Global tire leader Michelin is accelerating its efforts to penetrate the South Korean market. Although three domestic tire companies—Kumho Tire, Hankook Tire & Technology, and NEXEN TIRE—dominate around 80-90% of the market, Michelin sees South Korea as a critical region for strengthening its premium products, such as high-inch tires over 18 inches.
In the domestic replacement tire (RE) and original equipment (OE) tire markets, the three companies—Hankook, Kumho, and NEXEN TIRE—hold an overwhelming market share. Hankook Tire has a market share in the mid-30s, Kumho Tire in the high 20s, and NEXEN TIRE in the low 20s.
Import tire companies, including Michelin, share a market share of about 10-20%. Michelin leads with a market share of less than 10%. Continental, Pirelli, and Bridgestone are recording single-digit market shares, contrasting with their global market positions (as of 2024, Michelin first, Bridgestone second, Continental fourth).
The market structure dominated by the three domestic tire companies is inherently disadvantageous for import brands, but Michelin has consistently focused on the South Korean market. This is because the company’s strategic emphasis on high-value tires, including high-inch, sports, and eco-friendly models, makes South Korea an important market.
South Korea is considered a key country supporting the profitability of premium products, despite having a smaller market size in the Asia-Pacific region. According to Michelin, demand for high-performance vehicles and sports utility vehicles (SUVs) in South Korea is higher than in major markets like Japan and Southeast Asia, where there is a higher proportion of compact cars and bikes. As a result, Michelin executives reportedly visit areas like Gangnam, known for its large number of SUVs and supercars, as well as major department store parking lots for market research.
High-inch tires are sold at prices 20-30% higher than regular tires, making them relatively profitable. According to data released last year by the market research firm Consumer Insight, high-inch tires of 18 inches and above accounted for approximately 54% of the domestic replacement tire market.
SUVs that commonly use high-inch tires have become the dominant vehicle type in the domestic market. Among the five best-selling domestic cars last year, four were SUVs, including recreational vehicles (RVs). In the imported car market, where sedans used to dominate, SUVs (127,754 units) surpassed sedan sales (126,881 units) for the first time last year.
Michelin plans to continue expanding its business scope in South Korea based on premium products. Last year, Michelin participated for the first time as the official tire supplier for the One Super Race, the country’s largest motorsports event, and early this year, it began its franchise operations. It launched a tire and vehicle maintenance service network called Tire More, known overseas as Tire Plus (+), and operates about 30 stores nationwide. Michelin also plans to enhance its online marketing through platforms like YouTube.