Korea’s used car auctions boom on strong exports

(Han Chang-ho)

South Korea’s used car market is heating up, fueled by a recent export boom.

In Russia, demand for Korean used cars is rising through neighboring countries, as new car imports from Europe and the U.S. have become difficult due to the war. Post-conflict reconstruction in Syria is also driving demand, while the improved global reputation of Korean car brands is boosting their popularity across the Middle East and Africa.

When Maeil Business Newspaper visited Lotte Rental Co.’s auto auction site earlier this week, the regular Monday 1 p.m. auction was underway, featuring 1,200 to 1,300 used vehicles.

Each car was either sold or passed over within just four to five seconds. Auctions run simultaneously in three lanes, and pressing a button raises the bid by 50,000 won ($36.86).

While in-person participation was once the norm, mobile bidding has become more common, reducing on-site attendance.

On the day of the visit, 20 to 30 member companies were present on site. A total of 1,203 vehicles were auctioned, with a bid success rate of 65.3 percent. Of the successful bids, 30 percent were for export.

To participate, companies must be registered members of the Lotte Rental auto auction. Of the 1,340 member firms, 30 percent are export-focused.

“I tried to win a Tivoli today but gave up because the price went too high,” said one on-site bidder. “Korean cars are durable and cost-effective, so they are popular in Algeria. I wanted to try buying a Tivoli to see if models other than Hyundai and Kia also get good responses.”

According to the Korea International Trade Association (KITA), Korea’s used car exports jumped from 397,887 units in 2022 to 635,972 in 2023. In 2024, exports reached 626,462 units.