“From 40 Hours to 15 Minutes”: Two Korean Startups Aim to Disrupt the Automotive Market

By redefining car transactions through digital innovation

#1.
U.S.based online used car marketplace Carvana was once dubbed “the Amazon of the automotive market.”
Listed on the Nasdaq, its shares peaked at USD 360 in 2021, pushing its market capitalization to nearly KRW 40 trillion. Founded in 2012 by Stanford University graduate Ernest Garcia at the age of 30, Carvana transformed used-car transactions by enabling customers to browse, purchase, and complete transactions seamlessly through a smartphone application.

#2.
Founded by Anthony Tan (41) and Tan Hooi Ling (39) who met while studying at Harvard University Grab has become known as “Southeast Asia’s Uber.” When it went public on Nasdaq in 2021, the company was valued at approximately KRW 52 trillion.
By analyzing massive volumes of app generated data, Grab can detect speeding vehicles and even identify inappropriate driver communications in real time.

Inspired by companies such as Carvana and Grab, a new generation of Korean entrepreneurs in their 30s is seeking to reshape the automotive market using digital technology. Their approach centers on integrating big data analytics into new- and used-car platforms while simplifying complex loan and transaction processes making vehicle purchases faster, more transparent, and more accurate for consumers.

Recently, Han Bosuk (39), CEO of EPIKAR, and Ahn Inseong (35), CEO of Handle, shared their visions in separate interviews.

Automotive Startups Founded by the MZ Generation

Both companies have established offices in areas popular among young professionals, including Seoul’s Magok district and the Gangnam Station area.

EPIKAR provides dealerships with data driven insights such as real-time vehicle sales performance, test-drive programs, and financing status helping sales consultants communicate complex information more effectively to customers. The company was recently selected for a Google-supported startup program.

Under the program, Google will provide EPIKAR with up to USD 100,000 in cloud credits during the first year, followed by additional support covering 20% of usage costs in the second year, capped at USD 100,000.

“As the automotive industry transitions into the electric-vehicle era, data volume has increased dramatically ranging from battery usage metrics to autonomous driving sensor data,” Han said.
“Using Google Cloud allows us to analyze this data more efficiently through artificial intelligence and machine learning.”

Han studied mechanical engineering at Hanyang University before completing his master’s degree at the University of Michigan. He later worked as a big data specialist at BMW Korea, before founding EPIKAR in 2016.

During his time in the U.S., he shared a small apartment with three other students to save money.
“Living in Detroit the heart of the global automotive industry allowed me to see firsthand how startups were reshaping traditional car manufacturing and distribution,” he recalled.

Currently, EPIKAR focuses on B2B solutions for new car dealerships, primarily within the BMW network. However, the company plans to export its platform overseas and gradually expand into B2C automotive services.

“The average age of new-car buyers is steadily decreasing,” Han noted.
“Even when purchasing luxury products, today’s consumers carefully compare options online. That generation is becoming the core automotive customer base.”

“Hyundai Motor Group’s Entry Is a Positive Signal for the Used Car Market”

Founded in 2019, Handle, which operates the used car platform Carmers, has rapidly gained market traction through fast transactions and an unconditional refund policy.

Traditionally, salaried workers purchasing used vehicles needed to take a full day off to prepare loan documents and wait for approvals. With Carmers, the entire process can be completed within a lunch break.

“We reduced the average used car purchase time from 40 hours to just 15 minutes,” said CEO Ahn.

Handle achieved this by acquiring a licensed loan brokerage entity, securing patents to block fraudulent vehicle listings, and forming partnerships with financial institutions.

Ahn, who majored in economics at Cornell University, previously founded an e-commerce startup in the United States. His business philosophy has consistently focused on digitizing offline processes and eliminating unnecessary steps to reduce cost and friction.

Most recently, Handle received approximately KRW 3 billion (USD 2.3 million) in investment from Hankook Tire & Technology.

“By leveraging Handle’s online native technology, we expect to identify new areas of co-growth with tire manufacturers,” Ahn said.

Meanwhile, major automakers such as Hyundai Motor Group are preparing to enter Korea’s used car market in earnest this year.

“Compared to the U.S. and Germany, used car sales volume relative to new-car sales remains low in Korea,” Ahn explained.
“As large corporations expand the market, opportunities for digital innovation will increase ultimately benefiting startups like Handle rather than threatening them.”