, but now, for that to happen, I think we will have to come up with a plan for coexistence with existing used car companies and large companies and come to an agreement.
<Reporter>
This existing used car group has resisted, saying that when entering a large company, it is an infringement of the alleyway and there are concerns about monopoly.
A monopoly is a monopoly when one company has a market share of 50% or more and three or less companies have a market share of 75%.
The automakers group is claiming that the used car market share of the finished car industry will be only 12.9% by 2026, and Hyundai Motor's win-win plan states that the market share will be limited to 5% by 2024.
However, it is the position of the used car industry that these words are not to be believed.
In the new car market, Hyundai Motors and Kia Motors account for 90% of the market share. Not only is it advantageous for large corporations to purchase used cars, but also large corporations have no choice but to make a lot of profits if they focus on large cars 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.