Used cars are in high demand thanks to tariffs.

While automakers are facing significant pressure from policy changes in the US, South Korea's used car exports have unexpectedly surged, becoming a new "trump card" for the country's automotive industry.

From a muddy plot of land that was once a seaside amusement park, tens of thousands of used cars are loaded into containers and shipped to seaports for export. While South Korean automakers are under immense pressure from tariffs, with exports to the US declining for six consecutive months, used car dealers remain largely unaffected.

Kevin Seol, a businessman exporting used cars, said: "The U.S. is not our main export market, so tariffs don't significantly impact our business. In fact, the data shows that used car exports are growing strongly, contributing to boosting South Korea's export activity."

Indeed, in August alone, South Korea's used car exports reached $711.5 million, a 35% increase year-on-year. This strong momentum offset the negative impacts of tariffs, helping the South Korean automotive industry set a new export record in August.

Park Young Hwa, President of the Korea Used Car Export Association, shared: "This year, we really expect exports to exceed 700,000 units. In the first half of the year alone, we projected around 370,000 vehicles, but actual exports reached approximately 450,000, partly due to the strong demand in Syria after the conflict ended."

Experts predict that South Korea's used car exports could reach record levels in both quantity and value this year, driven by increasing demand from Russia, Central Asian countries, and the Middle East.

Shin Hyun Do, Director of the Korea Used Car Distribution Research Institute, commented: "Regarding the US tariff increase, the situation may not be too bad for the used car export market. If US tariffs on new cars increase, car prices tend to rise in the long term. This will lead to higher global car prices, and used car prices may also increase. In that case, exporters may be able to sell used cars more favorably than before."

However, this boom is being hampered by poor infrastructure at used car collection points. Due to the lack of export complexes for used cars, businesses have to rent vacant land to store vehicles awaiting export and set up temporary offices. Some officials have suggested the need to build a used car export registration system and develop specialized complexes to promote the sustainable development of the industry.

Source: https://vtv.vn/o-to-cu-dat-khach-nho-thue-quan-100251004053243534.htm