South Korea’s Automobile Market in 2025

In 2025, South Korea’s automobile sales reached 1.68 million units, a 3.2% increase compared to the previous year. This growth was driven by factors such as a temporary reduction in the individual consumption tax rate for vehicles—lowered from 5.0% to 3.5% through December 2025—and a recovery in economic sentiment following economic measures implemented by the Lee Jae-myung administration, which took office in June 2025 to stabilize the political situation.