A system dynamics project is going on for forecasting automobile market in Korea. The project is made up of three stages, and the first stage has been wrapped up. As the first attempt, most efforts have been focused on the sound foundation rather than the exact forecast. The model consists of three sectors; the supply sector, the demand sector, and the population sector. The supply sector is a simple stock and flow diagrams representing the supply capacities of all automobile types. The major effort is made on the demand sector and the population sector. The demands are divided into three categories; replacement demands, new demands, and additional demands. The model applies “one car per person" concept, and assumes there will be no additional demands for a while. The replacement demands are calculated based on a simple stock and flow diagram. The new demands are calculated via Bass models; each bass model represents a diffusion for each age group. The population is divided into 101 age groups (age 0 to age 100). The model has been calibrated with past 10 year data (1990 - 1999), and tested for the next two years (2000-2001). The results ware acceptable, although a fine tuning is required. Now the second stage is going on, and most of efforts are made how to incorporate the economic and cultural factors.