Honda to Exit South Korean Automotive Market by End of 2026

[Market Exit] Honda will cease new vehicle sales in South Korea by the end of 2026, ending its 23-year passenger car business.

Core Development: 85% Sales Drop Triggers Strategic Withdrawal

In 2025, Honda sold only 1,951 new vehicles in South Korea, a staggering 85% decline from its peak of 12,356 units in 2008, with monthly sales now averaging fewer than 100 units. The company has decided to reallocate resources to priority areas and exit the highly competitive domestic market.

Strategic Underpinnings: Squeezed by Exchange Rates and Local Brands

All models currently sold—Accord, CR-V, Odyssey, and Pilot—are imported from Ohio, USA. Strengthening of the US dollar against the Korean won has significantly pressured profitability. Meanwhile, Hyundai and Kia dominate the market with high value-for-money offerings and extensive product lineups, further squeezing foreign automakers' market share.

Industry Impact: Eight-Year After-Sales Support Guaranteed; Motorcycle Business Continues

Although exiting passenger vehicle sales, Honda pledges to provide after-sales service and parts support for at least eight years. Its motorcycle business will continue operating in South Korea, with ongoing efforts to enhance customer experience.