Korea has shown remarkable growth in auto production and sales over the last three decades. Korea ranks 10th in auto production since 2005, and Hyundai Motor and Kia Motors' combined sales stand in the global top five since 2010. Their combined sales exceeded 8 million vehicles in 2014. Korea's auto registrations passed the 20 million mark in October 2014. It is the world's 15th and the fourth in Asia following Japan, China and India.
However, Korea's driving culture is deteriorating in recent years. In particular, more and more domestic drivers are neglecting to use their turn signals when they change lanes or make a right or left. We attribute this trend to the growing popularity of high-function imported cars, powerful SUVs and luxury sedans. Above all, a lack of consideration for other people should be blamed for the phenomenon.
The neglect to use a signal is resulting in car accidents. In addition, many drivers have to wait at intersections because they are not sure about the future direction of the vehicles coming from the other directions. So, it causes a waste of time and fuel consumption. This lagging-behind driving level also negatively affects Korea's brand image to the growing number of foreign tourists. Korea is notorious around the world for its high traffic accident rate.
Thanks to the nationwide campaign urging motorists and passengers to buckle their seat belts, the number of traffic fatalities dropped below 5,000 in 2014. However, that is still the highest among OECD countries. According to the Ministry of Land, Infrastructure and Transport, Korea's death toll per 10,000 vehicles stood at 2.4 people in 2012, which is more than double the OECD's average of 1.1 (0.5 in U.K., 1.3 in U.S. and 0.7 in Japan and Germany). Now, about three decades have passed since the motorization period began. Korea experienced its motorization period in 1987-1994, when domestic car registrations saw more than 20 percent growth per year. In short, it is high time that Korean people improve their backward driving culture in line with the continued development of Korea's auto industry.
Suh Sung-moon
Senior analyst at Korea Investment and Securities