The Ministry of SMEs and Startups announced on the 21st that it will conclude by the end of this month on the business adjustment applied by the used car trading industry to prevent Hyundai Motor (005380) and Kia (000270) from entering the used car market.
The Ministry of SMEs and Startups released a press release on the same day and said, “We plan to hold a SME business adjustment council at the end of this month to conclude the business adjustment related to Hyundai Motor and Kia’s entry into the used car market.”
The used car trading industry previously applied for business adjustment to the Korea Federation of Small and Medium Business in January, asking Hyundai and Kia to prevent them from entering the used car market. Since then, the used car sales industry and Hyundai and Kia Motors have attempted to reach an agreement through self-adjustment, but they have still failed to narrow the gap.
The used car trading industry is demanding that large companies postpone the start of their business for up to three years and restrict their purchases and sales for up to three years after that.
Hyundai and Kia Motors say that sales volume can be limited within a certain range, but business postponement and purchase restrictions are not possible.
In response, the Ministry of SMEs and Startups decided to stop self-adjustment and hold a business adjustment council.
The Ministry of SMEs and Startups predicted, 중고차 사이트 “Considering the situation where the two sides run parallel lines, it is highly likely that a recommendation that compromises their respective positions will eventually come out.”
The Business Adjustment Council may recommend delaying the acquisition, initiation, and expansion of large companies for up to three years or reducing production items, quantities, and facilities so that small and medium-sized companies can secure business opportunities.
However, as this is a recommendation measure, it has no legal effect to forcibly block it. Large companies can enter the used car market at any time as the review committee of the used car sales business, which is under the jurisdiction of the Ministry of SMEs and Startups, dropped the used car sales business last month.