South Korea’s Automobile Sales Results in the First Half of 2023

Automobile sales in South Korea in the first six months of 2023 increased by 10.6% from the same period of the previous year to 896,310 units. In addition to the easing of vehicle supply disruptions, sales were boosted by the reduction of individual consumption tax until June, resulting in a 10% rise from the same period last year. Sales of domestically produced cars increased by 13.5% to 759,321 units, but sales of imported cars continued to decline, going down 2.9%.

In full-year 2023, depending on the scale of negative factors, sales are either expected to drop below the previous year’s level or increase but the rate of expansion would not reach that of 2022. In the second half of 2023, the ending of the individual consumption tax reduction measure at the end of June, coupled with increases in vehicle prices and interest rates are believed to weaken sales.