Competition intensifies as Tesla gains ground in Korea

“Domestic electric vehicles are being pushed into an even smaller corner.”

The comment appeared under a viral video showing a Tesla equipped with Full Self Driving, or FSD, expertly navigating a complex roundabout in downtown Busan on its own. The intersection, where eight-lane, six-lane, and four-lane roads converge, is infamous among locals and often referred to as a driver’s graveyard.

Data from the Kaizuyu Data Research Institute released on Dec. 7 shows Tesla captured a 28.1 percent share of South Korea’s electric vehicle market from January through October, surpassing Hyundai Motor for the first time, which held 21.7 percent. The company is now rapidly closing in on Kia, the market leader with 28.6 percent. The industry was further unsettled late last month when Tesla announced the introduction of FSD in South Korea, fueling concerns that a foreign brand could seize dominance in the domestic EV market.

Chinese automakers are also moving quickly into South Korea. Zeekr, the luxury EV brand of China’s Geely Automobile, recently declared its entry into the Korean market, signing contracts with local dealerships and targeting sales in the first quarter of next year. BYD has similarly expanded its lineup in South Korea, adding mid-size sedans to follow its earlier launch of compact SUVs.

With Tesla at the forefront and foreign brands ramping up what is being called a Korea offensive, South Korean automakers, including Hyundai Motor Group, are rushing to defend their domestic market. Global EV manufacturers have singled out South Korea as a key target for next year, in part because the country’s electric vehicle subsidy budget is set to increase by 183 billion won from this year, unlike subsidy policies in the United States and China.

Hyundai Motor Group is pursuing a strategy centered on high performance and premium upgrades to regain a competitive edge. According to industry officials, Kia plans to release GT versions of the EV3, EV4, and EV5 next year. These GT models are luxury, high-performance sports variants designed for long-distance driving. Genesis is expected to introduce not only the high-performance Magma edition of the GV60, already announced, but also the GV90, a flagship luxury model developed as a signature vehicle for the group.

An industry source said the time has come for Hyundai Motor Group to unveil a new market positioning that can compete with Tesla’s autonomous driving technology and the cost-effective strategies of Chinese automakers.


최원영 기자 o0@donga.com