South Korea’s Ultra-Premium Car Sales Top Mid-Range for First Time

In South Korea’s imported car market, sales of ultra-premium vehicles priced at 150 million Korean won or more have surpassed those in the 100 million to under 150 million won range for the first time. This shift is driven by growing demand among 3040 “Young Rich” for top-tier family-oriented SUVs and high-performance vehicles. Analysts suggest the trend reflects deepening market polarization, as only affluent consumers with significant purchasing power continue to spend amid a prolonged economic downturn.

According to the Korea Import Car Association on the 9th, sales of imported cars priced at 150 million won or more surged 44% year-on-year to 26,910 units in the first nine months of this year. Conversely, sales of vehicles priced between 100 million and 150 million won fell 10% to 24,365 units during the same period. This reversal marks the first such occurrence since the association began compiling statistics in 2003. In price-tier rankings, cars over 150 million won rose from fourth to third place last year and recorded the fastest sales growth across all price categories.

 

Ultra-premium imported cars were traditionally purchased as company vehicles by small business owners, self-employed individuals, and high-income professionals seeking tax benefits. However, the market has shifted as personal purchases by the 3040 generation have surged. This year, personal buyers accounted for 36% of ultra-premium imported car sales—double the 18% share from five years ago. Notably, the 3040 demographic now represents 59% of personal purchases, a 10 percentage point increase over the same period.

As the primary consumer base has grown younger, popular imported models have also changed. The BMW X7, a large SUV, was the top-selling ultra-premium imported car this year. The market, once dominated by luxury sedans like the Mercedes-Benz S-Class and BMW 7 Series emphasizing quietness and sophistication, has shifted toward family-friendly SUVs suited for outdoor activities.

Industry observers view this trend as a sign of market polarization. “As the economic slump persists, the middle class has begun tightening their wallets first, while affluent consumers with purchasing power continue to buy vehicles,” said a source from the industry.