This article was displayed on the ChosunBiz RM Report website at 5:00 p.m. on Feb. 6, 2026.
A (53), who works as a car dealer in Busan, now hands customers a "consent form" before signing a contract. It says they will not illegally re-export to Russia, Belarus, Central Asia, and other regions. Reselling itself is not illegal, but since the Russia-Ukraine war, if a vehicle ends up in certain countries, it can immediately amount to a violation of export controls.
According to legal sources in the auto and legal sectors on the 9th, a recent black market scheme is rampant in which buyers fully pay cash for a new car in Korea and, right after registration, disguise it as a "used car" and send it to Russia or Belarus via a third country. The European Union (EU) has banned exports of high-priced cars to Russia since 2022, and taking advantage of this, illegal resellers are increasing who export to neighboring countries and then move the cars overland into Russia.
A, who works at an IT corporations, bought a BMW sport utility vehicle (SUV) X5 30d in 2021 for about 100 million won. After driving 43,000 kilometers, A resold it to a reseller last year for 93 million won. Although A used it for four years, depreciation was only 7 million won.
A said, "It's easy to find Russian resellers in imported car clubs and forums, and high-performance models often fetch a premium." In fact, Spanish outlet El País reported in Oct. 2023 that a parallel importer in Moscow sold a BMW 520i M Sport sedan for more than 40 million won above the Korean sticker price.
The legal community sees the issue not as whether it was bought with one's own money, but as where it went and what procedures were followed to take it out.
Under the 33rd Strategic Goods Export and Import Notice, implemented in Feb. 2024, Korea requires permission from the Minister of the Ministry of Trade, Industry and Resources to export passenger cars with engine displacement over 2,000cc to Russia or Belarus. Removing them without permission violates the Foreign Trade Act, and any false declaration in the export process can also raise issues under the Customs Act.
Even so, the number of Korean used cars headed to Russia has surged. According to the Korea International Trade Association and Russian data, shipments that had been around 1,000 units annually before 2022 grew to 26,955 in 2023, 55,496 in 2024, and 61,573 were headed to Russia in just January to August 2025.
Prosecutions are also following in succession. On the 5th, the Busan District Court Criminal Division 17 (single-judge) gave suspended prison sentences to two Kyrgyz nationals indicted for exporting, without permission, 39 used cars of 2,000cc or more worth about 4 billion won to Russia, Belarus, and elsewhere, and ordered one of them to forfeit a little over 1.7 billion won. They were found to have declared to customs that the cars were bound for a third country but actually sent them to Russia.
The auto industry's move to obtain consent forms and even discuss canceling contracts or withholding delivery also stems from these legal risks. The mere suspicion of involvement in a sanctions-evasion transaction is burdensome, and potential overseas disputes over warranties and after-sales service (A/S) for domestic-market vehicles cannot be ruled out.
In fact, last month there was a claim that Hyundai Motor headquarters suspended delivery, suspecting export intent based on a Palisade buyer's address. Toyota Motor Korea has been obtaining consent since Aug. 2023 that buyers will not resell or export overseas for profit.
Attorney An Seul-a of Daejin Law said, "If a manufacturer supplies vehicles despite knowing about illegal exports, aiding and abetting liability could be an issue, and violations committed in the course of corporate business could also lead to corporate liability." An added, "If, in the course of roundabout exports, a near-new car is declared as a 'used car,' additional liability for false declaration under the Customs Act could apply."
Violating a consent form does not automatically constitute fraud. However, if non-export was a premise of the contract, and from the outset the contract was concluded for the purpose of overseas export through false statements or concealment of material facts, fraud could be established. Attorney An said, "A mere breach of contract is hard to view as fraud, but if the transaction was secured through false explanations or a forged signature, it could be assessed as deception."