On the 17th, the Ministry of SMEs and Startups did not designate the used car sales business as a suitable business for a livelihood, opening the way for large corporations to enter the used car market.
Previously, Hyundai and Kia Motors announced that they would sell used cars that passed their quality check within 5 years of purchase and mileage of 100,000 km. known.
Consumers have been found to be more in favor of it. According to the results of a survey of 1,000 adult men and women in their 20s and 60s nationwide, commissioned by the Citizens’ Council for Consumer Sovereignty to Hangil Research in April of last year, the percentage of respondents who answered ‘positive’ in relation to the entry of finished car manufacturers into the used car market was 56.1% (±3.1%p at 95% confidence level of sampling error).
On the other hand, the used car seller group strongly opposed the designation of the industry suitable for livelihoods.
The Korea Automobile Dealers Association issued a statement on the 21st, saying, “It is contradictory to say that the market will vaguely improve if large corporations run it.” criticized.
As this group claims, will both consumers and sellers face a disadvantage due to monopoly and oligopoly if a large corporation starts a used car sales business?
The Segye Ilbo video team hired Seong-ro Yoon, CEO of ‘Motrine’, a car review community, as a person to convey a consumer’s perspective, and Hae-seong Ji, Secretary General of the Korea Automobile Dealers Association as a person to convey the seller’s point of view and listened to their opinions.
◆What are the problems of the existing industry?
When asked what they thought was the reason for the opaque, turbid, and outdated used car sales market in the survey of the Consumer Shareholders’ Rights Citizenship Council, 54.4% of the respondents pointed out ‘false and bait for sale’.
As such, the representative cause of distrust in the existing used car market is false sales.
“Fake listings are put forward by an organization organized for the purpose of crime around the trading complex,” he said.
“In the end, it should be resolved strongly by the public authorities,” explains Director Ji.
Regarding this, CEO Yoon countered, “I feel that the industry has no will to calm down just by seeing such evasive remarks.”
He continued, “Isn’t it not the case that the seller of a fake property calls the consumer and takes their money?” He said, “It’s a problem because they lure consumers with a fake sale and then make a strong sale. It means that an official trading firm is involved.”
◆Is it beneficial for consumers?
Regarding the association’s assertion that ‘used car prices rise due to monopoly and oligopoly, consumers will also suffer damage’, said CEO Yoon. and criticized it.
He continued, “It is impossible to know the exact condition of a vehicle only with the accident history and insurance history provided. said.
On the other hand, Director Ji said, “The price of Hyundai/Kia cars for sale within 5 years or 100,000 km will of course rise, and the remaining items for sale at Hyundai/Kia will also make a profit, so general traders are not buying products. The price will also go up,” he explained.
“There is no choice but to become a market where prices have risen rather than the market that consumers wanted.”
◆Is there any way to coexist?
As it is no longer possible to prevent large corporations from entering the used car sales business, it is now necessary to discuss how to coexist with existing dealers.
Director Ji also acknowledged, “It would be best if large corporations did not enter the market, but it is true and meaningful that consumers want to enter the market.”
However, he said, “I think that it is not suitable for both consumers and sellers to wholesale the vehicles inspected by Hyundai and Kia through the certification program to existing suppliers.”
On the other hand, CEO Yoon’s opinion is that, rather than placing conditions from the start, post-regulation is necessary when problems arise following large companies enter the used car market.
CEO Yoon said, “For example, there was a time when large corporations were entering the large supermarket business, but as time passed and side effects began to arise, regulations such as a biweekly holiday came out one by one. It’s difficult,” he said.
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]
