there's a common challenge facing drivers who have recently visited an auto repair shop. it's that domestic used car parts have become hard to come by. with used car exports reaching a record high of 437,000 units in the first half of 2025 , the domestic used car parts market is undergoing a major transformation. the surge in used car exports is more than just an increase in overseas sales; it's fundamentally shaking up the domestic scrap parts supply chain, forcing customers to wait months for repair parts. behind the explosion of exports to Central Asia and the Middle East is a changed trade landscape following the Russia-Ukraine war.
in this article
- how the surge in used car exports has impacted the parts market
- central Asia is the real reason exports are up
- why junkyards are turning into parts dismantlers
- the dark side of illegal used car parts exports
- frequently Asked Questions
how the surge in used vehicle exports has impacted the parts market
as of the third quarter of 2025, used vehicle exports grew 80 percent year-over-year to $2.62 billion. It's not just a number, it's a tectonic shift that's shaking up the entire domestic used vehicle ecosystem. even basic parts like bumpers, grilles, and moldings for Hyundai and Kia vehicles are becoming a months-long wait.
there's also a paradox to the rise in used car exports. vehicles like the Palisade, which are in high demand for exports, can now cost nearly $20 million more used than new. a used 2025 Palisade 7-seater has a resale price of 79.99 million won, while a new one costs only 63.34 million won. the more popular a car is overseas, the harder it is to find in Korea.
as used cars are exported in their entirety, fewer cars are scrapped, and naturally, there are fewer opportunities to get used parts. automakers are prioritizing the production of new cars, so the supply of repair parts often takes a back seat.
the real reason for the rise in exports is Central Asia
the biggest beneficiary of used car exports is Central Asia. as of 2023, 85,560 vehicles were exported to Kyrgyzstan alone, with another 13,347 sold to Kazakhstan. these numbers are hard to comprehend given the size of Kyrgyzstan's population and economy. the industry believes that these countries are being utilized as a bypass route to Russia.
with Western automakers pulling out of the Russian market after the Russian-Ukrainian war, demand for Korean-made used cars has exploded, especially for SUVs from Hyundai and Kia, which can withstand harsh road conditions. there is a culture in Russia that views vehicles with more than 100,000 kilometers on the odometer as just tame, so undervalued Korean vehicles sell for high prices.
the Middle East is also a major export market. libya has been a traditional market, and since the regime change in December 2024, exports to Syria have increased significantly due to demand for reconstruction. the United Arab Emirates is acting as a transit hub for vehicles bound for Syria.
exports of complete vehicles are subject to high tariffs, ranging from 8 percent to 40 percent, but if they are disassembled into parts, they can be sent at a lower rate of 8 percent. some exporters choose to break the vehicle into three parts and export the parts for assembly, which are then reassembled locally. this allows more vehicles to fit in one container and reduces transportation costs.
why are junkyards turning into parts dismantlers?
the number of scrapped vehicles has remained high in recent years. 1.22 million vehicles were scrapped in 2023 and 1.2 million in 2024, but the junkyard industry is facing a crisis. as used car exports increase, fewer vehicles are expected to be scrapped, and the demand for mechanical parts is expected to decrease as we enter the era of electric vehicles.
the industry estimates that 60 percent to 70 percent of the nation's 562 junkyards will close in the next seven to eight years. in response, junkyards are shifting away from the traditional practice of simply compressing vehicles and selling them as scrap metal to dismantling and selling them piece by piece.
the parts dismantling business is much more profitable. while selling a vehicle as scrap metal yields a negligible profit per vehicle, selling it for parts can bring in an additional $500,000 per vehicle. parts like engines, transmissions, doors, and lamps are not only used in the domestic repair market, but also exported to developing countries.
the government and industry have also established online used parts platforms, such as Ziparts, which allows users to search more than 50,000 parts from junkyards across the country and offers a 100 percent exchange and money-back guarantee. it's also connected to major e-commerce platforms like eMarket and ZMarket, making it even more accessible.
but not every junkyard can make the transition, as it requires significant investment in building a parts catalog, adopting an e-commerce system, and quality control. Smaller or undercapitalized junkyards are more likely to go out of business.
the dark side of illegal used car parts exports
as the used car export market has grown, so has the problem of illegal exports. in September 2025, Incheon Customs recovered four illegally exported vehicles from Qingdao, China, and in April 2024, a crew of three was caught in Yeonsu-gu, Incheon, illegally dismantling and exporting vehicles to Libya.
a major tactic for illegal exports is cutting vehicles into three parts and disguising them as parts to avoid regulations on exporting finished vehicles and lower tariffs. falsifying documents is also common. this involves computerized manipulation of vehicle license plate numbers, or obtaining an export license for a scrapped vehicle, but actually sending a stolen vehicle or a cannonball.
a salvage car is a vehicle with a different title than the actual owner. illegal exports include rental cars that have not been returned, repossessed vehicles, and vehicles that have been sold without paying loans or taxes. these vehicles are often taken out of the country because they are difficult to trade legally in the country.
the problem is a regulatory loophole. when the government streamlined export procedures in 2014, it abolished the pre-approval system and replaced it with self-declaration. Exporting used cars is a free-for-all, with no licenses required and no quality or safety inspections mandatory. Customs can't open every container, and declaring Central Asia as a legitimate destination makes it difficult to detect, even if the final destination is Russia.
according to industry insiders, the Incheon export hub alone receives one to two fraudulent reports a day. the government has restricted exports to Russia of vehicles with a displacement of more than 2,000 cc and a price tag of more than $50,000 since 2023, but this can be easily circumvented by routing through Central Asia.
frequently asked questions
q: Why is there a shortage of used car parts?
a: The surge in used car exports has meant fewer vehicles are being scrapped, which has reduced the sources of used parts. with 437,000 units exported in the first half of 2025 alone, this has created a void in the domestic parts supply chain.
q: Why are so many exports going to Central Asia?
a: Since the Russian-Ukrainian war, Western sanctions have made it difficult to export directly to Russia, so Central Asian countries like Kyrgyzstan and Kazakhstan have been utilized as a bypass route. considering the size of their populations and economies, these countries import an unusually high volume.
q: Why are junkyards turning to parts dismantling?
a: Dismantling and selling parts rather than scrapping them for scrap metal can generate additional revenue of about $500,000 per vehicle. Also, with the increase in used car exports and the expected reduction in the volume of scrapped cars due to the shift to electric vehicles, a new revenue model is needed.
q: How does illegal used car export work?
a: Typical methods include cutting the vehicle into three parts and disguising them as parts, or forging documents to export stolen or cannonball cars. since the simplification of the export process in 2014, illegal exports have increased due to weaker prior verification.
q: What will happen to domestic used car parts prices in the future?
a: If used car exports continue to increase, parts supply shortages will likely intensify and prices will likely rise further. however, the rise of online platforms and the growth of the parts recycling market may provide some buffer.
conclusion: Understanding the changing used car ecosystem
the domestic used car parts market is undergoing a major transition. the surge in exports is a positive sign of the competitiveness of the Korean automotive industry, but it has also made it difficult for domestic consumers to obtain repair parts. Various changes are occurring simultaneously, including the conversion of junkyards into parts dismantling businesses, the rise of online platforms, and the crackdown on illegal exports.
the future of the used car market depends on many factors. the status of the Russia-Ukraine war, changes in international trade regulations, and the pace of electric vehicle adoption will all have an impact. what's certain is that the used car and used parts market is no longer just a domestic issue, but a complex ecosystem with a global supply chain.
if your vehicle is in need of repair, it's a good idea to check the availability of parts and plan ahead. share your experiences in the comments, and hit the subscribe button for more great automotive information.