South Korea: Automobile industry experiences 13% y-o-y increase in CY'23

South Korea's automobile industry recorded 4.24 million units in CY'23, surpassing the previous year's performance of 3.75 million units in the same period, according to the Korea Automotive Mobility Industry Association. Domestic automobile production saw a significant 13% y-o-y increase in 2023, exceeding 4 million units for the first time since 2018.

Furthermore, production experienced a 4% y-o-y growth to 367,622 units in December 2023. However, this figure slightly decreased by 1% m-o-m compared to the previous month.

Surge in sales

Automobile sales in December 2023 rose by 3% y-o-y and declined by 4% m-o-m reaching 390,544 units as compared to November 2023. As of the previous year, domestic sales fell by 11% y-o-y to 143,249 units, while exports were up by 14% y-o-y to 247,295 units.

Moreover, cumulative sales of automobiles for CY'23 surged by 13% reaching 4.5 million units against 3.98 million units in CY'22.

Government plans to sustain automobile export momentum

The government will extend the temporary investment tax credit program to incentivize domestic automakers to invest in electrification technologies. This will provide much-needed financial support for the construction and operation of electric vehicle (EV) factories.

Eco-friendly Mobility Regulatory Innovation Plan

The Ministry of Trade, Industry and Energy, in collaboration with other relevant ministries, is finalizing an "eco-friendly mobility regulatory innovation plan." This plan is designed to expand the market for eco-friendly vehicles by removing regulatory hurdles and fostering a supportive environment for innovation.