Honda to End Car Sales in South Korea by Year-End

Honda Motor Co. announced Thursday that it will cease automobile sales in South Korea by the end of this year, marking the end of its two-decade presence in the country's fiercely competitive auto market dominated by local giants like Hyundai Motor Co. and Kia Corp.

The Japanese automaker, the world's second-largest by volume, cited sluggish sales, intensifying competition from domestic brands, evolving global market conditions and exchange rate pressures as key factors behind the decision. Honda entered the South Korean auto market in 2004, importing models such as the Accord sedan and CR-V sport utility vehicle from overseas production sites. Sales peaked at around 12,000 units in 2008 but have since declined sharply, dropping to approximately 2,000 vehicles last year amid the rise of affordable local offerings and shifting consumer preferences.

"We have carefully reviewed our business direction in light of changing market conditions and exchange rate fluctuations," said Lee Jihong, chief executive of Honda Korea, during a press conference in Seoul. The company emphasized that the exit stems from a strategic need to reallocate resources to more promising areas, ensuring...