South Korea Used Cars Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The South Korea used cars market was valued at USD 23.06 Million in 2024. The market is expected to grow at a CAGR of 10.80% during the forecast period of 2025-2034. Growing consumer preference for lightly used electric vehicles, driven by subsidy phase-outs and battery degradation awareness, is accelerating certified EV resale activity, especially in Seoul, Incheon, and Daejeon corridors. As a result, the market is expected to reach a value of USD 64.31 Million by 2034.

The South Korea used cars industry can be characterized as a fragmented network of dealerships and offline trading hubs that has now transformed into a smart, semi-digital ecosystem. Sites such as K Car and Hey Dealer provide B2B options with pricing engines fuelled by artificial intelligence, allowing corporate fleet operators and leasing companies to sell used cars in a transparent manner. For example, SK Encar delivers valuation utilities and car history reports, assisting B2B customers like car rental firms in asset disposal. The digitized systems reduce transaction time, enhance trust, and boost fleet turnover efficiency, which is key for companies aimed at maximizing resale margins and vehicle life management.

Certified pre-owned (CPO) programs, like Hyundai Motor’s CPO program and Mercedes-Benz Certified program, are transforming the South Korea used car market dynamics by offering automaker-approved quality assurance. Hyundai, Kia, and foreign brands now provide detailed inspections, prolonged warranties, and post-sales service through CPO showrooms. This pattern is gaining traction among B2B customers, particularly mobility service operators such as SoCar and GreenCar, who value the reliability of the vehicle and the cost of total ownership. CPO cars minimize operational risks and downtime, and they are ideal for business use.

Key Trends and Recent Developments

November 2024

MewCar developed a subscription-based deferred instalment offering in South Korea. This product was launched in response to Lotte Rental's recent foray into the business-to-consumer segment. This subscription model introduces flexible ownership alternatives, addressing affordability concerns and intensifying competition in South Korea’s consumer-facing used car financing landscape.

October 2024

Affinity Equity Partners announced the acquisition of KCar Inc., a prominent digital used-car reseller in South Korea, from Hahn & Company, a private equity investment organization. KCar is expected to merge with SK Rent-A-Car, a company that rents second-hand cars for short and extended periods of time. This indicates deeper consolidation in the used car ecosystem, streamlining digital retail with short-term mobility services for broader customer acquisition.

March 2024

Hyundai Motor Company launched a certified used car company in Korea, demonstrating its commitment to become an active player in the domestic market. Wonha Yoo, Vice President of Hyundai Motors Asia Region, stressed the company's commitment to customer satisfaction, saying, "Made by us, Cared by us," which encapsulates their approach to the certified used car business. This development strengthens OEM-led resale channels, offering buyers quality-assured vehicles with warranty in a traditionally fragmented market.

October 2023

Kia Corporation announced plans to create a used vehicle industry in South Korea, beginning with the selling of refurbished vehicles. The announcement was made shortly after Hyundai Motor unveiled the "Genesis Certified" programme, which allows buyers to acquire used vehicles that have completed rigorous testing and modifications at two specialized centres around the country. This reflects a rising OEM trend to capitalise on resale margins, leveraging service infrastructure and certification standards to build consumer trust.

Growth of AI-Powered Vehicle Matching Systems

Companies are not only listing used cars, but they are also personalizing the shopping experience. Firms such as Autowini and Car Vision have introduced AI-driven systems that review user choice and recommend cars that fit their lifestyle, budget, and usage patterns, redefining the South Korea used cars market trends and dynamics. Government-supported technology programmes incentivize such AI implementations, particularly those that boost consumer safety and trust. South Korea has launched several government-backed initiatives to promote AI technologies that enhance consumer safety and trust. The AI Basic Act, enacted in January 2025, mandates transparency and risk management for AI systems, especially those impacting human rights and safety. Additionally, the National Artificial Intelligence Committee, established in September 2024, oversees AI policy and fosters public-private collaboration to ensure ethical AI deployment. These programs aim to build a trustworthy AI ecosystem in South Korea. Such trends resonate with younger consumers who value digital-first solutions more than physical dealership visits.

Government-Endorsed EV Trade-Ins

The country’s Ministry of Environment offers grants to support the disposal of old diesel cars and incentivize trade-ins for electric vehicles (EVs), boosting the South Korea used cars market growth. Dealers are now refurbishing EVs for second-hand sale, making eco-friendly cars more affordable. Hyundai’s pilot project that repurposes returned EV lease models into the used car market is one such example. This policy synergy is accelerating green mobility while expanding inventory diversity.

Certified Pre-Owned (CPO) Innovations

Certified Pre-Owned (CPO) programmes bundled with full diagnostics reports, AI-evaluated pricing, and even remote test drives are further boosting the demand in the South Korea used cars market. A notable innovation in the country’s certified pre-owned (CPO) market is the integration of refurbished electric vehicle (EV) batteries into used EVs. Companies like Poen are leading this initiative by remanufacturing EV battery packs, primarily NCM lithium-ion types, extending their battery life for resale at about one-third the cost of new batteries. This approach not only reduces costs but also promotes sustainability by minimizing hazardous waste.

Subscription-Based Used Car Models

The growing subscription economy further accelerates the South Korea used cars market value. Startups are offering short-term ownership through flexible leasing or monthly subscription plans, particularly for refurbished vehicles. This is especially appealing to students. For instance, companies like Hyundai Motor Group, SK Rent-a-Car, and LOTTE offer three-month SUV subscriptions including full service and insurance. These models are disrupting traditional ownership, targeting consumers who seek convenience over commitment.

Expansion of Cross-Border Used Car Platforms

The expansion of cross-border platforms in another important trend that is opening up several South Korea used cars market opportunities. Companies like Autowini and Be Forward, for example, are integrating international logistics and multi-language portals to connect Korean used car sellers with buyers in Africa, Central Asia, and Southeast Asia. As a result of such digital expansion, South Korea’s vehicle exports, including used cars, reached USD 6.2 billion in May 2025, reflecting the increasing global demand driven by efficient cross-border B2B platforms and Korea’s reputation for vehicle quality and reliability.

South Korea Used Cars Industry Segmentation

The report titled “South Korea Used Cars Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Sports Utility Vehicle (SUV)
• Sedans
• Hatchbacks
• Others

Key Insight: The SUV segment dominates the used cars market share in South Korea. The SUV segment significantly propels the demand, owing to high B2B demand from mobility service providers, rental fleets, and intercity tour operators for high-resale-value, fuel-efficient, and multi-utility cars. Hyundai Santa Fe and Kia Sorento models of Korean origin provide high safety, spacious interiors, and strong resale metrics. Their popularity has rapidly accelerated after the pandemic mainly due to logistics and mobility startups giving high priority to durability and passenger comfort when buying vehicles, fuelling SUV inventory turnover.

Market Breakup by Fuel Type

• Petrol
• Diesel
• Electric
• Others

Key Insight: The petrol category accounts for the largest share in the South Korea used cars market revenue on account of high supply, longer longevity, and easier maintenance. Fleet operators prefer petrol cars such as the Hyundai Avante or Kia Morning as they offer smoother rides and cheaper maintenance on city routes. Furthermore, government incentives on scrapping old diesel vehicles have tipped the scale of auction volumes and dealer inventories towards petrol-powered models. For example, in 2024, the Seoul Metropolitan Government invested KRW120 billion for a second phase early scrappage support programme for old diesel cars and construction equipment. The program is aimed at decreasing air pollution by enticing the retirement of high-polluting vehicles. The subsidies are capped at KRW 4 million per vehicle, with extra support for low-income owners and small business operators.

Market Breakup by Vendor Type

• Organized
• Unorganized

Key Insight: The organized segment is expected to have the highest revenue share during the forecasted period. This growth is attributable to an increase in the number of franchised dealers on the market. The South Korea used cars market expansion has been further spurred on by new entrants and the development of innovative retail models. Furthermore, organized sellers benefited from higher brand loyalty among all age groups.

Market Breakup by Sales Channel

• Online
• Offline

Key Insight: Off-line sales dominate the industry revenue by a high margin due to increased consumer demand for on-site inspection and negotiation. Customers tend to believe in actual verification as opposed to internet listings, particularly expensive items like cars. Dealers have incorporated technology-based features like interactive kiosks, on-line service histories, and biometric identification checks, further attracting consumers.

South Korea Used Cars Market Share

By Vehicle Type, SUVs Account for the Dominant Share of the Market

SUVs are currently dominating the South Korea used cars market scenario. With a shift in lifestyle needs, families and young professionals are increasingly looking for pre-owned SUVs that offer comfort, safety, and fuel efficiency. Hyundai’s Tucson and Kia Sportage have grown widely popular, with new platforms providing AI-generated performance reviews. The growing popularity of SUVs indicates a shift in consumer tastes, implying opportunities for diversification within the vehicle type sector. In 2023, SUV sales in South Korea reached 900,000 units, surpassing sedan sales by over 30%.

Sedans are observing accelerated growth, stimulated by price-conscious buyers and first-time car owners. Their affordability and fuel economy make them popular in smaller cities. Brands like Samsung SM5 and Hyundai Avante are among the top-traded models. Innovative cashback guarantees and digital auction models have revitalized sedan sales, especially in Tier-2 markets where car ownership is becoming aspirational.

By Fuel Type, Petrol Vehicles Occupy a Substantial Share of the Marlet

Petrol vehicles continue to dominate the South Korea used cars market revenue share due to lower upfront costs and wider availability. Used petrol vehicles like the Kia Morning and Hyundai Sonata primarily contribute to the segment’s growth. These are especially favoured for shorter commutes. Platforms often highlight fuel performance metrics and offer real-time resale value estimates, helping buyers make informed decisions.

Electric vehicles are growing at a fast pace, boosting the overall used cars demand in South Korea. The increasing number of charging stations and government-mandated EV quotas for fleet operators are indirectly fuelling the growth of used EV sales. Between January and September 2024, approximately 25,000 used EVs were sold, marking a 47% increase compared to the previous year. Notably, Hyundai's Ioniq 5 emerged as the top-selling used EV, with sales doubling to 3,300 units, while Kia's EV6 also saw a two-fold increase in sales, ranking third in the market. Platforms now display battery-life reports and include charging station locators to attract buyers. The declining battery prices contribute to this trend, making electric vehicles a more appealing alternative for consumers.

By Vendor Type, Organised Vendors Clock in the Maximum Share of the Market

Due to digital integration, certified programs, and AI-backed evaluation models, organized vendors continue to dominate the used cars market in South Korea. Firms like Car Vision operate through online and offline channels seamlessly, offering door-to-door test drives, real-time financing offers, and zero-contact car delivery. Prominent dealers like K Car and Encar, as well as online platforms like Autobell, are expanding their market share, owing to consumer demand for transparency and dependable services, thereby augmenting the demand.

Unorganized vendors are increasingly adapting to the shifting trends in the South Korea used cars market by offering ultra-localized services and informal subscription models in smaller towns. Vendors are also collaborating with fintech startups to provide microloan-based car purchases. They are also leveraging social media groups for direct sales, bypassing platform fees.

By Sales Channel, Offline Sales Register the Biggest Share of the Market Value

Offline sales continue to boost the overall South Korea used cars market development. While digital platforms are growing, consumers continue to prefer to physically inspect a car, negotiate directly, and receive face-to-face consultations. Major players have reimagined physical showrooms with digital kiosks, virtual vehicle tours, and AI-guided pricing screens, making the offline experience more futuristic and less daunting.

Platforms like Aj Sell Car offer 360-degree car views, real-time chatbots, and financing calculators, fuelling the growth of the online sales segment. Moreover, online platforms provide simplicity, improved reach, and transparency. This is demonstrated by the launch of platforms such as Autobell by Hyundai Glovis. The convenience of browsing, comparing prices, and completing transactions online, appeals to younger generations and tech-savvy shoppers.

Competitive Landscape

The South Korea used car market players are focusing on digitizing the supply chain, enhancing real-time pricing mechanisms, and integrating smart maintenance alerts. Innovations like blockchain-based vehicles and AR test drives are helping platforms to differentiate. New entrants with expertise in fintech, AI, and logistics find several opportunities to carve out niche offerings. Government regulations based on vehicle emissions and fuel efficiency are poised to play an important role in defining the market's evolution during the forecast period.

South Korea used car companies are investing in AI-based car condition grading systems that scan engine diagnostics, driving patterns, and past service history based on onboard telematics. Companies such as K Car and Hey Dealer are testing this to price and certify cars automatically. The technology increases transparency minimizes arbitration in B2B wholesale transactions and facilitates faster turnover by providing inventory backed by trust to fleet purchasers and cross-border traders in real time.

Aj Sell Car

Founded in 2015 and headquartered in South Korea, Aj Sell Car specializes in auction-based platforms for used cars. The firm stands out for its advanced AI pricing engine and real-time bid tracking. The company’s key strategy is blending transparency with speed, allowing customers to get instant offers based on market trends.

Autowini Inc

Established in 2000 and based in Seoul, Autowini connects Korean car sellers with global buyers. The company’s strength lies in its multilingual platform and AI-powered logistics calculator, which estimates shipping timelines. It is one of the few firms using real-time demand heatmaps to guide seller pricing.

Be Forward

Headquartered in Tokyo and founded in 2004, Be Forward operates heavily in South Korea through partnerships. The company focuses on bulk vehicle exports, with integrated customs handling and localized language support for over 80 countries. They also offer fleet purchase packages for developing countries.

Car Vision

Established in 1997, Car Vision has grown popular with smart showrooms with IoT-enabled test drives and touchless car delivery. The company offers hybrid car subscription models and app-based after-sales services.

Other key players in the market are Corea-Auto, Encar, Han Sung Motor, Hyundai Glovis, KB Cha Cha Cha, and PicknBuy24, among others.

Key Highlights of the South Korea Used Cars Market Report:

• Reliable evaluation of historical vehicle resale trends and projected pricing dynamics through 2034.
• Emergence of AI-integrated vehicle grading platforms like K Car and Hey Dealer boosting transparency and resale velocity in the C2B and B2B channels.
• Competitive benchmarking across independent dealerships, OEM-backed resale channels (Hyundai Promise, Kia Approved), and cross-border re-export platforms.
• Regional mapping of volume spikes in metropolitan clusters such as Busan and Daejeon
• Disruption analysis focused on the influx of off-lease fleets and ex-rental cars post-pandemic, reshaping inventory cycles and pricing floors.