South Korean carmakers sold 2.1 million units in eight major markets in the first half, down 9.9 percent from 2.33 million units in the same period last year, to dip its global market share to 7.7 percent.
Their market share was 7.9 percent a year ago.
The Korea Automobile Manufacturers Association (KAMA) attributed the decline to the extended chip shortage.
The eight markets are the United States, Europe, China, India, Mexico, Brazil, Russia, and the Association of Southeast Asian Nations (ASEAN).
Sales in the US and Europe fell 18 percent and 14 percent, respectively, while sales in Brazil and Russia dropped 15 percent and 57 percent.
KAMA recommended the government and local automakers work together to deal with tougher rules on combustion engine vehicles in Europe and the US enactment of the Inflation Reduction Act (IRA), which disqualifies electric vehicles made outside the US from tax credits.