한국의 자동차 금융 시장 규모는 2020년 294억 2천만 달러로 평가되었으며, 2030년까지 435억 8천만 달러에 달할 것으로 예상되며, 2021년부터 2030년까지 4.1%의 CAGR로 성장할 것으로 예상된다.
코로나19 범유행 여파로 원자재 및 물류 공급 부족이 자동차 공급망에 심각한 차질을 빚고, 한국 시장에서의 신제품 출시가 지연되고 있다. 따라서 이러한 요인들로 인해 소비자들의 구매 행태가 변화하여 팬데믹 상황에서 구매 결정을 연기할 수 밖에 없었다.
자동차 금융은 금융 회사나 전문 자동차 제조업체가 제공하는 금융의 한 유형이다. 이밖에도 대출과 리스 등 다양한 금융상품이 포함돼 있어 고객이 차를 얻을 수 있다. 게다가 자동차 금융 상품과 서비스는 주로 OEM, 은행, 신용 조합, 중개인 및 기타 금융 기관을 통해 배포된다. 게다가, 자동차나 자동차 금융 서비스는 대출자들이 현금으로 완전한 지불을 하지 않고도 차량을 구입할 수 있도록 한다.
South Korea Car Finance Market Outlook – 2030
The South Korea car finance market size was valued at $29.42 Billion in 2020, and is projected to reach $43.58 Billion by 2030, growing at a CAGR of 4.1% from 2021 to 2030.
In the wake of COVID-19 pandemic, shortage in supply of raw materials and logistics has severely disrupted the supply chain of automotive and delayed new product launches in the South Korean market. Therefore, owing to these factors, the buying behavior of consumers has changed, which has forced them to postpone their buying decision during the pandemic situation.
Car finance is a type of finance provided by financing companies or specialist car manufacturers. In addition, it includes various financial products such as loans & leases, which allows customers to obtain a car. Moreover, car finance products & services are primarily distributed through original equipment manufacturers (OEMs), banks, credit unions, brokers, and other financial institutions. Furthermore, car or auto financing services allow borrowers to purchase vehicles without making complete payments in cash.
Moreover, several banks in the country have started upgrading their auto loan and financing services, aiming to go beyond their traditional business to attract mobile-first customers. For instance, KB Financial Group, the nation’s one of the leading banking group, has expanded its car financing services offered via online and mobile platforms, mostly through its leasing and installment financing unit KB Capital. In addition, KB Capital signed a deal with Volvo’s electric vehicle brand Polestar that allows customers to choose the type of car and financing they want on the same online platform. The fast and easy service takes just 60 seconds to complete and marks the first of its kind between an automaker and a financial institution in South Korea. Therefore, these are some of the major South Korea car finance market trends.
The report focuses on growth prospects, restraints, and trends of the South Korea car finance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the South Korea car finance industry.
The South Korea car finance market is segmented on the basis of distribution channel, vehicle age, application, purpose and region. In terms of distribution channel, it is segmented into banks, original equipment manufacturers (OEMs), credit unions, and others which includes financing institutions and auto finance companies (AFCs). On the basis of vehicle age, it is segmented into new vehicles and used vehicles. Based on application, it is divided into personal and commercial. In terms of purpose, it is bifurcated into loans and lease.
The key players profiled in the South Korea car finance industry are Bank of America Corporation, BMW Group Financial Services Korea, Mitsubishi HC Capital Inc., Hyundai Capital Services, Inc., IBK (Industrial Bank of Korea), Renault Finance, RCI Financial Services, SHINHAN FINANCIAL GROUP, Toyota Financial Services and Truist. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaboration, to enhance their market penetration.
Covid-19 Impact Analysis
The COVID-19 pandemic had a negative impact on the South Korea car finance market since the demand for purchasing new cars or used cars went drastically low pertaining to the lockdown and transportation ban in the country. Moreover, the income levels of South Koreans decreased, due to which most of the consumers postponed their plans to purchase cars during the COVID-19 pandemic. Therefore, these factors led to a decrease in demand for car finance in South Korea. Thus, the COVID-19 pandemic had a negative impact on the South Korea car finance market.
Top Impacting Factors
Growth in Average Price of Vehicles in South Korea
Rise in massive demand for new car models and branded cars in South Korea has become one of the major growth factors in the market. As consumer trends and preferences toward car purchases have increased tremendously, demand for car financing & loans is expected to rise and is expected to maintain its dominance in the market. Therefore, with rise in demand for cars, the average price of vehicles in South Korea has increased simultaneously. Thus, massive rise in vehicle prices urge consumers to switch from direct purchases to auto financing in the market. For instance, Hyundai Motor Co.'s average sales price for its vehicles has increased sharply in South Korea over a span of one-and-a-half years during 2020. The average sales price (ASP) of Hyundai vehicles in South Korea was 33.4 million won ($28,100) as of the second quarter of the year, which increased by 19.3% from 29.2 million won in 2018. As a result, these huge prices imposed over average price of vehicles are anticipated to boost growth of the South Korea car finance market outlook.
Rise in Ridesharing Services
Rise in alternative solutions to travel by car hampers the South Korea car finance market growth. Cab services in South Korea is growing rapidly and public transport of South Korea is also majorly considered as a mode of transport for citizens. In addition, availability of cabs, busses and metros have reduced the demand for purchasing new cars. Moreover, South Koreans mostly prefer to walk instead of driving personal vehicles, as they are more environmental conscious. Therefore, auto financing companies & commercial vehicle loan providers have limited demand for car finance in the country. Therefore, rise in ridesharing services is a major factor hampering the growth of South Korea car finance market.
Improvement in the Standard of Living of South Koreans
The standard of living of South Koreans is higher as compared to other countries citizens as the per capita income of the citizens is higher. Therefore, for a better lifestyle, consumers have increased demand for luxurious cars. Moreover, South Korea is an expensive country. Indeed, the capital Seoul frequently ranks as one of the world's most expensive cities to live in. In 2021, Seoul ranked 11th out of 209 cities in the Mercer Cost of Living Survey. Therefore, to afford the standard of living and purchase cars, which is considered as a basic necessity, consumers are taking quick car finance options for purchasing cars. Thus, these factors will provide major lucrative opportunities for the growth of the South Korea car finance market.
Key Benefits for Stakeholders
The study provides in-depth analysis of the South Korea car finance market share along with current & future trends to illustrate the imminent investment pockets.
Information about key drivers, restrains, & opportunities and their impact analysis on the South Korea car finance market size are provided in the report.
Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the South Korea car finance market.
An extensive analysis of the key segments of the industry helps to understand the South Korea car finance market forecast period.
The quantitative analysis of the South Korea car finance market from 2021 to 2030 is provided to determine the market potential.
Key Market Segments
By Distribution Channel
By Vehicle Age
Rest of Europe
Rest of Asia-Pacific
By Key Market Players
Bank of America Corporation
BMW Group Financial Services Korea
Mitsubishi HC Capital Inc.
Hyundai Capital Services, Inc.
IBK (Industrial Bank of Korea)
RCI Financial Services
SHINHAN FINANCIAL GROUP
Toyota Financial Services
Table of Contents
1.2.Key benefits for stakeholders
1.3.Key market segments
1.4.3.Analyst tools & models
CHAPTER 2:EXECUTIVE SUMMARY
2.1.Top impacting factors
2.1.1.Top investment pockets
CHAPTER 3:MARKET OVERVIEW
3.1.Market definition and scope
3.2.Key forces shaping south Korea car finance market
3.2.1.Low bargaining power of suppliers
3.2.2.Moderate bargaining power of buyer
3.2.3.Moderate threat of substitutes
3.2.4.Moderate threat of new entrants
3.2.5.High competitive rivalry
220.127.116.11.Growth in average price of vehicles in South Korea
18.104.22.168.Rise in demand for vehicles among consumers
22.214.171.124.Rise in ridesharing services
126.96.36.199.Increase in debts from various borrowers
188.8.131.52.Implementation of technologies in existing product lines
184.108.40.206.Improvement in the standard of living of South Koreans
3.4.COVID-19 impact analysis on South Korea car finance market
3.4.1.Impact on South Korea car finance industry
3.4.2.Impact on South Korea car finance market size
3.4.3.Change in consumer trends, preferences, and budget impact due to COVID-19
3.4.4.Framework for solving market challenges faced by South Korea car finance providers and customers in the market
3.4.5.Economic impact on car finance companies in South Korea
3.4.6.Key player strategies to tackle negative impact in the industry
3.4.7.Opportunity analysis for car finance providers in South Korea
CHAPTER 4:SOUTH KOREA CAR FINANCE MARKET, BY DISTRIBUTION CHANNEL
4.2.1.Key market trends, growth factors, and opportunities
4.2.2.Market size and forecast, by country
4.3.1.Key market trends, growth factors, and opportunities
4.3.2.Market size and forecast, by country
4.4.1.Key market trends, growth factors, and opportunities
4.4.2.Market size and forecast, by country
4.5.1.Key market trends, growth factors, and opportunities
4.5.2.Market size and forecast, by country
CHAPTER 5:SOUTH KOREA CAR FINANCE MARKET, BY VEHICLE AGE
5.2.1.Key market trends, growth factors, and opportunities
5.2.2.Market size and forecast, by country
5.3.1.Key market trends, growth factors, and opportunities
5.3.2.Market size and forecast, by country
CHAPTER 6:SOUTH KOREA CAR FINANCE MARKET, BY APPLICATION
6.2.1.Key market trends, growth factors, and opportunities
6.2.2.Market size and forecast, by country
6.3.1.Key market trends, growth factors, and opportunities
6.3.2.Market size and forecast, by country
CHAPTER 7:CAR FINANCE MARKET, BY PURPOSE
7.2.1.Key market trends, growth factors, and opportunities
7.2.2.Market size and forecast, by country
7.3.1.Key market trends, growth factors, and opportunities
7.3.2.Market size and forecast, by country
CHAPTER 8:COMPETITIVE LANDSCAPE
8.1.1.Market player positioning, 2020
8.2.1.Top winning strategies
CHAPTER 9:COMPANY PROFILES
9.1.BANK OF AMERICA CORPORATION
9.1.3.Operating business segments
9.1.6.Key strategic moves and developments
9.2.BMW GROUP FINANCIAL SERVICES KOREA
9.3.MITSUBISHI HC CAPITAL INC.
9.3.4.Key strategic moves and developments
9.4.HYUNDAI CAPITAL SERVICES, INC.
9.5.IBK (INDUSTRIAL BANK OF KOREA)
9.6.4.Key strategic moves and developments
9.7.RCI FINANCIAL SERVICES
9.7.4.Key strategic moves and developments
9.8.SHINHAN FINANCIAL GROUP
9.8.5.Key strategic moves and developments
9.9.TOYOTA FINANCIAL SERVICES
9.9.3.Operating business segments
9.9.6.Key strategic moves and developments
9.10.5.Key strategic moves and developments
LIST OF TABLES
TABLE 01.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY DISTRIBUTION CHANNEL, 2021-2030 ($MILLION)
TABLE 02.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR BANKS, 2021–2030 ($MILLION)
TABLE 03.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR OEMS, 2021–2030 ($MILLION)
TABLE 04.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR CREDIT UNIONS, 2021-2030($MILLION)
TABLE 05.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR OTHERS, 2021-2030($MILLION)
TABLE 06.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY VEHICLE AGE, 2021-2030 ($MILLION)
TABLE 07.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR NEW VEHICLES, 2021-2030($MILLION)
TABLE 08.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR USED VEHICLES, 2021–2030 ($MILLION)
TABLE 09.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY APPLICATION, 2021-2030 ($MILLION)
TABLE 10.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR PERSONAL, 2021-2030($MILLION)
TABLE 11.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR COMMERCIAL, 2021-2030($MILLION)
TABLE 12.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY PURPOSE, 2021-2030 ($MILLION)
TABLE 13.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR LOANS, 2021-2030($MILLION)
TABLE 14.SOUTH KOREA CAR FINANCE MARKET REVENUE FOR LEASE, 2021-2030($MILLION)
TABLE 15.BANK OF AMERICA CORPORATION: COMPANY SNAPSHOT
TABLE 16.BANK OF AMERICA CORPORATION: OPERATING SEGMENTS
TABLE 17.BANK OF AMERICA CORPORATION: PRODUCT PORTFOLIO
TABLE 18.BMW FINANCIAL SERVICES KOREA CO., LTD.: COMPANY SNAPSHOT
TABLE 19.BMW FINANCIAL SERVICES KOREA CO., LTD: PRODUCT PORTFOLIO
TABLE 20.MITSUBISHI HC CAPITAL INC.: COMPANY SNAPSHOT
TABLE 21.MITSUBISHI HC CAPITAL INC.: PRODUCT PORTFOLIO
TABLE 22.HYUNDAI CAPITAL SERVICES, INC.: COMPANY SNAPSHOT
TABLE 23.HYUNDAI CAPITAL SERVICES, INC.: PRODUCT PORTFOLIO
TABLE 24.IBK (INDUSTRIAL BANK OF KOREA): COMPANY SNAPSHOT
TABLE 25.IBK (INDUSTRIAL BANK OF KOREA): PRODUCT PORTFOLIO
TABLE 26.RENAULT FINANCE: COMPANY SNAPSHOT
TABLE 27.RENAULT FINANCE: PRODUCT PORTFOLIO
TABLE 28.RCI FINANCIAL SERVICES: COMPANY SNAPSHOT
TABLE 29.RCI FINANCIAL SERVICES: PRODUCT PORTFOLIO
TABLE 30.SHINHAN FINANCIAL GROUP: COMPANY SNAPSHOT
TABLE 31.SHINHAN FINANCIAL GROUP: PRODUCT PORTFOLIO
TABLE 32.TOYOTA FINANCIAL SERVICES: COMPANY SNAPSHOT
TABLE 33.TOYOTA FINANCIAL SERVICES: OPERATING SEGMENTS
TABLE 34.TOYOTA FINANCIAL SERVICES: PRODUCT PORTFOLIO
TABLE 35.TRUIST: COMPANY SNAPSHOT
TABLE 36.TRUIST: PRODUCT PORTFOLIO
LIST OF FIGURES
FIGURE 01.KEY MARKET SEGMENTS
FIGURE 02.SOUTH KOREA CAR FINANCE MARKET, 2020–2030
FIGURE 03.TOP IMPACTING FACTORS
FIGURE 04.TOP INVESTMENT POCKETS
FIGURE 05.MARKET DYNAMICS: SOUTH KOREA CAR FINANCE MARKET
FIGURE 06.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY DISTRIBUTION CHANNEL, 2021–2030 ($MILLION)
FIGURE 07.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY VEHICLE AGE, 2021-2030($MILLION)
FIGURE 08.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY APPLICATION, 2021-2030($MILLION)
FIGURE 09.SOUTH KOREA CAR FINANCE MARKET REVENUE, BY PURPOSE, 2021-2030($MILLION)
FIGURE 10.MARKET PLAYER POSITIONING, 2020
FIGURE 11.COMPETITIVE DASHBOARD
FIGURE 12.COMPETITIVE DASHBOARD
FIGURE 13.COMPETITIVE HEATMAP OF KEY PLAYERS
FIGURE 14.TOP WINNING STRATEGIES, BY YEAR, 2019–2021
FIGURE 15.TOP WINNING STRATEGIES, BY DEVELOPMENT, 2019–2021
FIGURE 16.TOP WINNING STRATEGIES, BY COMPANY, 2019–2021
FIGURE 17.BANK OF AMERICA CORPORATION: REVENUE, 2019–2021 ($MILLION)
FIGURE 18.BANK OF AMERICA CORPORATION: REVENUE SHARE, BY REGION, 2021 (%)
FIGURE 19.HYUNDAI CAPITAL SERVICES, INC.: NET REVENUE, 2019–2021 ($MILLION)
FIGURE 20.SHINHAN FINANCIAL GROUP: NET INCOME, 2018–2020 ($MILLION)
FIGURE 21.TOYOTA FINANCIAL SERVICES: NET REVENUE, 2018–2020 ($MILLION)
FIGURE 22.TOYOTA FINANCIAL SERVICES: REVENUE SHARE, BY SEGMENT (2020)
FIGURE 23.TRUIST: NET REVENUE, 2019–2021 ($MILLION)