New and Used Car Sales Plummet in South Korea in May

South Korea's automotive market experienced a notable downturn in May 2026, with new car registrations plummeting by 22.3% compared to April. A total of 122,249 new vehicles were registered during the month, a sharp decrease from the 157,247 registered in the preceding month. This decline follows a similar downward trend observed in April, suggesting a sustained cooling of consumer demand for new vehicles.

The slump affected both domestic and imported vehicles. Registrations for domestic new cars fell by 25.1% month-on-month, while imported new car registrations saw a smaller, yet still significant, decrease of 12.2%. Industry analysts attribute this contraction to various market factors, though the specific reasons for the consecutive monthly drops are still being assessed.

This trend, analyzed monthly by 'Monthly Automobile' based on vehicle registration data from the Ministry of Land, Infrastructure, and Transport and the Korea Automobile Importers & Exporters Association, indicates a potential shift in consumer behavior or market conditions. While May's figures show a substantial drop, industry observers are looking at the broader context, including trends from March, to understand the full scope of the automotive market's performance.

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Looking only at May, new car registrations appear to have plummeted, but this is a continuation of the downward trend from March.