South Korea
South Korea, officially the Republic of Korea is a sovereign state in East Asia.
Chapter 1: Economic and business environment
| Demographics | 25.155.320 people |
|---|---|
| Capital | Seoul |
| Major cities | Busan, Incheon, Daegu |
| Languages | Korean (ko-KR), English (en) |
| GDP | 27,221.52 USD (2015) |
| Unemployment rate | 4,9% in 2016 |
| Main industries | GDP Composition by Sector: Industrial Production Growth Rate: 4.3 percent |
| Currency | KRW South Korean won |
| Interest rate | 2% |
| Inflation | 2% in 2017 |
Chapter 2 : Automotive market, segments & sales
| Total Car park | 459 cars per 1000 inhabitants |
|---|---|
| New vehicle registrations (Cars, LCV, Trucks) | New Car Sales 2015 : 1,725,387 |
| Top 5 brands (total market) | 1. Hyundai |
Chapter 3: Company car market
| Total Fleet Park (company cars)/Fleet penetration in total fleet sales | The business car sector in South Korea represents about 10% of the total automotive market. Around 350.000 vehicles were sold as commercial vehicles in 2016. * |
|---|---|
| Top 5 fleet brands (fleet market) | The Korean car manufacturers Hyundai-Kia represents 70% of the market share. |
Chapter 4: Taxation & legislation
| 4.1 Car Taxation | Vehicles are submitted to various taxations : Individual Consumption Tax, Education Tax, VAT, Acquisition Tax, Transportation-Energy-Environment Tax, Motor Fuel Tax |
| 4.2 Income tax – Taxable persons | Any person who has registered a vehicle is obliged to file taxes. Tax deduction is granted under conditions |
| 4.3 Company car | |
| 4.4 Income taxes – drivers’ personal taxation | If an employee uses a company car for his own purpose, the cost incurred related to the car shall be regarded as additional remuneration for the employee and individual income tax will be imposed. |
| 4.5 Electric vehicles | |
| 4.6 Future developments | Company car deductions are to be improved |
| 4.7 Legal background (import taxes) | Imported vehicles are submitted to both Custom Duty and Import VAT. In addition, Individual Consumption Tax is applicable |
Chapter 5: Car policies
Company Car Entitlement
Company cars are assigned to top management as part of their compensation package or as a tool of the trade for corporate sales people.
Which sectors provide most fleet cars?
Which job functions often include a company car?
Reference cars
| Entry level/ Junior sales | na |
| Senior sales / management level | Hyundai Sonata K5 Hyundai Avante Kia Sorrento |
| S-Class |
