March 24, 2023 13:13
Hyundai and affiliate Kia start their used car business in the second half of this year.
At a shareholders' meeting at headquarters in Seoul on Thursday, Hyundai added automotive brokerage services to its list of businesses. Kia did the same at a shareholders' meeting last week.
Hyundai president Chang Jae-hoon pledged to provide customers with reliable second-hand cars.
Hyundai is building distribution centers in Yongin, Gyeonggi Province and Yangsan, South Gyeongsang Province, where certified technicians will make sure the cars are fit to drive.
They will only sell manufacture-certified Hyundais, Kias and Genesises less than five years old with less than 100,000 km on the clock, which undergo some 200 quality tests.
Cars can be bought on websites and apps. Customers can get a refund within the first few days if they are dissatisfied.
Kia will also set up offline used car showrooms so that customers can test-drive cars and see how they are tested.
The business used to be restricted to small and medium-sized enterprises, but the Ministry of SMEs and Start-ups eased the restrictions in March last year.
Independent used car dealers are still protesting. In a statement, the Korea Federation of Used Car Dealers Associations said, "Hyundai is a big company and is wresting the livelihoods from 300,000 small second-hand car dealers."
Hyundais and Kias accounted for a whopping 73.3 percent of second-hand cars sold in Korea last year.
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