Transparent Pricing

Business

Transparent Pricing

Trust

Our goal is to significantly reduce parts prices by improving the distribution structure of parts.

Integrated Parts Price Disclosure System

Pursuant to Article 32-2 of the Motor Vehicle Management Act (Post-Management of Self-Certified Vehicles) mandating price disclosure by vehicle manufacturers, we have developed an integrated system that enables transparent and accessible price comparisons between OEM and replacement parts for domestic and international consumers.

Institutional Roles for Promoting and Establishing Price Transparency

Ministry of Land, Infrastructure, and Transport

Define a precise method for price disclosure
Collect and manage data in file format
Perform continuous monitoring

Korea Automotive Parts Association

Publish price disclosure information on the website
Develop a comprehensive parts price database
Promote public awareness of price transparency

Vehicle Manufacturers

Submit disclosed price data to the Ministry of Land, Infrastructure, and Transport in file format
Update data provided to the Ministry of Land, Infrastructure, and Transport
Conduct public outreach initiatives

Expected Benefit

Enhanced Consumer Right to Information

By addressing the issue of part price monopolization by automakers and dealers, consumers can easily access part price information and use it for general or insurance repairs. This fulfills the consumer's right to know, enabling them to compare OEM and aftermarket part prices and make choices suited to their financial situation. As a result, consumer choice is protected, and vehicle maintenance costs can be reduced.

Reduction in Part Prices

With the disclosure of part prices, price comparisons become possible, promoting competition among OEM, aftermarket, and certified parts. This is expected to lead to lower part prices and reduced car repair costs.

Advancing the Automotive Parts Industry

The part price disclosure system allows consumers to easily compare prices of OEM, aftermarket, and certified parts, giving lesser-known SMEs a competitive edge in pricing and securing a stable market. This contributes to SME growth, promotes localization of imported car parts, and strengthens manufacturers’ brands. These efforts positively impact import substitution and export growth, invigorating the automotive parts industry.

Other

The part price disclosure system can also benefit the insurance industry, which accounts for approximately 75% of the domestic repair parts market. Insurers can accurately verify the prices of parts used in insurance repairs, reducing insurance loss ratios. This could also result in lower insurance premiums and more rationalized repair costs.