Jang Seob Yoon
Research expert covering South Korea
Passenger cars in South Korea - statistics & facts
Car ownership appears to be shifting gears in South Korea. The significance of the domestic automotive industry is underlined by its intertwined nature with the nation’s economic development. Passenger cars are a fixture in everyday life, being the most used mode of transport among the population. However, changing opinions regarding vehicle purchasing and disruptive developments such as alternative mobility solutions suggest changes that could be afoot in the South Korean market.
What kind of cars do South Korean consumers prefer?
The number of licensed drivers in South Korea generally follows the demographic trends of the country. With the majority of the population living in urban environments and the largest number of drivers being middle-aged, most privately owned vehicles are used as family cars. This has led to a preference for Sports Utility Vehicles (SUVs) or even Multi-Person Vehicles (MPVs) as their bigger capacity offers more versatility compared to regular-sized models. Although imported cars are still considered to be a status symbol, they are becoming more prevalent than before.Potential changes in car ownership in South Korea
Contemporary consumers have a wide range of options when considering car purchases. While cash and installments remain the primary methods of payment, there is growing awareness about alternative financing methods like leasing or long-term rentals. The used car market is also expected to gain further traction as domestic manufacturers begin their full-scale entries into the scene, having been previously limited by regulations. Additionally, car-sharing services have established themselves as attractive alternatives to fully owning a personal car.Outlook on passenger cars in South Korea
South Korean consumers have displayed an inclination toward larger vehicles, and foreign automakers appear to be gaining a foothold in the domestic market. Traditional methods are still considered the norm, although awareness of different financial solutions is gradually rising. Despite minor shifts, passenger cars appear to remain a relatively stable sector in the country. However, with the industry actively working on autonomous driving technology and the emergence of various mobility services, there are currently discussions about transportation moving forward on a fundamental level being opened.
