Buying Cars in Korea

Taxes

If you buy a car in Korea, you’ll need to pay at least 9% in taxes. Here’s how it breaks down:

• 7%: Registration tax (must be paid within 15 days of purchase)
• 2%: Acquisition tax
• You may also need to pay some government bonds, however, this all depends on the size and model of your vehicle. They will be between 4%-20% of your car’s purchase price.

Your auto taxes will need to be paid every three months. You can do this at any bank.

Registering your used vehicle:

You must register your vehicle within 15 days of purchasing it. If you request it, the car dealership will take care of this for you. Some charge a fee while others don’t. The registration fee will be 5% of the vehicle’s price.

Other things you’ll need:

• Registration application form
• ARC + passport
• Inspection sticker
• Proof of valid vehicle liability insurance
• Temporary tag number/license plate (lets you drive for 10 days)
• Vehicle certificate (if you cannot prove ownership with this, then you’ll also need an ownership certificate).

Odds and Ends

Here are some other important things to keep in mind when you buy a car in Korea:

1. You will need a valid driver’s license to operate a motor vehicle in Korea. Read WorknPlay’s article on Applying for a Korean Driver’s License to learn more.
2. You will need a vehicle inspection every two years (unless your vehicle is brand new and received an initial inspection at the time of purchase). The fee is 15,000KRW, and you can read more about the procedure itself on the Korea Transportation Safety Authority website.
3. Like many countries, you cannot modify your vehicle to have things like monster truck wheels or glowing license plates. Safety first, people!
4. As always, with the exception of Itaewon, most garage or auto repair centers won’t have an English speaker on-hand. However, most can read English, and if your car is a domestic model, even better. If it’s a major issue though, it’s best to take a Korean friend along with you to avoid any possible miscommunications.
5. With the purchase of your vehicle, you will need to obtain auto insurance. Visit WorknPlay’s article about Auto Insurance for Foreigners in Korea to find out more.

If you own a vehicle that you wish to sell to someone else be it a foreign national or Korean national, you will require the following documents to transfer ownership:

a. Transfer certificate (issued by the Dong office or Transportation Administration Section of the gu office)
b. Automobile tax payment certificate (issued by the Dong office) or the current car tax payment receipt c. Seal impression certificate (issued by latest Dong office) . If you've gone to the Vehicle Registry you may not require this one.
d. Proof of residence (in Korea)
e. Car registration certificate 

You want to make sure that the new owner (to be) has the following:
a. Liability insurance certificate (proof that coverage has been purchased)
b. Proof of residence.

Repost from worknplay korea.