In 2012, South Korea's total car output declined by 2.1 percent year on year, totaling 4,558,160 units, according to a report released by the Korean Ministry of Knowledge Economy (MKE). The report says that the decrease was due to sluggish domestic demand and strikes at major automobile manufacturers. Meanwhile, in 2012 South Korea's car exports rose 0.4 percent to 3,165,689 vehicles thanks to strong demand from the United States and emerging economies in eastern Europe and Africa.
In the given year, a continued slowdown in the domestic economy coupled with a growing household debt burden reduced the number of vehicles sold in the domestic market by 2.4 percent year on year to 1,541,715 vehicles.
For the month of December, fewer working days pushed South Korea's car production and exports down 5.4 percent and 10.3 percent, respectively, both compared to December 2011. Domestic demand, however, grew 6.5 percent from a year earlier thanks to temporary tax cuts on automobile purchases and stronger promotional efforts.