Crisis Management for a Conflict with North Korea

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Car exports set to fall for first time in five years: Sources

Joongang Ilbo | English | News | Dec. 4, 2025 | UndeterminedTrade Issues and Numbers

Korea's vehicle exports are projected to decline in 2025 for the first time in five years, with an estimated 2.71 to 2.72 million units shipped, down 2.3 to 2.6 percent from 2.78 million units in 2024. This marks the first annual drop since 2020, when exports fell sharply due to the Covid-19 pandemic. Shipments had since rebounded steadily, peaking at 2.76 million units in 2023.

The decline is mainly driven by weaker exports to the United States, Korea's largest overseas market, where shipments from January to October dropped 7.9 percent year-on-year to 1.1 million units. This follows Hyundai Motor Group's October launch of its dedicated U.S. electric vehicle plant, Metaplant America, which is expanding its capacity to meet local demand.

Despite the recent U.S. tariff reduction on Korean-made cars from 25 percent to 15 percent, tariff-related costs are still expected to negatively impact export volumes. Industry officials warn that if Hyundai raises U.S. retail prices to preserve profitability, it could dampen local consumer demand for Hyundai and Kia models, potentially leading to further export declines.

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