Imported Auto Parts
The government is going to announce a plan for promoting competition in the imported auto parts distribution market in an effort to tackle the monopolistic structure.
To this end, the government is planning to allow auto repair shops to use parallel-imported parts without restrictions, so consumers can have a wider range of choices.
At present, most car importers purchase auto parts from abroad and supply them to their sellers in Korea, and their customers have to have their cars repaired only at those directly-operated service centers, which has resulted in extremely high repair costs for consumers and insurers alike.
The government is also going to make use of the customs clearance certification of the Korea Customs Service so as to ensure the reliability of the parallel-imported parts.
Repair shops not associated with the car importers are designated as direct repair program (DRP) partners as well to address the shortage of directly managed service centers. Those shops are allowed to purchase parts from the official dealers of the importers. At the same time, the Korea Insurance Development Institute is working on a quotation program for imported cars so that the transparency of their repair costs can be enhanced.