Analysis-South Korea’s booming used car exports cushion impact of US tariffs

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Analysis South Koreas booming used car exports cushion impact of US.jpeg

By ju-min park

Inchon, South Korea (Reuters) -from the muddy lands of a former former Muzhef on the South Korea coast, tens of thousands of vehicles are filled for shipping abroad as prosperous used car exports help reduce the impact of American definitions on new car sales.

Stolen in sweat from the outer heat, workers load cars and connect them in a clock charging containers from temporary facilities in the largest car export center in South Korea in Inchon, west of Seoul.

“It is embarrassing to say ourselves that our works are the element of stars export,” said Kevin Seoul, a trader who ships about 100 cars per month. “But the industry continues to grow in numbers, so I think we are contributing to national exports.”

South Korean car shipments have decreased to the United States for six consecutive months since President Donald Trump announced 25 %.

However, global auto exports have increased for three consecutive months, with the support of the sales of high used vehicles, which represent a quarter of the total export of cars by size and 13 % at value, according to the Ministry of Trade and customs data.

The Ministry of Commerce said that South Korea exported $ 5.5 billion in cars in August, an increase of 9 % over the previous year and the highest monthly total. Used car exports jumped by 35 % to $ 711.5 million in the same month, according to the Used Cars Distribution Research Institute.

Merchants and experts said that the growth of used vehicles is largely driven through the uncertain demand for the old Hyundai and Kia cars in Russia and in the Middle East and winning twice.

“Exports to the United States do not represent much of our business,” said Seoul. “The demand from other strong countries, so the definitions did not really harm us.”

Customs duties can raise the prices of used cars

South Korea is exporting most used cars that are sold to the Middle East, Central Asia and Russia, according to government data and merchants.

In those markets, Korean cars can be more attractive than those competing with export competitor in Japan because they are designed to drive on the right side of the road, while Japan is driving on the left.

In the largest new export market in South Korea, the United States stumbled on a 25 % tariff that is still higher than 15 % for Japanese and European cars, although Seoul is in negotiations to reduce.

Sheon Hyun Du, director of the Institute for Cars Distribution used in Korea, said.

“If the American definitions rise on new cars, the prices of cars will rise. This will lead to the high prices of cars worldwide,” he said. “In this case, it is possible that the prices of the used cars will be done.”

In the first half of the year, used car exports in South Korea jumped by 72 % to $ 3.9 billion, with 437151 cars being charged abroad, which represents about a quarter of a total of total car exports by size.

He added that South Korea sold more cars used to the Middle East more than new vehicles between January and June and reported 40 % in the average monthly sales of Russia.

Weak infrastructure threatens growth capabilities

The demand from Russia and its trading partners, such as Kyrgyzstan, has risen since the war in Ukraine.

In response to the invasion, Japan photographed trade in used vehicles in 2023 by banning all integrated cars used directly to Russia.

Market participants said that South Korea added restrictions in 2024, but only for new or used vehicles that include 2000 or larger engineers, such as the largest SUV, and some are sold to Russia through Central Asian countries.

Experts say it is expected that used car exports in South Korea will set a new record in folders and value this year, although the fast -growing market Syria has banned the imports of used cars in July, according to government media.

But merchants said that growth in sales abroad risks poor infrastructure in the country’s export centers, including those in Inchon, an earthen field with temporary offices and insufficient facilities.

“Private companies rent these dirt here and stop their cars there,” said Park Young Hwa, a trader running the Car Export Association in Korea. “In the summer, the conditions are so bad that buyers who have stuck in the mud find it difficult to examine cars.”

Democratic Runder legislator Hugh Jong Sick suggested a draft law in April to create a registration system for used car exporters and develop customized export complexes.

The exports and cosmetics used were the fastest export industries through the value of small and medium companies in the first half of 2025, according to government data.

“Since the exports of cars already used have become one of the main export elements in our country, the government must interfere in industry management and enhance it through policies,” Hugh said.

(Participated in the reports of Ju-MIN Park; edited by Josh Smith and Jimmy Farid)

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2025-09-29 22:02:00

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