South Korea: Local Used Car Sales, Exports to Break Record This Year

Seoul December 21, 2002; Kim Sung-jin writing for the Korean Times reported that sales of cars and trucks will reach the highest-ever figures this year despite the slowed economic recovery.

According to the Korean federation of Automobile Dealers' Association yesterday, domestic sales of used cars in the first 11 months of this year totaled 1.75 million units, up 4.3 percent from the record high of 1.68 million units seen during the same period last year.

The figure surpasses domestic sales of new cars, which had reached 1.48 million units by the end of last month.

The federation projects local secondhand car sales will hit a record high this year, exceeding last year¡¯s record of 1.82 million units.

Exports of secondhand cars between January and November this year also rose by more than 10 percent year-on-year to 112,043 units, from 101,684 units in the same period last year.

South Korea¡¯s used car exports stood at 3,177 units in 1992, but increased steadily to 21,357 units in 1995. After a brief dip in 1996, when exports plunged to 9,109 units, it rebounded to 35,732 units in 1997 and 81,512 units in 1999. Last year, exports skyrocketed to 110,117 units, up 25 percent year-on-year, breaking the 100,000 mark for the first time.

Passenger cars accounted for 45.6 percent, or 51,125 units, of total car exports in the 11-month period while vehicles with passenger capacity greater than seven accounted for 22.7 percent or 25,410 units. Freight cars and special vehicles made up 31.7 percent or 35,508 units.

``Even though secondhand car sales have slowed in November and December due to seasonal factors, the used car market has been favorable this year thanks to improved services from secondhand car dealers, such as the adoption of quality warranty system. The favorable used car export trend is also predicted to last for a quite a while,¡¯¡¯ a federation official said.

By Staff Reporter