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Opportunities and Challenges for Korea in the Global Market for Used Vehicles

Author

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  • Kim, C.K.

    (Korea Institute for Industrial Economics and Trade)

Abstract

Advancements in production technology have significantly improved automobile performance and lifespan, nearly doubling the average useful life of a vehicle in Korea to 16 years in 2021, up from just 8.3 in 2000. However, a consumer survey by a secondhand vehicle sales company in 2023 found that Koreans typically change their vehicles every three to six years. This suggests that most vehicles are traded several times over their lifecycle, and in Korea, this includes export abroad. Used vehicle exports extend the vehicle’s life and contribute to the formation of a circular economy, and also minimize the amount of resource waste generated in the scrapping process. In this paper I explore the rapidly evolving used vehicle market, focusing on exports, and provide a suite of policy recommendations based on my findings to improve the competitiveness of Korea’s used vehicle exports.

Suggested Citation

  • Kim, C.K., 2024. "Opportunities and Challenges for Korea in the Global Market for Used Vehicles," Industrial Economic Review 24-6, Korea Institute for Industrial Economics and Trade.
    • Handle: RePEc:ris:kieter:2024_006
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    More about this item

    Keywords

    used vehicles; used cars; secondhand vehicles; used vehicle exports; circular economy; export regulations; SMEs; used vehicle inspection; used vehicle quality certification; Korean used vehicles; Hyundai; Kia; Genesis; automotive industry; Automobile Management Act; Korea; KIET;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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