Korea Used Car Export vs Scrappage Net Proceeds Calculator

Compare Korean used-car export and ordinary scrappage quotes after towing, handling, shared settlements, and confirmed refunds, with net proceeds and break-even offers.

1. Used-car export quote

2. Ordinary scrappage quote

3. Adjustments common to both routes

Enter only amounts that remain the same whichever route you choose. Route-specific deductions belong in the quote cards above.

Higher estimated net proceeds

Used-car export

Used-car export is ahead by ₩750,000.

Export net proceeds

₩2,200,000

Scrappage net proceeds

₩1,450,000

Absolute difference

₩750,000

Common adjustment

₩0

Net proceeds bridge

Used-car export and ordinary scrappage net proceeds comparison
ItemExportScrappage
Gross contractor offer₩2,400,000₩1,500,000
Route-specific costs-₩200,000-₩50,000
Common deductions-₩0-₩0
Common confirmed refunds₩0₩0
Estimated net proceeds₩2,200,000₩1,450,000

Negotiation break-even offers

Export break-even offer

₩1,650,000

Gross export quote needed to match the current scrappage result.

Scrappage break-even offer

₩2,250,000

Gross scrappage quote needed to match the current export result.

Export-plan evidence is not marked ready

Korean Automobile Registration Rule Article 37 requires evidence such as an export letter of credit or export contract for export-purpose deregistration.

Do not deduct an included fee twice

If towing or handling was already netted from a contractor's stated payment, enter zero for that separate field. Compare both offers on the same written basis.

Korea 2026 procedure checkpoints

  • Confirm the event date used for the general 1-month deregistration application period with the registration authority.
  • For export-purpose deregistration, track the export-performance report within 12 months from deregistration.
  • Verify the recycler's registration and obtain the vehicle acceptance certificate for scrappage.
  • Confirm vehicle-tax and insurance refunds directly with the local government and insurer.

Related calculators

South Korea jurisdiction and 2026 rule note

This English calculator compares a used vehicle export quote with an ordinary scrappage quote under South Korean deregistration procedures. The legal checkpoints were verified through the Korean National Law Information Center OPEN API on July 24, 2026. Contractor prices, dismantling compensation, towing, storage, and handling charges are not statutory rates, so the calculator uses only amounts that you enter from written quotes.

Compare net proceeds, not the largest headline offer

An older, high-mileage, damaged, or commercial vehicle can attract an export buyer even when its domestic resale value is weak. The export headline may look better, but owner-paid transport, export handling, deregistration agency work, storage, inspection, or document costs can reduce the final payment. A scrappage quote may look lower while including collection and deregistration handling.

This tool puts both routes on the same basis. It subtracts route-specific costs, applies loan and arrears settlements that are genuinely common to both routes, and adds only vehicle-tax and insurance refunds confirmed by the relevant authority or insurer. It then shows the estimated cash left for the registered owner and the gross offer needed for either contractor to break even with the other route.

Quote bridge

See gross offer, route cost, common settlement, confirmed refund, and final net proceeds as separate rows.

Direct comparison

Identify whether export or ordinary scrappage leaves more cash and measure the exact KRW difference.

Negotiation floor

Find the export or scrappage gross offer that would match the other route after route-specific costs.

What each input means

Used-car export route

  • Exporter purchase offer: the gross KRW amount the exporter promises to pay the registered owner
  • Transport or towing: owner-paid delivery to the exporter, storage yard, or port handoff point
  • Export and deregistration fee: a separately itemised agency or document charge
  • Storage and other deductions: only additional costs expressly stated in the written quote

Ordinary scrappage route

  • Scrapyard compensation offer: the gross amount quoted by a registered vehicle dismantling and recycling business
  • Transport or towing: enter zero when collection is included without an owner charge
  • Deregistration handling fee: only a charge listed separately from the promised compensation
  • Parts handling and other deductions: contract deductions that are not already netted from the gross offer

Adjustments common to both routes

Use the lender-confirmed loan or lien payoff and authority-confirmed arrears only when the same amount applies whichever route is chosen. Use the local-government vehicle-tax refund estimate and insurer-confirmed policy refund instead of a guessed percentage. If a cost applies only to export or only to scrappage, place it in that route's other-cost field so the comparison remains valid.

Calculation method

Route-specific proceeds

Export route cost = export transport + export agency fee + export other cost
Scrappage route cost = scrappage transport + scrappage agency fee + scrappage other cost
Proceeds after route costs = gross contractor offer − route cost

Common settlement and final proceeds

Common deductions = confirmed loan payoff + common arrears settlement
Common refunds = confirmed vehicle-tax refund + confirmed insurance refund
Common adjustment = common refunds − common deductions
Route net proceeds = proceeds after route costs + common adjustment

Break-even gross offers

Export break-even offer = scrappage offer − scrappage route cost + export route cost
Scrappage break-even offer = export offer − export route cost + scrappage route cost

A common adjustment changes the cash left in both cases by the same amount. It therefore does not change which route wins or the break-even contractor offer.

Worked example

Assume an exporter offers KRW 2,400,000 and export-specific costs total KRW 200,000. The export proceeds after route costs are KRW 2,200,000. A registered recycler offers KRW 1,500,000 and scrappage-specific costs total KRW 50,000, leaving KRW 1,450,000 before common adjustments.

Now add KRW 1,200,000 of loan and arrears deductions and KRW 400,000 of confirmed vehicle-tax and insurance refunds. The common adjustment is negative KRW 800,000, so export net proceeds become KRW 1,400,000 and scrappage net proceeds become KRW 650,000.

Worked comparison of a KRW 2,400,000 export quote and KRW 1,500,000 scrappage quote
ItemExportScrappage
Gross contractor offerKRW 2,400,000KRW 1,500,000
Route-specific costs−KRW 200,000−KRW 50,000
Common adjustment−KRW 800,000−KRW 800,000
Estimated net proceedsKRW 1,400,000KRW 650,000

Export is ahead by KRW 750,000. The export break-even gross offer is KRW 1,650,000 because KRW 1,650,000 less KRW 200,000 of export costs equals the KRW 1,450,000 scrappage proceeds after route costs. The common settlement does not change that KRW 750,000 route difference.

Step-by-step use

  1. Obtain written quotes from an exporter and a registered vehicle dismantling and recycling business
  2. Separate the promised owner payment from every deduction that has not already been netted
  3. Confirm the actual lender payoff, registered interests, authority arrears, vehicle-tax refund, and insurance refund
  4. Read the two net-proceeds values and the KRW difference rather than choosing the largest gross offer
  5. Use the break-even offer to ask the lower route for a final, no-additional-deduction quote
  6. Before vehicle handoff, confirm payment date, deregistration responsibility, evidence delivery, and any post-inspection reduction clause in writing

Korean deregistration and export checkpoints

Korean legal checkpoints for vehicle export and ordinary scrappage verified July 24, 2026
Current ruleArticlePlanning effect
Automobile Management ActArticle 13Scrappage and export are separate deregistration grounds; the recycler or exporter generally applies on the owner's behalf, subject to the direct-application exception
Automobile Registration DecreeArticles 31 and 32Check the general 1-month application period from the legally relevant event date and the export-performance report within 1 year after export-purpose deregistration
Automobile Registration RuleArticles 37 and 41Export-purpose deregistration needs planned-export evidence such as an export contract; performance evidence follows after export
Local Tax ActArticle 128Vehicle tax may be settled by the deregistration date, but the calculator accepts only the authority-confirmed refund or payment amount

The 1-month and 12-month clocks are different

Article 31 of the Automobile Registration Decree states the general deregistration application period as one month from the occurrence of the deregistration ground. The calculator does not decide that event date. Article 32 gives one year from export-purpose deregistration to report whether export was completed. Confirm both dates with the registration authority instead of treating vehicle handoff as the automatic start date.

A numeric result does not clear a registered interest

Article 31(10) of the Automobile Registration Decree and Article 37(1)(10) of the Automobile Registration Rule can require third-party consent or an enforceable judgment for an ordinary deregistration application involving a registered interested party. The tool keeps the financial comparison visible but cannot decide seizure, mortgage, over-age deregistration, co-ownership, or priority issues.

Practical scenarios and interpretation

Older model with overseas demand

Export may win when a destination market values the vehicle or its parts more highly. Enter all owner-paid delivery and document costs before relying on the premium.

Non-running or accident-damaged vehicle

Long towing distance or storage can erase an export advantage. Compare the exporter's owner-paid pickup with the recycler's included collection.

Loan or lien balance remains

A strong contractor offer can still leave little cash or require an additional owner payment. Use the lender's current settlement figure and confirm release documents separately.

Negotiating the weaker quote

The break-even figure converts a vague request for a higher price into a precise gross offer. Ask whether that revised amount is final and free from further towing, inspection, or document deductions.

Limits and cautions

  • Do not deduct a fee again when the contractor's stated payment is already net of that fee
  • Do not treat market scrap metal, exchange-rate, or overseas-demand estimates as a guaranteed contractor payment
  • Do not enter a guessed vehicle-tax or insurance refund percentage; use the authority-confirmed KRW amount
  • Negative net proceeds are intentional and can signal that confirmed debts and costs exceed the vehicle disposal proceeds
  • A higher financial result does not verify contractor registration, solvency, payment timing, export performance, or deregistration responsibility
  • The calculator excludes early-scrappage subsidies, customs and business taxes, court or tax auction distribution, over-age deregistration, and co-owner share allocation

Frequently asked questions

Does the larger export offer always win?

No. Subtract owner-paid towing, export handling, deregistration, storage, inspection, and document costs that remain outside the promised payment. Compare that result with the scrappage quote after its own costs.

Does this include Korea's early-scrappage subsidy?

No. Eligibility, emission grade, program budget, replacement-vehicle conditions, and approved subsidy amounts belong to a separate early-scrappage analysis. This page compares an ordinary recycler quote with an exporter quote.

Why are vehicle-tax and insurance refunds manual inputs?

Vehicle tax depends on payment history and the deregistration date. Insurance refunds depend on the policy period, riders, cancellation date, and insurer terms. A national flat percentage would create false precision, so the calculator accepts only the amount you confirm.

Can a vehicle with a seizure or mortgage be exported or scrapped?

Registered interests can require consent, release, or other legal documents for an ordinary deregistration. Separate regimes and exceptions may exist, but this calculator does not decide them. Check the vehicle register and the registration authority, lender, and seizure authority.

What happens if export is not completed after export deregistration?

Automobile Management Act Article 13(8) allows a request for scrappage or an application for new registration when export could not be completed. Automobile Registration Decree Article 32 and Automobile Registration Rule Article 41 govern the one-year performance-report and related notification process. Confirm the actual procedure with the authority that processed deregistration.

Official sources and maintenance date

The current effective-law API results were checked on July 24, 2026. Automobile Management Act MST 286989 was returned with the effective date June 16, 2026. Automobile Registration Decree MST 286481 and Automobile Registration Rule MST 286693 were effective June 3, 2026. Local Tax Act MST 282559 was effective July 1, 2026.

Recheck these provisions, current contractor documents, and actual refund figures before relying on the estimate. This page is a planning tool, not a contractor guarantee, authority decision, tax calculation, or legal opinion.

Put both written quotes on one cash basis

Enter the exporter and recycler offers, every separate deduction, and confirmed common settlements to compare KRW net proceeds immediately. Before handoff, keep the payment date, reduction clauses, deregistration responsibility, and required evidence in writing.