Honda Korea's president and CEO, Lee Ji-hong, speaks at a press conference on April 23. [JOONGANG ILBO]
Honda, Japan's second-largest carmaker, will exit the Korean market after 23 years.
"[Honda Korea] will end the car sales business in the Korean market at the end of 2026," Lee Ji-hong, Honda Korea's president and CEO, said in a press conference in Gangnam District, southern Seoul, on Thursday. “Honda has decided to focus management resources on priority areas to preserve and strengthen its longer-term competitiveness."
"It is regrettable to end business [in Korea], but we will faithfully respond to the consumers so they do not feel uneasy," he said, adding that the automaker said it would continue after-sales support, including parts supply and warranty service, for at least eight years after sales end.
The withdrawal comes after years of weak sales in the Korean market. Honda was once one of the hottest names in Korea’s imported car market and became the first foreign brand to top 10,000 annual sales in 2008, when it sold 12,356 vehicles, including the popular compact SUV CR-V and the Accord sedan.
The 2026 Honda CR-V SUV [AMERICAN HONDA MOTOR]
Exchange rates also hurt profitability. Honda’s cars sold in Korea are imported from its Ohio plant in the United States, and the stronger dollar compared to the won eroded margins. Honda Korea cited broader changes in the business environment and currency conditions as the main factors behind the decision.
Its limited product lineup remained a weakness in Korea, as it only sold the Accord, the CR-V, the Odyssey minivan and the Pilot midsize SUV in the market.
Honda also fell behind in the EV game when it canceled the development of new models due to low expected sales figures.
The Afeela Prototype 2026 is displayed during a Sony Honda Mobility news conference ahead of CES in Las Vegas on Jan. 5. [AP/YONHAP]
With fellow Japanese automaker Nissan leaving Korea in 2020, Honda’s exit leaves Toyota as the only one of Japan’s big three still selling passenger cars in the country.
"There's now not much reason to choose Japanese cars, when local carmakers have improved technologically and there are more choices in the market," Kim Ki-chan, an emeritus professor at Catholic University, said. “Japanese carmakers were not able to divert from their analog-based production system and they were unable to adapt to the change."
Still
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Honda will keep its motorcycle business in Korea. The company entered the Korean motorcycle market in 2001, and its cumulative motorcycle sales have reached about 420,600 units while it has maintained the top market share.
"Motorcycles will remain our core business in the future," the company said. "We will introduce a wide range of products and strengthen our service."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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