Sales of compact cars in S. Korea up 34.5 % due to sky-high gasoline prices

With record-setting gasoline prices, compact cars are regaining popularity in South Korea, with sales by the nation’s five major carmakers reaching 30,189 units in the first quarter of this year, up 34.5 percent from a year ago.

This result contrasts with a 14 popularity drop in total domestic sales of domestically produced vehicles from January to March this year.

Compact vehicles, in particular, have surpassed small SUVs in terms of sales. Small SUV sales declined 10.3 percent on year in the first quarter of this year, reaching 25,788 units.

The fundamental reason for the rise in popularity of compact automobiles is the skyrocketing price of oil.

Another thing to consider is the significant increase in space consumption. Compact cars are becoming increasingly popular as they overcome the limitations of little space.

The COVID-19 pandemic has fueled a fever of "chabak" (vehicle sleeping) and meal delivery, which has added to the popularity.

The driver's and back seats of Hyundai Motor Co.'s Casper compact SUV are both foldable. This year, Kia Corporation released the Ray, a single-seater minicar.