The Stagnation of Domestic Auto Sales The domestic sales of automobiles have positively
impacted the growth and development of the Korean automotive industry and served as a
safeguard against the vulnerability inherent in export dependency. Domestic sales have
increased tremendously over the years, rising from sales of only 36 thousand units in 1975
to 1,644 thousand units by 1996, an increase of 46 times. During the latter half of the 1980s
and early years of 1990, exports of automobiles have decreased markedly. In spite of the
export decline, automobile production did not decrease thanks to the sustained increase of
domestic sales. Growth of domestic sales registered a 35.7 percent annual increase for the
latter half of the 1980s. However, recently this situation has changed as the domestic market
is experiencing stagnation. The domestic sales of 1994 registered a one-digit growth rate,
while in 1995 there was no growth over the previous years. We estimate that the domestic
sales of automobiles will decrease this year. It can also be expected that dull domestic
sales of the automobile industry will continue.