South Korea’s market decline continues in Q1 2025
By Will Pulson - 8th July 2025
South Korea - The South Korean market for commercial vehicles over 2 tons gvw declined by 13% to 41,648 units in the first quarter of 2025 from 47,744 units in the same period last year, based on data from various industry sources. The market dropped from already weak year-earlier volumes, as the country’s economy continued to weaken amid domestic political uncertainty and the impact of the recent US import tariff hikes on business confidence.
GDP contracted by 0.1% year-on-year in the first quarter of 2025, according to data released by the Bank of Korea, after growth peaked at 3.4% in the first quarter of 2024. GDP growth slowed sharply thereafter, to 2.4% in the second quarter, 1.5% in the third quarter, and 1.2% in the fourth quarter of 2024. The construction sector was among the worst hit sectors in the first quarter of 2025, with activity plunging by 12.4% year-on-year - reflecting weak investor confidence.
