Michelin, the world’s leading tire maker, is ramping up its efforts to expand in the South Korean market, which is largely dominated by three domestic giants. While Hankook Tire & Technology, Kumho Tire, and Nexen Tire together account for around 80 to 90% of the market, the French tire giant views South Korea as a key market for its premium products, particularly high-inch tires of 18 inches and above.
In both the replacement (RE) and original equipment (OE) tire markets, the three Korean brands lead, with Hankook holding a share in the mid-to-high 30% range, followed by Kumho in the high 20s and Nexen in the low 20s.
Foreign tire brands hold strong positions globally—Michelin ranks first, Bridgestone second, and Continental fourth as of 2024. But in South Korea, imported brands account for just 10 to 20% of the market. Michelin leads among them locally but remains below 10%, while Continental, Pirelli, and Bridgestone each maintain single-digit shares.
The dominance of Korean brands makes it challenging for foreign companies, but Michelin continues to invest in the country, as South Korea plays a key role in its strategy to grow sales of high-inch, sports, and eco-friendly tires.
While South Korea’s overall market size is relatively small within the Asia-Pacific region, it is considered a core market for premium tire profitability. According to Michelin, demand for high-performance vehicles and sport utility vehicles (SUVs), which typically require premium tires, is higher in South Korea than in major markets like Japan, Thailand, or Vietnam, where small cars and motorcycles are more common. During visits to Korea, Michelin executives are known to visit upscale districts such as Gangnam and department store parking lots to conduct on-the-ground research.
High-inch tires cost 20 to 30% more than standard ones, making them more profitable. According to market researcher Consumer Insight, they accounted for about 54% of South Korea’s replacement tire market last year.
SUVs, which commonly use high-inch tires, are now the most popular type of vehicle in Korea. Four of the five best-selling domestic models last year were SUVs or RVs. Even in the traditionally sedan-heavy import car segment, SUV sales (127,754 units) surpassed sedan sales (126,881 units) for the first time last year.
Michelin plans to continue expanding in South Korea with a focus on premium products. Last year, it joined the O-NE Superrace, Korea’s biggest motorsports event, as an official tire supplier for the first time. Earlier this year, it launched its franchise business, opening about 30 stores nationwide under the name Tyremore, a service network based on its global Tire Plus brand. The company also plans to strengthen its online marketing, including on YouTube.
