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| ▲ This file photo taken March 11, 2022, shows a used car dealership in Janganpyeong, eastern Seoul. (Yonhap) |
Hyundai-Kia-used car business
Gov't orders Hyundai, Kia to delay used car business by one year
SEOUL, April 28 (Yonhap) -- The South Korean government on Thursday ordered Hyundai Motor Co. and its smaller affiliate Kia Corp. to delay their plans to enter the used car market by one year to minimize the impact of their advance on existing players.
In March, the Ministry of SMEs and Startups decided not to designate secondhand car sales as one of the "livelihood businesses" that must be reserved for small enterprises and startups, paving the way for conglomerates, like Hyundai Motor Group, to enter the market.
The decision invited strong objection from the country's used car dealer associations.
The government has arranged several meetings between Hyundai Motor Group and representatives from the associations to narrow gaps between them.
But they failed to reach an agreement, and the ministry ordered the compulsory mediation on the matter.
The ministry ordered Hyundai and Kia to begin their used car business from May next year.
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