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Out with the new, in with the old: Korea's used cars driving up record export numbers

Published: 24 Feb. 2026, 14:00 Updated: 25 Feb. 2026, 10:16

Used cars are seen at a used car dealership in Seoul on Feb. 18. [YONHAP]

Korea posted a record $72 billion in automobile exports in 2025 despite a sharp drop in shipments to the United States, as a surge in used car sales led by strong demand from Kyrgyzstan offset declines in new vehicle exports, according to statistics from the Korea International Trade Association (KITA) on Tuesday.

Kyrgyzstan recorded the largest increase in imports of Korean automobiles over the past year. Korea exported $3.2 billion worth of vehicles to the Central Asian country, up 105.4 percent, or $1.64 billion, from a year earlier.

The increase exceeded the overall rise in Korea’s automobile exports, which grew by $1.19 billion during the same period.

Used cars, not new vehicles, drove the growth. Korea shipped only about 200 new vehicles to Kyrgyzstan last year, but exported roughly 130,000 used cars, which accounted for 99 percent of total shipments to the country.

Exports to the United States fell sharply after U.S. President Donald Trump's administration imposed item-specific tariffs on automobiles. Exports to the U.S. declined by $4.59 billion, or 13.2 percent, on year in 2025. Even so, total automobile exports rose 1.7 percent on year to reach a record $72 billion.

A breakdown of the figures shows a clear divergence between new and used vehicles.

New car exports fell 4 percent on year to $63.11 billion, while used car exports jumped 75 percent to $8.86 billion. The share of used cars in total automobile exports rose from 7.2 percent in 2024 to 12.3 percent last year. Without the surge in used car shipments, Korea would not have achieved a new export record.

Used cars are seen at a used car dealership in Seoul on Feb. 18. [YONHAP]

Demand for used vehicles continues to grow in emerging economies. While incomes in these countries are on the rise, many of these consumers still lack the purchasing power to buy new cars. Countries with major automakers, including Korea, Germany, Japan, the United States and China, instead export used vehicles to meet this demand.

Geopolitical factors have also supported the trend. The end of the Syrian civil war and the outbreak of the Russia-Ukraine war have increased demand for used vehicles in affected regions.

In the past, Japanese used cars dominated many of these markets. Recently, however, stronger quality assessments of Hyundai Motor and Kia autos have lifted demand for Korean used vehicles. Korea’s major destinations for used car exports include Kyrgyzstan, Kazakhstan, Libya and the United Arab Emirates.

“Libya serves as a reexport hub to North African countries such as Tunisia and Algeria, where purchasing power remains low, while Kyrgyzstan functions as a channel for reexports to Russia,” said Jung Jun-ha, a researcher at the Korea Automotive Technology Institute.

Used cars are seen at a used car dealership in Seoul on Feb. 18. [YONHAP]

Unlike new car exports, shipping used cars overseas does not result in much new car production in Korea.

But strong sales of Korean used cars can encourage auto parts companies to enter those markets, expanding the aftermarket ecosystem of parts and services.

Automobiles also ranked as the top export item among small- and medium-sized enterprises last year, surpassing K-beauty products.

As global demand shifts toward higher-value vehicles, including environmentally friendly models, the used car market can expand further. Korea’s exports of environmentally friendly used vehicles surged more than 200 percent last year.

“As purchasing power rises in emerging markets and countries introduce stricter environmental rules, demand for environmentally friendly vehicles also increases,” Jung said. “The government needs to provide systematic support, such as building dedicated used car export complexes, to meet global demand.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]