Buying a car in Korea comes with an acquisition tax ("chwideukse") on top of the sticker price. Knowing how it's calculated — and how new and used cars differ — helps you budget accurately.
How it's calculated
Acquisition tax = taxable base × tax rate
For a passenger car the rate is generally 7%. The key difference between new and used cars is the taxable base — the value the tax is applied to.
New vs. used cars
- New car: the taxable base is essentially the purchase price (before VAT).
- Used car: the base is the lower of the actual purchase price or a standard value table the government publishes by model and year. Because a used car's assessed value is lower, the tax is smaller.
Good to know
- Register and pay within the deadline after purchase to avoid penalties.
- Eco-friendly vehicles (EVs, hybrids) may qualify for acquisition-tax reductions.
- The dealer often handles registration, but confirm the tax amount yourself.
For most passenger cars, budget around 7% of the taxable value. Used cars are taxed on a lower assessed value.
Rates and standard values can change. Confirm with your local government office (Wetax) before purchase. This is general information, not tax advice.
