Buying a car in Korea? Beyond the sticker price, you pay acquisition tax, mandatory bonds, and registration fees — typically 8–10% more. Calculate the real cost below.
| Vehicle price | 0 |
| Acquisition tax | 0 |
| Discount | 0 |
| Mandatory bond | 0 |
| Registration, plates approx. | 0 |
| Total extra cost | 0 |
Vehicle price should be the final sale price including VAT and excise tax. Bond rates and discount rates vary by region and time. Confirm with your dealer or local office.
Taxes when buying a car in Korea
1. Acquisition tax (the big one)
| Type | Rate |
|---|---|
| Passenger car | 7% |
| Light car (under 1000cc) | 4% + discount |
| Van / truck | 5% |
On a ₩30M car, acquisition tax alone is ₩2.1 million.
2. Mandatory bonds
To register a vehicle you must buy regional development bonds — 5–20% of the vehicle price, depending on engine size and region.
Two choices with the bond:
- Sell immediately — you only lose the discount (~8%). Most people do this
- Hold — pay face value, get it back at maturity (5–7 years)
3. Registration and plates
Stamps, fees, and plates run about ₩100,000.
Discounts worth claiming
- Electric vehicles — up to ₩1.4M off acquisition tax + bond reduction (plus separate purchase subsidies)
- Hybrids — up to ₩400,000 off
- Light cars — up to ₩750,000 off + bond exemption (plus fuel tax refunds, toll discounts)
- Multi-child families, disabled persons, veterans — separate exemptions (check eligibility)
Taxes already in the sticker price. Korean car prices already include excise tax (5%), education tax, and VAT (10%). This calculator shows what you pay on top of the listed price.
Ongoing costs after purchase
- Annual automobile tax — based on engine displacement (paid in June and December)
- Under 1000cc: ₩80/cc · Under 1600cc: ₩140/cc · Over 1600cc: ₩200/cc
- Pay the year upfront in January for ~5% off
- Insurance and periodic inspections add to the running cost
Don't budget from the sticker price alone. Acquisition tax, bonds, and registration add roughly 8–10% on top.
Estimates based on 2026 rules. Bond purchase rates and discount rates vary by region and timing, and exemption rules can change. Confirm with your dealer, the local district office, or WeTax. This is general information, not tax advice.