New car purchases by young buyers fall to decade low in South Korea

New passenger car purchases by South Koreans in their 20s and 30s fell to a 10-year low in 2025, according to data released Monday. Figures from auto data tracker Carisyou showed that buyers in their 20s registered 61,962 new cars last year, accounting for 5.6 per cent of total registrations. The share has declined from 8.8 per cent in 2016 to its lowest level in a decade.

Registrations among those in their 30s totalled 209,749 units, making up 19 per cent of the total. Their share has dropped 6.9 percentage points over the past 10 years, also reaching a decade low. In contrast, purchases by older age groups rose. People in their 60s registered 204,294 vehicles, or 18.5 per cent of the total, while those in their 70s accounted for 50,861 units, or 4.6 per cent.

Industry analysts attributed the decline among younger buyers to rising costs and the growing use of app-based car rental services. Kim Pil-soo, an automotive professor at Daelim University, said many in their 20s and 30s feel less need to own a vehicle due to the expansion of online car-sharing services. He added that more people in their 60s and 70s are entering the workforce and purchasing vehicles to maintain mobility.

Separately, industry sources said Hyundai Motor Group is preparing to unveil a multi-trillion-won investment plan in reclaimed land in North Jeolla Province focused on artificial intelligence, hydrogen and robotics.