South Korea – Buying or Importing a Car

How do I buy a new car in South Korea as a foreigner?

Foreign residents face no special restrictions when purchasing a new or used vehicle in South Korea. The dealership experience is broadly familiar — you select a model, discuss the price, and sign a purchase contract. South Korea has a thriving domestic automotive sector, and brands including Hyundai, Kia, and Genesis are represented at showrooms throughout every major city.

To complete a purchase, you will need an Alien Registration Card (ARC), a Korean driving licence or valid International Driving Permit (IDP), and documentation confirming your place of residence. Your foreign registration card is among the most critical documents required; if you do not yet have one, you will need at least two sponsors — typically your employers — to support the application. You will also need your passport and, at some dealerships, a certificate of residence obtained from your local district office.

The taxes payable depend on the specific vehicle. Registration tax, which must be paid within 15 days of purchase, is set at 7% of the total vehicle price. Acquisition tax amounts to 2% of the purchase price, and government bond obligations vary according to the vehicle’s model and size. Always verify prevailing tax rates with your local authority or dealership, as these may be revised.

Most financial institutions require permanent residency or a Korean co-signer before approving a car loan, which means many expats opt to pay in full or explore financing through the dealership itself. Dealer financing packages exist and are worth investigating, though those without an established Korean credit history may encounter difficulties. Employees on corporate transfers or those with diplomatic status may find it easier to use employer-facilitated purchasing arrangements.

Under Korean law, manufacturers and dealers are obliged to register vehicles at the buyer’s request. Operating an unregistered new vehicle on public roads can carry a penalty of up to two years’ imprisonment or a fine of up to 5,000,000 won. Always confirm that registration has been completed before driving the vehicle.

How do I buy a used car in South Korea?

A second-hand vehicle is a popular choice among foreign residents in Korea, offering a practical and cost-effective way to get around the country. Well-known platforms for finding used cars include Encar, K Car, and various dealerships that cater specifically to the expat community. Encar (encar.com) is the country’s largest online marketplace for pre-owned vehicles and features comprehensive listings with inspection reports, though the site is predominantly in Korean.

Expat-oriented car dealers tend to cluster around major military installations and large cities such as Seoul and Busan, and they commonly assist with both registration and insurance in English. For those who are not yet comfortable navigating Korean-language paperwork, these specialists can be an enormous help.

Before agreeing to any purchase, thoroughly investigate the vehicle’s history. Request the “차량등록증” (Vehicle Registration Certificate) to review the car’s standing and records. Prior to handing over payment, it is advisable to contact the Transportation Administration Division of the Si/Gun/Gu Office with jurisdiction over the registered owner’s address to confirm whether the vehicle is subject to seizure on account of unpaid taxes or penalties. This is conceptually similar to conducting an HPI check in the UK or a PPSR search in Australia — ensuring the vehicle carries no outstanding legal or financial encumbrances.

Once you have settled on a vehicle, the dealer will ordinarily handle the associated paperwork. For private purchases, request the Vehicle Registration Certificate to verify the car’s history and current ownership status, and cross-check the accident record and odometer reading. The CarHistory service (carhistory.or.kr), an official government-backed resource administered by the Korea Transportation Safety Authority, provides formal vehicle history reports for this purpose.

Regardless of nationality, every buyer must complete registration within 15 days of the purchase date. When acquiring a used car through a dealership, the dealer will generally submit the registration transfer on your behalf; however, you also have the option of doing so yourself. If neither the buyer nor seller files for a transfer, the previous registered owner may initiate the process.

Can I import a vehicle into South Korea, and how does the process work?

Foreigners who intend to reside in Korea for at least one year, or those accompanying a family member and planning a stay of at least six months, may be eligible to bring a personal vehicle as part of their removal goods. This exemption can reduce or eliminate applicable customs duties under certain conditions, but the eligibility criteria are strict.

To qualify under the removal goods regime, the vehicle must be recognised by customs as part of the moving shipment; it must be a small to medium-sized passenger car — trucks, mobile homes, and vehicles designed to seat more than ten passengers are not eligible for import; the vehicle must have been in use for at least three months before the departure date; it must be registered in the applicant’s name; and the applicant must supply vehicle registration and insurance documents as supporting evidence.

Trade regulations generally prevent Japanese-manufactured vehicles from being imported into South Korea. Only small and medium-sized passenger vehicles are permitted; vehicles accommodating more than ten occupants, commercial trucks, and mobile homes fall outside the scope of what is allowed. South Korea is a right-hand-traffic country where only left-hand-drive vehicles are used — right-hand-drive vehicles are not authorised for road use.

The step-by-step import process is as follows:

1. Confirm eligibility: Check that your vehicle meets South Korea’s size, age, emissions, and origin restrictions. Verify you meet the residency duration requirement for a removal goods exemption if applicable.
2. Arrange shipping: Busan is the primary gateway for vehicle shipments into South Korea. Incheon is also available for select shipments, especially when final delivery is closer to the Seoul metro area. Choose between container shipping (preferred for high-value vehicles) or Roll-on/Roll-off (RoRo) services.
3. Submit a Moving-Goods Declaration: A Moving-Goods Declaration shall be lodged in the name of the person who moves to Korea, and it is necessary to submit descriptions of declared items, packing list, bill of lading, alien registration card, visa, domestic employment certificate, passport validity check, and documents related to automobiles, if any. This is processed through the Korean Customs Service (customs.go.kr).
4. Pass initial safety inspection: Initial inspection and self-certification is handled by the Korea Transportation Safety Authority (☏1577-0990 / www.kotsa.or.kr).
5. Pass emissions/environment certification: Environment certification is carried out by the Environmental Certification Inspection Agency of Korea Environment Corporation (☏032-590-4000 / www.keco.or.kr).
6. Pay customs duties and VAT: Settle all applicable import duties and VAT with the Korean Customs Service. Tariffs and taxes must be paid in Korean Won within 15 days after goods have cleared Customs.
7. Complete vehicle registration: Apply for registration with your local Si/Gun/Gu office or via the National Car Management Portal (ecar.go.kr).

South Korean authorities require homologation to verify that imported vehicles conform to domestic safety and emissions standards. Modifications may be necessary — for instance, adjusting headlight orientation for Korean roads or meeting local CO₂ emissions limits. Allow adequate time and budget for this stage, which may call for specialist automotive workshops.

Under certain circumstances, it may be possible to obtain an exemption from customs duties and taxes on a vehicle imported for personal use. Foreign diplomats and their dependants are typically relieved of customs duties and VAT when bringing personal vehicles into the country. Confirm your eligibility directly with the Korean Customs Service.

What are the costs involved in importing a car to South Korea?

Bringing a vehicle into South Korea represents a substantial financial commitment. The principal costs are set out below (as of 2025 — always verify current rates with the Korean Customs Service):

The import duty levied on a vehicle depends on its engine type, weight, and emissions profile. Duties on vehicles in South Korea generally range from 8% to 10% of the total customs value, which encompasses the vehicle’s purchase price together with shipping and insurance costs. A Value Added Tax (VAT) of 10% is applied on top of this figure.

South Korea applies a flat 10% VAT across all imports and domestically produced goods. A special excise tax of between 10% and 20% is additionally levied on the importation of certain luxury items and durable consumer goods. Duties are calculated on a Cost-Insurance-Freight (CIF) basis, meaning the taxable base includes not only the purchase price but also the cost of shipping and insurance — a structure common to import regimes in the EU and Australia.

For vehicles brought in as personal effects, the combined duty rates by engine displacement are: 2,000 cc or above (34.24%), 800 cc to 2,000 cc (26.52%), and 800 cc or below (18.8%). These figures apply within the removal goods framework and consolidate all relevant duties — confirm the current rates with the Korean Customs Service before proceeding, as they are subject to change.

All imported vehicles must satisfy South Korean regulatory requirements, and additional compliance costs may arise. Regulations prohibit the sale of an imported vehicle within one year of its arrival in the country. Should a sale occur within that period, a 5% consumption tax calculated on the CIF value becomes payable, along with adjustments to the VAT previously applied to the vehicle.

Use the Korean Customs Service UNI-PASS portal (unipass.customs.go.kr) to identify the applicable HS code and duty rate for your specific vehicle before committing to an import. Given the complexity involved, engaging a licensed customs broker is strongly recommended.

How do I register a vehicle in South Korea?

Anyone seeking to register a motor vehicle in South Korea must submit an application to the relevant City Hall or Provincial Office, the Si/Gun/Gu Office, a Vehicle Registration Office, or through the National Car Management Portal (www.ecar.go.kr). The portal is primarily available in Korean, but local offices can provide in-person guidance.

Registration must be completed within 15 days of purchase for all buyers, irrespective of nationality. Missing this deadline can result in financial penalties and, in the case of new vehicles, potential criminal liability. Individuals who fail to update their registered address within 15 days of relocating may be fined up to 300,000 won.

For a new vehicle purchased locally, the documents typically required include:

• Proof of identity (passport and ARC)
• Proof of address in South Korea
• Vehicle purchase contract or certificate of ownership
• Certificate of liability insurance
• Government bond purchase certificate

For an imported vehicle, additional documentation is required: this includes proof of ownership, an import declaration certificate or certificate of import, a vehicle inspection certificate or safety inspection certificate, and a certificate of liability insurance along with a government bond purchase certificate.

Used vehicles imported into South Korea must satisfy both emissions and safety standards, and the vehicle must successfully pass an emissions test and obtain a roadworthiness certificate before registration can proceed. For locally purchased new vehicles, dealerships generally handle registration on behalf of the buyer. Where a used vehicle is acquired through a registered dealer, the dealer will typically submit the registration transfer application; alternatively, the buyer may do so independently.

The Korea Transportation Safety Authority (KOTSA) (kotsa.or.kr, ☏1577-0990) oversees vehicle safety inspections. Registration fees and taxes differ according to vehicle model and engine displacement; confirm the current fee schedule with your local district office or via ecar.go.kr.

What insurance do I need to drive legally in South Korea?

Both registration and insurance must be in place before a vehicle can be driven on Korean roads. South Korea’s motor insurance market is privately operated — unlike some countries that run state-administered schemes — and a competitive selection of domestic insurers is available. Mandatory third-party liability insurance, known in Korean as compulsory automobile liability insurance (자동차손해배상), is a legal prerequisite for both registering and operating a vehicle.

Major Korean insurers providing motor cover include Samsung Fire, DB Insurance, and Hyundai Marine. Premiums are calculated with reference to the driver’s age, licence category, and the type of vehicle being insured. All foreign nationals — including diplomats, military personnel, consulate staff, and foreign corporate entities — are eligible to take out a policy.

Many expats are caught off guard to discover that their overseas driving history is not automatically accepted by Korean insurers. Without supporting documentation, premiums may be considerably higher than expected. Providing evidence of a foreign driving record can lead to meaningful cost savings. If you have built up a no-claims history in another country, obtain an official letter from your previous insurer before departure — while the concept is analogous to porting a no-claims bonus in countries like Germany or the Netherlands, Korean insurers apply their own assessment criteria and outcomes will vary.

In addition to the mandatory minimum, comprehensive cover (종합보험) is widely available and advisable, particularly for newer or higher-value vehicles. Insurance brokers operating in major cities — especially in areas with established expat communities — can often supply quotations and policy documents in multiple languages.

For regulatory guidance on insurance obligations, the Financial Supervisory Service (FSS) (fss.or.kr) is the body responsible for overseeing South Korea’s insurance sector.

What driving licence do I need in South Korea as an expat?

An International Driving Permit (IDP) issued by a Geneva Convention signatory country is valid for driving in South Korea for up to one year from the date of entry. Once that period expires, a valid South Korean driving licence is required to continue driving lawfully.

South Korean driving licences are divided into two classes. A Class 2 licence authorises the holder to drive vehicles with up to nine seats and motorcycles up to 125cc, while a Class 1 licence covers vehicles with up to fifteen seats. Vehicles outside these categories require a specialist licence.

South Korea has bilateral agreements with numerous countries permitting a direct licence exchange without the need to sit a full driving test. For holders of licences from countries covered by a reciprocity arrangement, the procedure is generally straightforward: attend a driver’s licence examination office, present your foreign licence, passport, and ARC, undergo a vision screening, and pay the required fee. You will need to bring your passport and alien registration card, two wallet-sized colour photographs, and the applicable cash fee. Applicants from countries without a reciprocal arrangement may be required to pass a written test and/or a practical road test.

The licensing authority in South Korea is KOROAD — the Korea Road Traffic Authority (safedriving.or.kr). Examination centres are distributed throughout the country, and a full directory is available on the KOROAD website. It is advisable to check the current list of countries covered by reciprocity agreements directly with KOROAD, as this list is updated periodically.

How do I sell a car in South Korea?

To sell a vehicle in South Korea, you will need your foreigner registration card. A used car may be sold either privately or through a dealership or agency. Private sellers can advertise through car magazines, newspapers, or online platforms. Encar and Bobaedream are among the most widely used websites for private listings.

When a sale is finalised, the seller must furnish the buyer with the vehicle registration certificate (차량등록증), a certificate of seal impression (인감증명서), and a completed ownership transfer agreement. The registration transfer must then be lodged with the appropriate district office. If the sale was conducted through a registered motor vehicle dealer, the dealer is responsible for filing the transfer application. Should the buyer fail to submit the transfer, the seller may do so on their behalf. Any party who neglects to file an application for registration of transfer may be subject to a fine of up to 500,000 won.

It is essential that the seller ensures the ownership transfer is formally recorded as promptly as possible following the sale. Until the transfer is officially registered, the original owner may continue to bear legal and financial responsibility for the vehicle — potentially including any fines, incidents, or tax liabilities generated by the new owner. Expats preparing to leave the country must ensure vehicles are properly sold or transferred to avoid ongoing legal or financial exposure.

South Korean regulations prohibit the sale of imported vehicles within one year of their arrival. If an imported vehicle is sold within that year, a 5% consumption tax calculated on the CIF value becomes payable, alongside adjustments to the VAT previously applied to the vehicle. For vehicles purchased domestically, private individuals selling a personal-use car are not generally subject to capital gains tax, but you should verify the current position with a local tax adviser or the National Tax Service (nts.go.kr).

What are the ongoing costs and obligations of vehicle ownership in South Korea?

Owning a vehicle in South Korea entails a range of recurring financial and regulatory responsibilities that every owner should factor into their planning. These obligations are broadly comparable to annual ownership costs in many other countries, though the details are specific to Korea.

Mandatory periodic safety inspection: All vehicle owners are legally required to submit their cars for regular safety checks. Non-commercial passenger vehicles must undergo a comprehensive inspection from the fourth year of use, with a routine check every two years thereafter. The inspection should be completed at least 31 days before the expiry of the previous certificate. This requirement is conceptually similar to the UK’s MOT or Germany’s TÜV, though the first inspection is not due until the car’s fourth year. A penalty fee of 20,000 KRW applies after the initial grace period, accumulating from 30 days following the registration date.

Emissions testing: Given the Korean government’s position on vehicles with high carbon emissions, compliance with emissions standards is taken seriously. Emissions testing forms part of the mandatory periodic inspection regime administered by KOTSA. Older vehicles or those with higher emission outputs may face additional requirements or usage restrictions, particularly in cities with air quality management zones.

Vehicle registration address update: A change of address necessitates an application to amend your registration details. Failing to register a new address within 15 days of moving will result in a fine of up to 300,000 won — an obligation that frequently catches expats unawares when they relocate within Korea.

Annual vehicle tax (자동차세): An annual automobile tax is levied in South Korea based on engine displacement, with larger engines attracting higher rates. The tax is typically collected in two instalments, in June and December, though paying the full amount in advance is eligible for a discount. Confirm the current tax band rates with your local district office or through the national government portal at gov.kr.

Ongoing insurance: Compulsory liability insurance must be maintained without interruption. As in other jurisdictions, driving without valid insurance is a criminal offence and can attract substantial fines as well as the suspension of driving privileges.

Some municipalities offer reduced registration fees and tax concessions for owners of electric or hybrid vehicles. If you drive an eco-friendly car, check with your local municipal authority to find out whether you qualify for these benefits.

Frequently asked questions

Can I buy a car in South Korea without an Alien Registration Card (ARC)?

The ARC is among the most essential documents needed to purchase a vehicle in South Korea. If you do not yet have one, you will need at least two sponsors — typically your employers — to support the process. If you are in the early stages of establishing residency and your ARC has not yet been issued, discuss with your employer or sponsor whether they can facilitate the purchase on your behalf in the meantime. Always confirm current requirements with the dealership and your local immigration office before proceeding.

Are right-hand-drive vehicles allowed in South Korea?

No. Traffic in South Korea flows on the right-hand side of the road, and only left-hand-drive vehicles are authorised for use on public roads. Right-hand-drive vehicles cannot be registered in South Korea. This is a critical point for anyone relocating from a country such as Japan, the United Kingdom, or Australia, where right-hand drive is standard.

How long does the vehicle import process take?

From start to finish — encompassing ocean freight, customs clearance, safety and emissions inspections, and final registration — the entire import process can take anywhere from several weeks to well over a month, depending on the country of origin, chosen shipping method, and the extent of any modifications required. Do not assume the vehicle will be ready for use immediately upon your arrival in South Korea, and plan your transport arrangements accordingly.

Can I use my overseas no-claims discount when insuring a car in South Korea?

Korean insurers do not always automatically recognise a foreign driving or claims history, and initial premiums may be higher as a result. Supplying documentation of your overseas record can result in a meaningful reduction in costs. Before leaving your home country, ask your current insurer for a formal letter confirming your claims history — this can serve as a basis for negotiating a lower premium with a Korean insurer, though each company applies its own assessment criteria.

Do I need to pass a driving test to get a South Korean licence?

This depends on where your existing licence was issued. South Korea maintains reciprocal licence exchange agreements with a number of countries, under which applicants can obtain a Korean licence without sitting a driving test — typically requiring only a vision screening and payment of an administrative fee. Applicants from countries not covered by these agreements may need to pass a written examination and/or a practical driving test. Check the current list of participating countries at KOROAD’s licence exchange page, as the list is updated from time to time.

What happens if I sell my imported car within one year of bringing it into South Korea?

South Korean regulations prohibit the sale of an imported vehicle within one year of its arrival in the country. If you proceed with a sale within that period, a 5% consumption tax calculated on the CIF value will apply, together with adjustments to the VAT that was originally levied on the vehicle. Verify the current rules and applicable rates with the Korean Customs Service before making any decisions.

Where do I check a used car’s history in South Korea?

The CarHistory service (carhistory.or.kr), operated under the authority of the Korea Transportation Safety Authority (KOTSA), provides official vehicle history reports covering accident records, odometer readings, and ownership history. Before committing to a purchase, you should also contact the Transportation Administration Division of the relevant Si/Gun/Gu Office to verify whether the vehicle is subject to seizure due to unpaid taxes or outstanding penalties.

How often must I have my car inspected in South Korea?

Non-commercial passenger vehicles are required to undergo a comprehensive inspection beginning in their fourth year of use, with a regular inspection every two years from that point onwards. The inspection must be completed at least 31 days prior to the expiry of the existing certificate. All inspections are carried out at authorised centres accredited by KOTSA. For up-to-date inspection schedules and requirements, visit kotsa.or.kr.