“A pilot project in January next year…Starting business by supplying certified used cars from May”
KAMA expressed regret that “consumer aspirations are ignored…the worst regulation is entry regulation”
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(Seoul = Yonhap News) Reporter Park Seong-min = Hyundai Motor Company[005380]and hunger[000270]The Ministry of SMEs and Startups held a SME business adjustment deliberative meeting on the 28th to recommend that conglomerates enter the used car market be deferred for one year until May of next year.
According to the recommendation of the Ministry of SMEs and Startups, Hyundai Motor and Kia plan to start a pilot project in January next year and supply certified premium cars to consumers in earnest in May of the same year.
Hyundai Motor and Kia said in their position data that the adjustment result of the Ministry of SMEs and Startups was “a rather disappointing result considering the consumers who desperately want changes in the used car market.”
“In particular, the recommendation of a one-year suspension of business start-up is the most disappointing part because consumers who expect reliable, high-quality used cars and a transparent and objective transaction environment provided by the auto industry are not sufficiently considered.”
Hyundai Motor and Kia said, “We plan to follow the recommendations from the standpoint of succession and promote the used car business with the goal of increasing the rights and interests of used car consumers, quantitative and qualitative development of the used car market, and coexistence with the existing used car industry.”
Hyundai Motor Company and Kia Motors will also enter the market in stages by setting market share caps for each year for win-win cooperation and mutual development with the used car industry.
In addition, he promised to contribute to solving the monopoly of information and enhancing the transparency of the used car market by establishing an integrated used car information open system that collects and analyzes used car-related information from various sources and provides them comprehensively.
(Seoul = Yonhap News) Reporter Ryu Young-seok = Vehicles are parked at the Janganpyeong Used Car Sales Market in Seoul on the afternoon of the 28th, when a small and medium-sized business adjustment committee was held for Hyundai Motor and Kia to advance into the used car market. 2022.4.28 ondol@yna.co.kr
Hyundai Motor Company and Kia Motors, which were preparing for an immediate business start by disclosing the direction of their used car business last month and this month, said they would accept it, while the Korea Automobile Manufacturers Association (KAMA), an organization of domestic automakers, expressed regret and opposed the decision of the Ministry of SMEs and Startups. .
In a press release, KAMA said, “It is a decision that does not meet the needs of consumers and the need to resolve reverse discrimination with imported cars.” In addition to setting a one-year grace period, and limiting the accumulation and sales ceilings during the trial project, KAMA not only ignores the consumer’s desire for advancement, but also As a finished car maker, it has been subjected to discriminatory regulations for a considerable period of time compared to platform conglomerates and imported car makers.”
KAMA continued, “The worst regulation is entry regulation that restricts creativity, innovation and competition. Using this case as an opportunity, the government functions to ensure free market entry for companies while strengthening the market supervision function of the Fair Trade Commission for unfair practices. We need to fundamentally review the adjustment.”
In addition, referring to the fact that in the past, the unique industry system of SMEs weakened the competitiveness of SMEs and produced the side effect of foreign companies eroding the domestic market, he said, “If entry regulations are implemented, consumers will lose quality products and services due to lack of competition and delayed innovation. Not only will they not be able to receive supplies, but they may also suffer damage, and side effects such as concerns about trade disputes and reverse discrimination against domestic products are great,” he emphasized.
“Government intervention in a market economy should not exclude competition at all, but should be done in a way that enhances market vitality and innovation by promoting competition,” KAMA Chairman Man-ki Jeong said.
min22@yna.co.kr
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