Janghanpyeong Used Car Sales Complex.  (Maekyung DB)

Hyundai Motor and Kia used car sales postponed to May next year… Hyundai Motor stock price ends slightly lower

Janghanpyeong Used Car Sales Complex. (Maekyung DB)

Shares of Hyundai Motor and Kia Motors closed the market with disappointing results after news of the delay in advancing into the used car business. Investors’ expectations for earnings turned to disappointment as finished car makers delayed their entry into used cars.

On April 29, Hyundai Motor finished the transaction at 186,000 won, down 1.33% from the previous trading day. Kia showed a downward graph throughout the day, then recovered only late in the afternoon and closed at a flat rate of up 0.12%.

The Ministry of SMEs and Startups decided to postpone the entry of large companies into the used car market for one year until May 2023 at the Small and Medium Business Business Coordination Council on April 28. Hyundai and Kia plan to start a pilot project in January 2023 in accordance with the recommendations of the Ministry of SMEs and Startups and supply certified high-end cars to consumers in earnest in May of the same year.

Hyundai Motor and Kia expressed their disappointment with the results of the adjustment by the Ministry of SMEs and Startups, saying, “Considering consumers who desperately want changes in the used car market, it is a rather disappointing result.” “It is regrettable that the recommendation for a one-year suspension of business start-up is not sufficiently considered by consumers who expect reliable, high-quality used cars and a transparent and objective trading environment provided by the auto industry.”

Hyundai Motor and Kia said, “We plan to promote the used car business with the goal of increasing the rights and interests of used car consumers, the quantitative and qualitative development of the used car market, and coexistence with the existing used car industry.” As a way to do this, he added that he would set an upper limit for market share by year, enter the market in stages, and supply vehicles that are not subject to certified used car sales to the used car sales industry. In addition, he promised to contribute to the resolution of monopoly on information and enhancement of transparency in the used car market by establishing an integrated used car information open system.

On the other hand, the Korea Automobile Manufacturers Association (KAMA), a domestic automaker, expressed regret and protested the decision of the Ministry of SMEs and Startups. In a press release, KAMA criticized, “With a one-year grace period, etc., not only did they turn away from consumers’ aspirations for advancement, but, as a finished car company, they were subjected to discriminatory regulations for a considerable period of time, unlike platform conglomerates and imported car companies.” “In a market economy system, government intervention should be done in a way that enhances market vitality and innovation by promoting competition,” KAMA Chairman Man-ki Jeong said.

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