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Honda to take off ramp from Korean auto market after 23 years

Published: 23 Apr. 2026, 18:56 Updated: 24 Apr. 2026, 15:34

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 auto market after 23 years, keeping only its motorcycle business in the country.

“[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 managerial 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 would continue any after-sales support, including parts supply and warranty service, for at least eight years.

The withdrawal comes after years of weak sales in the Korean market. Honda was once one of the most popular 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.

Honda Korea cited broader changes in the business environment and currency conditions as the main factors behind the decision, possibly referring to exchange rates. Honda cars sold in Korea are imported from its Ohio plant in the United States, and the stronger dollar compared to the won likely eroded margins.

Its limited product lineup in Korea has also been a weakness, as it only sold the Accord, CR-V, Odyssey minivan and Pilot midsize SUV in the market.

Additionally, Honda 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 2026 in Las Vegas on Jan. 5. [AP/YONHAP]

With fellow Japanese automaker Nissan having left the Korean market 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 since 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 unable to divert from their analog-based production system and adapt to the change.”

Still , Honda will keep its motorcycle business in Korea. The company entered the Korean motorcycle market in 2001. It has maintained top market share, with its cumulative motorcycle sales reaching approximately 420,600 units.

“Motorcycles will remain our core business [in Korea] in the future,” the company said. “We will introduce a wide range of products and strengthen our service.”

The 2026 Honda CR-V SUV [AMERICAN HONDA MOTOR]

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.
BY NAM YOON-SEO, LEE SU-JEONG [[email protected]]