The introduction of a distinctive “lime green” license plate system for corporate vehicles earlier this year has led to a significant drop in the registration of high-end imported corporate cars in South Korea. (Image courtesy of Yonhap)
SEOUL, Jul. 9 (Korea Bizwire) – The proportion of imported cars registered under corporate names in South Korea has fallen to an unprecedented low in the first half of 2024, dipping below 35% for the first time in recent history.
According to data released by the Korea Automobile Importers and Distributors Association (KAIDA) on July 8, out of 125,652 imported cars registered in the country between January and June, only 42,200 vehicles, or 33.6%, were registered under corporate names. This marks a significant decrease from the same period last year when corporate registrations accounted for 38.4% of the total, with 50,229 vehicles.
Analysts attribute this decline partly to a new regulation implemented in January, which mandates that corporate passenger vehicles valued at 80 million won or more must display a light green license plate. This measure appears to have had a notable impact on the high-end imported car market.
Looking at the past decade, the proportion of corporate registrations for imported cars has never been this low. In 2013 and 2014, corporate registrations hovered around 40%. The rate dropped to 35.2% in 2017 before rebounding to 39.7% last year.
This downward trend is expected to halt the steady growth in corporate registrations of imported cars seen in recent years. Annual corporate registrations of imported vehicles had been consistently rising since 2013, reaching 107,677 units in 2023. However, if the current trend continues, experts predict that corporate registrations may not surpass 100,000 units this year.
Among car brands, BMW led corporate registrations from January to May with 11,837 units, followed by Mercedes-Benz (10,383), Porsche (1,592), Tesla (1,503), and Lexus (1,320). This represents a shift from the same period last year when Mercedes-Benz topped the list with 14,560 corporate registrations, followed by BMW, Audi, Porsche, and Volvo.
Kevin Lee (kevinlee@koreabizwire.com)
