INCHEON — Incheon Port, South Korea’s primary gateway for secondhand vehicle exports, is facing a significant downturn as major importing nations ramp up regulatory hurdles. According to the Incheon Port Authority (IPA) on February 27, used car export volumes fell by over 10% for the second straight month, signaling a cooling trend in what was once a red-hot market.

Data shows that 38,000 used cars were exported through Incheon Port in January 2026, a 17.4% drop compared to the 46,000 units recorded in the same month last year. This follows a 10% year-on-year decline in December 2025.

Regulatory Walls in Key Markets Industry analysts attribute the slump to aggressive policy shifts in Russia, Jordan, and Syria—traditionally the biggest buyers of Korean used cars.

Russia, which recently hiked its "recycling fees" for vehicles with engines larger than 2,000cc starting January 2026, saw its import volume from Incheon drop by 18.9%. In Syria, the situation is even more dire; exports have plummeted to one-thirtieth of previous levels after the Syrian government scrapped tax-exempt status for used cars and introduced new tariffs.

Jordan has also tightened its grip, implementing stricter permit requirements for used car imports since last October. Consequently, exports to Jordan in January crashed by 61.9% year-on-year to just 1,251 units.

The "Double Whammy" of High Exchange Rates Beyond regulation, macroeconomic factors are weighing heavily on the industry. The prolonged high won-to-dollar exchange rate—hovering around 1,400 KRW—has pushed up the final sticker price for overseas buyers. "The cost burden on buyers in the Middle East and North Africa has reached a breaking point, making Korean cars less attractive compared to local or Chinese alternatives," said an industry official.

Urgent Calls for Infrastructure Local exporters, many of whom are small-scale businesses, warn of a looming crisis. They are calling on the Incheon City government and the IPA to expedite the construction of dedicated export complexes and provide financial cushions to prevent a wave of bankruptcies.

"The environment for used car exports is deteriorating rapidly due to external shocks," a representative from an Incheon-based export association stated. "We need stabilized infrastructure and systematic support to maintain our global market share."

[Copyright (c) Global Economic Times. All Rights Reserved.]