This graphic shows emblems of key foreign car brands with business operations in South Korea. (Image courtesy of Yonhap)
SEOUL, Feb. 29 (Korea Bizwire) — Imported car purchases among those in their 20s and 30s fell nearly 18 percent on-year in 2023 amid a slowdown of the economy and high interest rates, industry data showed Thursday.
According to data from the Korea Automobile Importers & Distributors Association, the number of newly imported cars registered by individuals in their 20s and 30s last year stood at 48,178, down 17.9 percent from 58,661 in the previous year.
The rate of new imported vehicle registrations in the age group against all import registrations fell to 17.8 percent, dropping under the 20 percent mark for the first time since 2014.
Industry watchers attributed the decline to the prolonged economic downturn along with increased interest rates negatively affecting installment purchase schemes commonly adopted by young car buyers.
Further, the increasing trends of used car purchases and vehicle-sharing services have also contributed to the decrease in registration numbers, watchers said.
Kim Pil-soo, an automotive engineering professor at Daelim University, said, “There was a new term called ‘car-poor,’ referring to young generations who struggled financially after purchasing high-priced imported cars through installment plans.”
He added, “Now, it seems even that is no longer feasible.”
(Yonhap)
