INCHEON, South Korea: In a sprawling lot on South Korea’s west coast, workers are loading thousands of used cars onto ships each day, as Incheon emerges as the country’s biggest hub for second-hand vehicle exports amid surging global demand.

Workers, drenched in sweat from the heat, strap vehicles into containers around the clock to meet booming global demand.

This growth is helping South Korea offset losses in new car exports to the United States, which have fallen for six straight months after Washington imposed a 25 percent tariff on Korean cars. By contrast, global car exports have climbed, fueled by record-high used car sales.

In August alone, South Korea exported US$5.5 billion worth of cars—its highest monthly total ever—while used car exports surged 35 percent to $711 million. Between January and June, the country shipped 437,000 used cars overseas, worth nearly $4 billion. These cars now account for about a quarter of total auto exports by volume.

Much of the demand comes from Russia, Central Asia, and the Middle East, where older Hyundai and Kia models are especially popular. Traders say Korean cars are often preferred to Japanese ones because they are built for right-hand traffic, unlike Japan’s left-hand drive system. A weaker Korean won has also made them cheaper abroad.

“The U.S. tariffs haven’t really hurt us,” said Kevin Seol, a trader who exports around 100 used cars a month. “Demand from other countries is strong.”

Experts believe higher U.S. tariffs on new cars may actually drive up global car prices, pushing more buyers toward cheaper used options. In fact, in the first half of the year, South Korea sold more second-hand cars than new ones to the Middle East, while sales to Russia rose 40 percent.

Demand from Russia has spiked since the war in Ukraine. Japan limited its car sales to Russia in 2023, and South Korea added restrictions in 2024, but smaller used vehicles continue to reach the market through Central Asian countries like Kyrgyzstan.

Despite Syria’s recent ban on used car imports, South Korea’s exports are still expected to hit record levels this year. Government figures show that used cars, along with cosmetics, are among the fastest-growing export industries for small and medium-sized businesses.

But infrastructure is struggling to keep up. Export hubs like the one in Incheon are little more than dirt fields with temporary offices. “In summer, the mud is so bad buyers can hardly walk to inspect the cars,” said Park Young-hwa, who heads the Korea Used Car Export Association.

Lawmakers are now pushing for reforms, including new rules to register exporters and the creation of proper facilities.

“Used cars have already become one of our country’s key export items,” said Democratic Party lawmaker Heo Jong-sik. “It’s time for the government to manage and support the industry properly.”