How to Buy a Used Car in Korea: A Guide for Foreigners

1. Before You Search: Your Three Essential Documents

1. Alien Registration Card (ARC / 외국인등록증): This is your primary proof of legal residency. It's required for the registration, tax payment, and insurance (1).

2. Valid Driver's License: You must have a permit to drive in Korea.
• International Driving Permit (IDP): This is valid for one year from your date of entry into Korea (1). Note that IDPs from some countries (like China and Indonesia) are not recognized (4).
• Korean Driver's License (운전면허증): If you are staying longer than one year, it is highly recommended to exchange your home country's license for a Korean one (3). Having a Korean license may also result in lower insurance premiums, as some insurers view IDP holders as higher risk.

3. Proof of Residence (거주 증명): This is typically a recent utility bill or a copy of your housing rental contract in your name (1).

2. How to Budget: The True Cost of Your Car

• Acquisition & Registration Tax (취득세/등록세): This is the largest extra cost. Expect to pay approximately 7% of the car's officially assessed value (1, 7).

• Mandatory Insurance (자동차 보험): You must have an active insurance policy before you can register the car (1). This can be a significant upfront cost, especially for new drivers in Korea.

• Dealer Fees (매매 수수료): When buying from a dealer, you will likely pay a "sales fee" (maemae susuryo) for administrative costs, often between 300,000 and 500,000 KRW (9).

3. Where to Buy: SK Encar vs. K-Car

• SK Encar (엔카): This is Korea's largest online marketplace (10). Think of it like eBay Motors or Craigslist. It connects thousands of independent dealers and private sellers with buyers (11). It offers the biggest selection and more competitive prices, but the risk of scams and bad cars is much higher (10).

• K-Car (케이카): This is a large, corporate dealership (10). Think of it like CarMax in the US. K-Car buys its own cars, inspects them, and sells them directly to you. It owns its entire inventory (10). This process is much safer, more transparent, and includes a warranty, but the prices are higher and non-negotiable (10, 16).

• Choose K-Car if: You are a first-time buyer, are not a car expert, and are willing to pay a premium for safety, convenience, and a warranty.

• Choose SK Encar if: You are on a tighter budget, are looking for a specific model, and you (or a trusted Korean-speaking friend) are prepared to do thorough research and vetting.

4. How to Avoid Scams and Bad Cars (Due Diligence)

4.1 The "Bait-and-Switch" Scam: Heowi-Maemul (허위매물)

• Price is Too Good to Be True: This is the #1 sign of a scam. If a car is priced far below the market average for its model and year, it is almost certainly fake (10).

• Seller is in Incheon or Bucheon: While not all dealers here are bad, the risk is significantly higher (10).

• Evasive Communication: The seller is vague, refuses to send the VIN or inspection report, or creates a false sense of urgency (26).

• Low-Quality Photos: The listing has few, blurry, or generic photos. You can use a reverse image search to see if the photos were stolen from another listing (26, 27).

4.2 Your Most Powerful Tool: The Inspection Report

5. The Buying Process: From Handshake to Legal Owner

1. Get Car Insurance (FIRST!): You cannot register the car without proof of active insurance in your name. You must do this after you agree to buy the car but before you go to the registration office (1). (See Section 6 below).

2. Finalize Payment & Get Documents: Pay the seller and get the essential paperwork.
• Vehicle Registration Certificate (차량등록증) (from seller) (1).
• Car Transfer Certificate (자동차양도증명서) (signed by seller) (1).
• If private seller: Their Certificate of Personal Seal Impression (자동차 매도용 인감증명서) (8).

3. Go to Your Local District Office (Gu-cheong / 구청): Take your documents (including your ARC and proof of insurance) to the vehicle registration office in your district (3).

4. Submit, Pay, and Receive:
• Fill out the Application for Registration of Transfer (이전등록 신청서) (33).
• Submit all your documents at the window.
• The official will give you a bill for the 7% acquisition/registration tax. Pay this at the bank window inside the office (7).
• Return to the registration window with your payment receipt.
• Receive your new Vehicle Registration Certificate with your name on it. You are now the legal owner.

6. Car Insurance for Foreigners: The Critical Choice

6.1 Mandatory (책임보험) vs. Comprehensive (종합보험)

• Mandatory Liability (책임보험, Chaeg-im Boheom): This is the legal minimum required for registration (9). It ONLY covers bodily injury and property damage TO OTHERS. It DOES NOT cover your medical bills or any damage to your car (37). The coverage limits are extremely low (e.g., 20 million KRW for property). In a minor accident with an expensive car, this is not enough.

• Comprehensive (종합보험, Jonghap Boheom): This is the standard, highly recommended policy. It includes the mandatory liability coverage (with much higher limits) PLUS coverage for:
• Your Own Medical Bills (Own Bodily Injury)
• Damage to YOUR Car (Own Car Damage) (37)
• Uninsured Motorists (in case of a hit-and-run)

6.2 The #1 Tip for a Lower Premium

6.3 How to Sign Up (Foreigner-Friendly)

• AXA Direct: This is widely considered the most accessible insurer for foreigners. They have a full English-language website (www.axa.co.kr) where you can get a quote and buy a policy online in minutes. They also have a dedicated English-language claims hotline (42).

• Major Korean Insurers: Companies like Samsung Fire & Marine (2) and DB Insurance (1) also offer services, and some have dedicated phone lines for foreign customers.

Final Checklist

1. Preparation: Do you have your ARC, Driver's License, and Proof of Residence?

2. Budget: Did you budget for the 7% tax and other fees?

3. Platform: Have you decided between K-Car (safe, expensive) and SK Encar (risky, cheaper)?

4. Vetting: If using Encar, have you checked for scam red flags and carefully read the Performance & Condition Inspection Record (성능·상태점검기록부)?

5. Insurance: Are you committed to buying Comprehensive Insurance (종합보험) and not just the mandatory minimum?

6. Discount: Do you have your claim-free driving record from your home country?

Glossary of Key Korean Terms

• Chaeg-im Boheom (책임보험): Mandatory Liability Insurance. The legal minimum, which is dangerously insufficient.

• Gu-cheong (구청): Local District Office, where you register your vehicle.

• Heowi-Maemul (허위매물): "Fake Listing." A common "bait-and-switch" scam.

• Ijeon-deungrok (이전등록): The official vehicle ownership transfer/registration process.

• Jonghap Boheom (종합보험): Comprehensive Insurance. The standard, recommended policy that covers you, your car, and others.

• Seongneung Sangtae Jeomgeom Girokbu (성능·상태점검기록부): Performance and Condition Inspection Record. The most important document for vetting a used car.

FOHO: A Smarter Way to Find Your Home in Korea