Mercedes-Benz’s ‘The All-New Mercedes-Maybach SL’ (Photo courtesy of Mercedes-Benz Korea)
SEOUL, Feb. 1 (Korea Bizwire) — Sales of imported luxury cars priced over 100 million KRW (approximately $70,000) declined in South Korea for the first time in eight years, impacted by economic downturns and new regulations on corporate vehicle registration.
According to the Korea Automobile Importers & Distributors Association (KAIDA), 62,520 high-end imported vehicles were sold in 2024, marking a 20.1% drop from 78,208 units in 2023. This downturn is the first decline in this segment since 2016.
The proportion of luxury imports among total imported vehicle sales also fell, dropping from 28.9% in 2023 to 23.7% in 2024, a decline of 5.2 percentage points.
BMW Leads Despite Market Slump
Among brands, BMW led the segment, selling 24,543 units, followed by Mercedes-Benz (19,529 units) and Porsche (8,254 units). However, the most significant decline came from Bentley, with sales halving from 810 units in 2023 to 400 units in 2024, a 50.6% drop.
The New 4 Series Gran Coupé (Image courtesy of BMW Korea)
Factors Driving the Decline
The market downturn has been attributed to slowing economic conditions and regulatory changes, including a new mandate requiring corporate-owned vehicles costing over 80 million KRW to display yellow license plates.
The policy, introduced in 2024, was aimed at increasing transparency but has reportedly dampened demand among high-net-worth individuals and businesses.
Additionally, the rise of domestic luxury brand Genesis is believed to have drawn some demand away from traditional high-end imports.
An industry insider noted, “The yellow license plate requirement has had a major impact on luxury car sales. Some businesses are reportedly underreporting purchase prices to avoid the regulation, prompting an investigation by the Ministry of Land, Infrastructure, and Transport.”
With the market showing signs of contraction, industry analysts expect further shifts in high-end vehicle consumption trends in the coming years.
Kevin Lee (kevinlee@koreabizwire.com)
