"How can I afford a car on my meager salary?" This sentiment among young Koreans is reflected in new data showing their share of new car registrations fell to a decade low last year, while purchases by seniors continued to climb.
According to Carisyou Data Research Institute, adults in their 20s registered approximately 60,000 new passenger vehicles last year, accounting for just 5% of the total. The share, which approached double digits in 2016, has declined steadily to its lowest level in 10 years. Buyers in their 30s also saw their share drop below 20%, marking a notable decrease from previous years. Analysts say the 20-30 age group, once the core demand base for the new car market, is rapidly exiting.
Rising vehicle prices and maintenance costs are cited as primary factors behind the decline among young buyers. The spread of car-sharing services and subscription-based models has also established a consumption pattern favoring access over ownership. Those in their 20s, who predominantly live in urban areas, increasingly rely on rentals and car-sharing to meet transportation needs, factoring in fixed costs such as parking fees and insurance premiums.
In contrast, new car purchases among older demographics showed clear growth. The share of new car registrations by buyers in their 60s nearly doubled compared to 10 years ago, while those in their 70s also expanded steadily. Analysts attribute this to extended economic activity periods due to an aging population, sustaining demand for vehicles used for commuting and livelihood purposes. As more retirees continue working, the need for personal vehicles has grown.
Despite government encouragement for elderly drivers to voluntarily surrender their licenses to prevent accidents, vehicle demand among those in their 60s and 70s shows no sign of easing. The trend appears driven by a growing elderly population remaining economically active.
"Beyond the economic downturn, people in their 20s and 30s feel they don't need to own a car due to the spread of sharing culture," said Kim Pil-soo, a professor at Daelim University. "Many in their 60s and 70s are entering the job market recently and purchasing vehicles for mobility."