Car Sales Expose Widening Gap Between Rich and Poor

Car sales in Korea this past year mirrored the country's growing income disparity. Sales of applied cars, which are generally bought by low-income earners, rose to an archive, but so do sales of luxury vehicles (US$1=W1,119).

Relating to website Carisyou.com, which analyzes data from the Ministry of Land, Infrastructure and Transport, used-car registrations in 2020 increased seven percent to 3.95 million. The most popular was Hyundai's Porter pickup, which is commonly used by small businesses, accompanied by Kia's Morning subcompact and Bongo pickup.

But sales of their latest versions have been declining steadily, showing how heavily small businesses were hit by the coronavirus lockdown. One industry insider explained, "People who get one-ton mini trucks just like the Porter or Bongo are usually delivery workers or small businesses like florists. It's likely that distressed companies have been offering their trucks and business office workers who shed their jobs are obtaining them to start their own business."

The Morning subcompact is a favorite starter car for teenagers, and today they have little money they are buying it second-hand.

But luxury cars accounted for an archive 15.7 percent of the imported car market this past year. Sales of ultra-expensive luxury cars increased 1.5 times to 43,158 in comparison to 2019.

Revenue of Porsches, which cost over W100 million, almost doubled to an archive 7,779 and surpassed Fords, Toyotas and Land Rovers to rank within the most notable 10 imported brands for the first time.

One import-car dealer said, "Mercedes, BMWs and other luxury sedans have grown to be so common now that an increasing number of discerning customers opt for Porsches."

Product sales of supercars costing between W300 million and W500 million each also boomed. Bentley's revenue surged 129.5 percent to 296, Lamborghini's 75.1 percent to 303 and Rolls- Royce’s 6.1 percent to 171.