City car sales in Korea have dropped for two consecutive months, industry data showed.
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According to the Korea Automobile Manufacturers Association, city car sales dropped by 30.7% year on year in June and 20.1% in May, the Korea Herald said.
The drop is considered to be due to the fact that the tax benefit for vehicles purchased to replace automobiles registered before 31 December, 1999 does not apply to city cars, or vehicles with engine displacements smaller than one litre.
Due to the tax cut, the price gap between city cars and some compact sedans has been reduced to as little as 1.3m won (US$1,020).
