Buying a Car in Korea: The Essential Guide

Ready to hit the Korean roads? Getting a car in Korea is entirely possible for expats! This guide breaks down the requirements, compares new vs. used options, and walks you through the essential registration and insurance steps.

While South Korea boasts an incredible public transportation network, owning a car is a game-changer for exploring the country’s beautiful mountains, coastlines, and smaller cities. As a foreigner, the process of buying and registering a vehicle is straightforward, provided you have the right documentation. We’ve compiled everything you need to know to drive away in your own set of Korean wheels!

Phase 1: Your Essential Documents 📑

Before you even step into a dealership or contact a seller, ensure you have the following documents ready. These are mandatory for purchase and registration:

✅ Alien Registration Card (ARC): This proves your residency and is the most important ID.
✅ Valid Driver’s License: Either a Korean Driver’s License or a Valid International Driving Permit (IDP). Note: The IDP is usually valid for one year from entry.
✅ Proof of Residence: Documentation showing your local address (e.g., utility bill, housing contract, or a Certificate of Fact on Entry and Exit from the local Gu Office).
✅ Proof of Insurance: You must have a valid car insurance policy before the registration transfer can be completed.
✅ Photocopy of Passport.

Phase 2: Choosing Your Car (New vs. Used) 💰

A. Buying a New Car

New cars in Korea are dominated by local brands like Hyundai, Kia, and Genesis, which offer excellent quality, reliability, and strong resale value. Foreign brands are available but are generally more expensive due to import costs.

Process: Contact a dedicated brand dealership. They are highly efficient and will usually handle all the registration paperwork for you, making it the easiest option.
Financing (Loans): Getting an auto loan as an expat can be challenging. Most major banks require a long-term visa (like an F-series visa), an extensive credit history, or a Korean co-signer. Many expats choose to pay in cash or with a large-limit credit card offering monthly installment plans (“할부” – Halbu).

B. Buying a Used Car

The used car market is vast and offers great value, especially for popular Korean models.

Best Places to Search 🔎

Encar (엔카): The largest online used car marketplace. It offers detailed listings, inspection reports, and is the standard source for both dealers and private sellers.
K Car (케이카): A reputable platform that sells certified, inspected, and guaranteed used cars, often with a slightly higher price point but much greater security.
Expat-Friendly Dealers: Dealers near major foreign communities (like Pyeongtaek/Camp Humphreys or Itaewon) often specialize in assisting foreigners, providing English support for paperwork and insurance.

⚠️ Used Car Safety Tip: Always ask for a “차량등록증” (Vehicle Registration Certificate) to verify the car’s status, and consider hiring a third-party mechanic for a pre-purchase inspection. Bring a Korean-speaking friend or interpreter if you are dealing directly with a small local dealer.

Phase 3: Insurance, Registration & Taxes 🏛️

1. Car Insurance (Mandatory)

You cannot register or transfer ownership without a valid insurance policy.

Providers: Major Korean insurers include Samsung Fire & Marine, DB Insurance, and Hyundai Marine.
Cost: Insurance is calculated based on age, driving history (if you have an international claims record), and vehicle type. Expats may see slightly higher premiums initially.

2. Registration & Transfer (Crucial Deadline)

After purchasing the car, the transfer of ownership (used car) or new registration (new car) must be completed within 15 days to avoid a fine (up to ₩500,000).

Location: You will register the car at your local Vehicle Registration Office (usually a division of the City Hall or Gu Office).
Who Does It? If you bought from a dealership, they handle this. If you bought privately, you and the seller must go together (or the seller must give you the necessary paperwork and authorization).

3. Taxes and Fees

When buying a car, you will be subject to a few fees, payable during the registration process:

Acquisition/Registration Tax: Roughly 7% of the vehicle’s price.
Government Bonds: Mandatory public bonds that must be purchased (the cost varies based on the vehicle’s engine size).
Annual Vehicle Tax: Paid annually (or semi-annually), calculated based on engine displacement (cc).

Leaving Korea? Selling Your Car 👋

When your time in Korea ends, selling your car is typically straightforward. You can sell to another expat, a private Korean buyer, or trade it in at a used car dealer (often the easiest).

Deregistration: Ensure the ownership transfer and deregistration are fully completed at the Vehicle Registration Office to avoid any lingering liability for taxes or fines after you leave.
Required for Sale: Vehicle Registration Certificate, ARC, and proof of insurance cancellation/transfer.