China is South Korea's Second Largest Source of Imported Cars

China Likely to Surpass the U.S. as South Korea's Second Largest Source of Imported Cars for the First Time

According to South Korean media outlet Asia Business Daily, the Korea International Trade Association (KITA) released statistical data on November 29. From January to October this year, South Korea imported $1.727 billion worth of cars from China, marking a year-on-year increase of approximately 64% and exceeding last year’s total annual import value of $1.249 billion.

Currently, South Korea’s import value from the U.S. stands at $1.788 billion, only slightly ahead of that from China. Germany remains the largest source, with an import value of $4.8 billion.

China has already become South Korea’s top supplier of electric vehicles (EVs). Data from South Korea's Ministry of Trade, Industry and Energy and KITA earlier this year revealed that from January to July, South Korea's total EV imports reached $1.29 billion, a year-on-year growth of 13.5%. Among these, EV imports from China skyrocketed by 848% year-on-year to $848 million, accounting for 65.8% of South Korea's total EV imports.

In terms of import volume, China was South Korea’s third-largest source of imported cars last year, with import growth doubling to reach 26,389 units, second only to Germany and the U.S. China's market share in South Korea's imported car sector has risen from less than 2% in 2019 to about 15% today.

Tesla's Shanghai Gigafactory has played a pivotal role in China's car exports to South Korea. In October alone, Tesla sold 1,263 vehicles in South Korea, ranking fourth on the country's imported car sales list and making it the best-selling EV. Additionally, Chinese electric passenger car brands led by BYD are accelerating their expansion into the South Korean market, shifting from a previous focus on exporting commercial vehicles such as buses and trucks.

According to data from the Korea Automobile Importers and Distributors Association (KAIDA), Mercedes-Benz and BMW remain the best-selling imported car brands in South Korea, jointly accounting for nearly 60% of the market. In October, Mercedes-Benz sold 6,427 vehicles in South Korea, representing 30% of all imports, while BMW sold 6,113 vehicles, accounting for 28.77% of the market.