Lee Ji-hong, CEO of Honda Korea, told a hastily convened press conference on Thursday at COEX in Seoul that the decision came after a thorough review of shifting market conditions and persistent currency headwinds.
"We have comprehensively considered changes in the business environment and exchange rate fluctuations, and will terminate automobile sales operations in Korea by the end of 2026," Lee said.
The retreat marks a stark reversal for a brand that in 2008 became the first import nameplate to sell more than 10,000 vehicles in a single year in South Korea. Annual sales have since cratered — from about 8,760 units in 2019 to 1,951 in 2025 — battered by what industry experts say is a relatively small portfolio strictly tied to internal combustion and hybrid powertrains in a market increasingly gravitating toward electrified alternatives.
In February this year, Honda registered just 23 new vehicles, its lowest monthly tally on record and a mere 0.08 percent of all imported car registrations.
Honda's Korean pullback comes as its Tokyo-based parent braces for potentially its first annual net loss since going public in 1957.
Honda Motor said in March it expects to record losses of up to 2.5 trillion yen ($15.6 billion) in the fiscal year ending March 2026, driven by massive write-downs on scrapped electric vehicle programs in North America and deepening losses in China, where local EV makers have seized market share.
The automaker has cancelled three battery-electric models that were months from production at its Ohio plant and slashed its global 2030 EV sales target from 30 percent to 20 percent.
Honda Korea said it will continue to sell motorcycles and aim to strengthen product appeal, customer service and experiential marketing in the two-wheeler business going forward.
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