K1 Auto – How it works
Step 1 - Register
Complete your registration to gain exclusive direct access to one of the largest auto auctions in South Korea. Only verified dealers are allowed access to the auction and proper paperwork will need to be provided to validate the business.
Step 2 – Deposit
You must provide a deposit to set a credit line and view inventory on K1 Auto. The deposit is used to set your credit limit, impacting total bid range. The opening credit multiplier is 10X the amount deposited. For example, an opening deposit of $1,500 USD will result in a $15,000 USD credit limit (maximum bid limit). The minimum deposit required is $1,500 USD.
Step 3 – Look, examine, and find the vehicle you want
When the deposit is received, we will generate a direct seat for you in Auto Hub. Once you gain access to the inventory, you can browse the inventory offered for sale, browse the condition report, and select the vehicle that you are interested in.
Step 4 – Place a bid or offer
Once the vehicle you want is selected, you can place a proxy bid for the amount that you are willing to pay. Once the sale begins, we will transmit your bid to the auction, and if you are the highest bidder, the car will be purchased. If someone else places a higher bid, then you can try again the following week on a different vehicle.
Step 5 – Bid is accepted/car is won – what next?
Full price (including auction fees) must be submitted within 24 hours of the sale. In order to avoid late fees or delays in processing – the full amount must be submitted in USD immediately.
Step 6 – Inspection and shipping
Once payment is received, the vehicle will be thoroughly inspected to validate the condition and get ready for shipping. Once the vehicle passes inspection, it will be moved to the port, booked on a boat, and will be loaded into a container. You will be notified throughout the process of the status and location of the vehicle to make sure that you are fully aware of where your vehicle is in the process.Frequently Asked Questions
Can foreign dealers purchase cars directly at auction in South Korea?
No, foreign dealers cannot buy cars in South Korea. The country has specific regulations and rules in place that restrict the sale of cars to non-resident foreign entities. Approved memberships within the auction manage dealer access in accordance with auction regulations to fulfill the necessary requirements for international dealers.
What are the primary reasons for this restriction?
The South Korean government implements these restrictions to manage and regulate the automotive market within the country. The rules aim to support local industries, control imports, and ensure compliance with safety and environmental standards.
Can individual foreign buyers purchase cars in South Korea?
While foreign individuals can buy cars for personal use in South Korea, the regulations for commercial entities, including foreign dealerships, are different. Individual buyers typically face fewer restrictions compared to business entities.
Can foreign dealers collaborate with local distributors to sell cars in South Korea?
Yes, collaborations with local distributors or establishing partnerships with South Korean companies are potential avenues for foreign dealers to participate in the market. Working within the framework of these regulations allows for a more seamless entry into the market.
How to get started with K1 Auto?
To complete registration and be able to place a bid on a vehicle. Deposit requirement is a minimum $1,500 USD or 10% of the purchase price whichever is greater. If the deal falls through for any reason the deposit is refundable. Deposit refunds are subject to a processing fee of $50. After deposit refund request, funds will be processed within 10 working days.
