Chinese electric vehicle (EV) makers, led by BYD, are targeting South Korea as a key market for growth, aiming to enhance profitability in the face of fierce competition at home. The move sets up a direct challenge to South Korea’s dominant automakers, Hyundai and Kia, and presents a critical opportunity for Chinese-made EVs to improve their global reputation. Analysts believe that a successful entry into the South Korean market, where Tesla has already seen strong growth, would provide Chinese manufacturers with a platform to showcase their design and manufacturing capabilities.
BYD, the world’s largest EV assembler, plans to expand its presence in South Korea, with ambitions to double its showroom count to 30 by the end of 2025. Other Chinese automakers, including Geely Auto’s premium EV brand Zeekr and Changan Automobile’s Deepal, are also making inroads by setting up sales networks in the country, which is dominated by Hyundai and Kia. BYD’s Seal, a mid-size electric sedan, was launched last month in South Korea, priced at 47.5 million won (US$33,900). The Seal boasts ultra-fast charging technology and a driving range of 650 km, competing with Kia’s EV4 sedan, which offers a 410 km range and is priced at 41.9 million won.
Despite BYD’s domestic success, the company has set a goal to deliver 10,000 cars in South Korea this year, with less than 10 percent of its sales currently coming from international markets. Hyundai and Kia, on the other hand, hold a combined 75 percent market share in South Korea, having sold 1.2 million vehicles in 2024. Last year, EV sales in South Korea fell by 3.9 percent, while Tesla saw a remarkable 550 percent increase, selling 29,750 units.
The entry of Chinese EV brands into South Korea is seen as a stepping stone toward broader global ambitions. By capturing a significant share of the South Korean market, these companies aim to position themselves for competition in other developed automotive markets. However, Chinese car exports are expected to cool in 2025 due to trade barriers, such as tariffs from the US and EU. Despite this, Chinese automakers are recognized for their advancements in battery technology, in-car entertainment, and autonomous-driving software, providing a competitive edge in the global EV market.
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