POOR INFRASTRUCTURE THREATENS GROWTH POTENTIAL
Demand from Russia and its trade partners like Kyrgyzstan has surged since the outbreak of the war in Ukraine.
In response to the invasion, Japan curbed trade in used vehicles in 2023 by banning all but used compact cars from being sold directly to Russia.
South Korea added restrictions in 2024, but only for new or used vehicles with 2,000 cc engines or larger, such as bigger SUVs, and some of those are being sold to Russia through Central Asian countries, market participants said.
South Korea’s used car exports are expected to set a new record high in volumes and value this year, experts say, even though fast-growing market Syria banned used car imports in July, according to state media.
But traders said the growth in overseas sales risked being capped by poor infrastructure at the country’s export hubs, including the one at Incheon, a dirt field with makeshift offices and inadequate facilities.
“Private businesses rent these dirt lots here and park their cars there,” said Park Young-hwa, a trader who runs the Korea Used Car Export Association. “In summer, conditions are so bad that buyers with their feet are stuck in mud find it difficult to inspect the cars.”
Ruling Democratic Party lawmaker Heo Jong-sik proposed a bill in April to establish a registration system for used car exporters and develop dedicated export complexes.
Used car exports and cosmetics were the fastest-growing export industries by value for small and medium-sized companies in the first half of 2025, according to government data.
“Since used car exports have already become one of our country’s main export items, the government should step in to manage and foster the industry through policies,” Heo said.
