Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Luxury vehicles drive growth of Korea’s imported car market
The exterior of the Maybach Brand Center Seoul / Courtesy of Mercedes-Benz Korea
By Lee Min-hyung
Mercedes, BMW expand investment for super-luxury auto market in Korea
Luxury vehicles priced at more than 100 million won ($71,700) drove the overall growth of Korea’s imported car market in the first half of 2025, as foreign premium brands expanded their pricey lineups to capture growing demand, according to industry officials Monday.
This marks a major rebound following two consecutive years of negative growth in the nation’s imported car market in 2023 and 2024.
According to data from the Korea Automobile Importers & Distributors Association (KAIDA), sales of imported cars increased 9.9 percent between January and June from a year earlier.
This was driven by robust demand for high-end luxury cars, whose sales surged by 15 percent during the same period. Their share of the total imported vehicle market also increased by 1.1 percent to 24.3 percent.
The significant sales growth of luxury vehicles has been led by premium brands expanding their lineups of high-priced models.
“Premium brands, such as Mercedes-Benz, BMW and Audi are on track to launch higher-end lineups and expand their investment in customers with strong purchasing power,” an official from the industry said.
Last week, Mercedes-Maybach, one of the most high-end luxury auto brands in the world, opened the world’s first brand showroom in Seoul in a move to widen sales of its super-luxury models.
BMW 7 Series / Courtesy of BMW Korea
BMW Korea is also going all out to boost sales of its high-end models, such as the 7 Series sedan and XM high-performance SUV, by operating a special membership program — BMW Excellence Club — exclusively for customers who purchase these luxury models.
Another data point from KAIDA showed that mid- to low-end lineups from imported brands have lost popularity here. Sales of imported cars priced below 50 million won fell by 4.7 percent during the same period. Their market share stood at just 8.1 percent in the first half.
Overseas auto brands are reducing the number of models in that price range. The number of imported auto options at that price point fell to 31 as of the end of June, compared with 82 three years earlier.
The rising vehicle quality from local auto brands also came as a major downside risk for the entry-level imported cars, according to the industry watchers.
“Customers increasingly prefer mid-sized or luxury sedans or SUVs from Hyundai Motor, Kia and Genesis to small cars from foreign brands, as there is a growing perception among customers that the quality of Korean cars is surpassing that of entry-level foreign models,” another official from the industry said.