South Korea Car Loan Market Size
| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 10.24 Billion |
| Market Size (2030) | USD 17.24 Billion |
| CAGR (2025 - 2030) | 10.97% |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Car Loan Market Analysis
The South Korea Car Loan Market size is estimated at USD 10.24 billion in 2025, and is expected to reach USD 17.24 billion by 2030, at a CAGR of 10.97% during the forecast period (2025-2030).
The South Korean car loan market is a significant component of the country's financial sector. It has seen steady growth over the years, driven by strong consumer demand for automobiles. As a developed economy, South Korea has a well-established automotive industry and a high rate of car ownership. Car loans in South Korea typically have various loan terms, ranging from a few years to several years. The terms can be customized to fit the borrower's needs. The South Korean government has implemented regulations to control interest rates and lending practices in the car loan market. These regulations are designed to protect consumers and ensure fair lending practices.
Many automobile manufacturers in South Korea, such as Hyundai and Kia, offer their financing options through affiliated financial companies. This allows them to provide tailored financing solutions for their vehicles. Fintech companies and online lending platforms have gained popularity, offering digital and convenient car financing solutions. This has introduced more competition and choice for consumers.
The government has provided incentives to promote the purchase of eco-friendly vehicles, including electric cars, which can influence the car loan market. The South Korean car loan market is likely to continue evolving with changing consumer preferences and government policies, particularly in response to environmental concerns and the promotion of electric vehicles.
South Korea Car Loan Market Trends
Increasing in Sales Volume of Electric Cars in South Korea
The surge in sales of electric cars is likely to drive an increased demand for loans specific to electric vehicles. Financial institutions are witnessing a rise in loan applications from consumers looking to finance their electric car purchases. Financial institutions introduced specialized loan products tailored to the unique features and needs of electric vehicles. These products could include favorable interest rates, extended repayment terms, or other incentives to encourage the adoption of electric cars. The South Korean government offers incentives and support programs to promote the adoption of electric vehicles. Financial institutions align their loan offerings with government initiatives, providing advantageous financing options for electric car buyers. The unique features of electric vehicles prompt financial institutions to invest in technology-driven loan processing.
SUV Models Occupied Major Share of Passenger Cars Segment in South Korea
The popularity of SUVs leads to a higher demand for car loans as consumers seek financing options for these larger and often more expensive vehicles. Financial institutions experience an uptick in loan applications for SUV purchases. Financial institutions introduce specialized loan products tailored to the preferences and needs of SUV buyers. These products could include features such as extended repayment terms, and competitive interest rates aimed at attracting customers interested in SUV models. The dominance of SUVs prompted financial institutions to diversify their financing options, catering to different consumer preferences within the SUV category. This could include financing solutions for compact SUVs, midsize SUVs, and luxury SUVs, each with distinct characteristics.
South Korea Car Loan Industry Overview
The competition in the South Korean car loan market is extremely fragmented. The key players are emerging to improve their products and delivery through better interest rates and enhancing their products to have a competitive edge over others. The following are prominent players in the market: Bank of America Corporation, BMW Group Financial Services Korea, Mitsubishi HC Capital Inc., Hyundai Capital Services, Inc., IBK (Industrial Bank of Korea), etc.
South Korea Car Loan Market Leaders
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Bank of America Corporation
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BMW Group Financial Services Korea
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Mitsubishi HC Capital Inc.
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Hyundai Capital Services, Inc.
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IBK (Industrial Bank of Korea)
- *Disclaimer: Major Players sorted in no particular order
South Korea Car Loan Market News
- December 2023: Mitsubishi HC Capital Inc. and AeroEdge Co., Ltd. signed a "Memorandum of Understanding to Co-Create Business" to pursue new business development, commercialization assessment, discussion related to digital transformation, and sustainable development Goals through sustainable transformation in the aviation industry
- November 2022: Renault Financial Services Korea, a firm of Renault Korea Motors, changed its name to Mobilize Financial Services, starting Nov. 1. With the new brand name, it aims to become the brand reference for Renault Korea Motors customers, offering a complete range of services related to the use of their cars.
South Korea Car Loan Industry Segmentation
A car loan is the funds that one borrows from a lender for the sole purpose of purchasing a car. Lenders like banks and non-banking financial companies (NBFCs) offer auto finance to consumers in the form of new and used car loans.
The study gives a brief description of the South Korean car loan market and includes details on interest rates, type of loans offered, and car loan products & services.
South Korea's car loan market is segmented by vehicle type, ownership, provider type, and tenure. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. By ownership, the market is segmented by new vehicles and used vehicles. By provider type, the market is segmented by banks, non-bank financial companies, car manufacturers, and other provider types (fintech companies). By tenure, the market is segmented into less than three years, 3-5 years, and more than 5 years.
The report offers market size and forecasts for the South Korean car loan market in value (USD) for all the above segments.
| Passenger Car |
| Commercial Vehicle |
| New Vehicles |
| Used Vehicles |
| Banks |
| NBFCs (Non Banking Financials Companies) |
| Car Manufacturers |
| Other Provider Types |
| Less than Three Years |
| 3-5 Years |
| More Than 5 Years |
| By Vehicle Type | Passenger Car |
| Commercial Vehicle | |
| By Ownership | New Vehicles |
| Used Vehicles | |
| By Provider Type | Banks |
| NBFCs (Non Banking Financials Companies) | |
| Car Manufacturers | |
| Other Provider Types | |
| By Tenure | Less than Three Years |
| 3-5 Years | |
| More Than 5 Years |
South Korea Car Loan Market Research FAQs
How big is the South Korea Car Loan Market?
The South Korea Car Loan Market size is expected to reach USD 10.24 billion in 2025 and grow at a CAGR of 10.97% to reach USD 17.24 billion by 2030.
What is the current South Korea Car Loan Market size?
In 2025, the South Korea Car Loan Market size is expected to reach USD 10.24 billion.
Who are the key players in South Korea Car Loan Market?
Bank of America Corporation, BMW Group Financial Services Korea, Mitsubishi HC Capital Inc., Hyundai Capital Services, Inc. and IBK (Industrial Bank of Korea) are the major companies operating in the South Korea Car Loan Market.
What years does this South Korea Car Loan Market cover, and what was the market size in 2024?
In 2024, the South Korea Car Loan Market size was estimated at USD 9.12 billion. The report covers the South Korea Car Loan Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South Korea Car Loan Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South Korea Car Loan Industry Report
Statistics for the 2025 South Korea Car Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Car Loan analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
