🚗 Complete Guide for Foreigners Buying Cars and Getting Insurance in South Korea
For foreigners living long-term in South Korea, purchasing a car and obtaining insurance are essential steps.
While it may seem complex at first, careful preparation allows you to legally and safely own and operate a vehicle.
This guide provides step-by-step instructions based on Alien Registration Card (ARC) requirements and includes practical tips and checklists.
🏷️ 1. Basic Requirements for Foreigners Buying a Car
Foreigners must meet certain requirements to buy a car in Korea:
⭐ Requirements
- Possess an Alien Registration Card (ARC)
- Have a registered address in South Korea
- Use the foreign registration number instead of a resident ID
- Have a Korean bank account for payments
⚠️ Without an ARC, vehicle registration and insurance are impossible, so this must be completed first.
✔ Checklist
- ARC validity checked
- Korean address registration complete
- Bank account opened
- Required documents ready (passport, ARC, employment certificate, etc.)
🏷️ 2. Car Purchase Process
Car purchases for foreigners are generally divided into new cars and used cars.
1️⃣ New Car Purchase
- Visit manufacturer or official dealer
- Select vehicle and sign purchase agreement
- Required documents: ARC, passport, driver’s license (Korean or International)
- Payment: bank transfer accepted
- Vehicle registration: dealer may handle
✅ Advantages
- Latest model with warranty
- Registration process simpler
- Insurance registration easier
❌ Disadvantages
- Higher cost
- Limited options for some configurations
2️⃣ Used Car Purchase
- Private sale or used car dealership
- Mandatory vehicle inspection (service history, accident history)
- Sign purchase agreement
- Vehicle registration: visit the Vehicle Registration Office
- Insurance: previous owner’s history can be verified
✅ Advantages
- Lower price
- More variety in models
❌ Disadvantages
- Vehicle condition must be checked
- Registration must be handled personally
✔ Checklist
- Decide between new and used car
- Prepare contract and registration documents
- Confirm payment method
- Vehicle inspection complete
- Registration agency support checked
🏷️ 3. Vehicle Registration
After purchasing a car, vehicle registration is crucial.
Foreigners register using their ARC and Korean registration number.
⭐ Required Documents
- Purchase agreement
- ARC (original + copy)
- Passport
- Tax payment certificates (acquisition tax, education tax, etc.)
- Insurance certificate
🚗 Registration Steps
- Make a reservation at the Vehicle Registration Office
- Submit all documents
- Receive license plates
- Obtain vehicle registration certificate
💡 TIP: Using dealer registration service significantly reduces hassle.
✔ Checklist
- Prepare all documents
- Verify registration and acquisition taxes
- Install license plates
- Confirm registration certificate
🏷️ 4. Car Insurance for Foreigners
Car insurance is mandatory in South Korea.
Foreigners can get insurance with ARC and a valid driver’s license.
1️⃣ Insurance Types
- Liability Insurance: covers damages to others in an accident
- Comprehensive Insurance: covers vehicle damage, theft, fire, and natural disasters
- Optional Add-ons: roadside assistance, no-claims bonus, rental car coverage
2️⃣ How to Get Insurance
- Visit an insurance office
- Online application via website or app possible
- Required documents: ARC, driver’s license, vehicle registration certificate, payment info
✔ Checklist
- Select insurance type
- Compare premiums
- Check need for optional coverage
- Verify issuance of policy certificate
- Understand accident claim process
🏷️ 5. Driver’s License Requirements
Foreigners need a Korean driver’s license to drive legally.
⭐ License Options
- Drive short-term with International Driver’s Permit (IDP)
- Convert IDP to Korean license before expiration
- Take the Korean driving test (may include language test if required)
✔ Checklist
- Check validity of international license
- Prepare for conversion to Korean license
- Learn traffic laws and driving rules
- Practice sufficient driving
🏷️ 6. Taxes and Maintenance Costs
Besides purchasing and insuring a car, taxes and maintenance costs must be considered.
⭐ Taxes
- Acquisition Tax: based on car price
- Education Tax: percentage of acquisition tax
- Automobile Tax: payable twice a year
⭐ Maintenance Costs
- Insurance premiums vary by car type and coverage
- Fuel: depends on mileage and efficiency
- Regular inspections and repairs
- Parking and toll fees
✔ Checklist
- Pay acquisition and automobile taxes
- Plan annual insurance premium
- Budget for fuel and maintenance
🏷️ 7. Practical Tips Before and After Purchase
🔹 Before Purchase
- Test drive mandatory
- Check used car performance and accident history
- Compare insurance quotes before signing contract
🔹 After Purchase
- Regular inspections and oil changes
- Keep all receipts and documents
- Consider roadside assistance
- Set reminders for insurance renewal
✔ Checklist
- Vehicle condition checked
- Insurance and optional coverage confirmed
- Emergency contacts ready
- Store documents securely
🧭 Conclusion
Buying a car and obtaining insurance as a foreigner in Korea is complex but manageable. Key points:
- Complete ARC and address registration
- Decide between new or used car
- Complete vehicle registration
- Purchase insurance and obtain driver’s license
- Plan for taxes and maintenance costs
Following this guide ensures legal and safe car ownership and driving in South Korea.
