Seoul, Jan. 22 (Korea Bizwire) — Growing demand for foreign vehicles in South Korea has spilled over into the used car market, as more than one quarter of all used cars are now from foreign brands.
According to data released by used car company SK Encar last week, foreign cars traded on its website now account for 26 percent of all registered vehicles.
The market share of used foreign cars in South Korea has been on a steady increase over the last six years, from 11 percent in 2012, to 20 percent in 2016, marking the growing popularity of used cars from foreign brands.
The growing demand comes on the heels of strong domestic sales of foreign cars, as data from the Korea Automobile Importers & Distributors Association shows the number of newly registered foreign cars has jumped 78 percent since 2012.
Experts believe slower car depreciation rates and affordability are behind the popularity of used foreign cars in recent years.
“Foreign car importers have expanded certified used car sale businesses, raising trust through brand certification and warranty, which has led to an increase in the number of used car sales,” SK Encar said.
The used car market in South Korea has been growing over the last few years, reaching around 3.66 million vehicles in 2015.
“Thanks to efforts to improve market transparency and online distribution platforms, the used car market has reached 3.5 trillion won. With the number of sales and consumer trust rising, the market will continue to grow,” SK Encar said.