Dealer Arrested for Selling 268 'Ghost Cars' to Foreigners

Police have arrested a used car dealer who sold hundreds of "ghost cars" to foreigners nationwide. These vehicles, with no registered owner, were operated without mandatory insurance and evaded over 1,000 traffic violations and related fines totaling over 66 million won.

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Mr. K sold ghost cars that we have secured, we plan to issue driving suspension orders and forcibly tow and auction them.

The dealer, identified only as Mr. K (50s), was arrested on charges of violating the Automobile Management Act. Between July 2020 and February of this year, he sold 268 used cars to foreigners without transferring ownership. He also failed to pay 1,056 fines for traffic violations, amounting to approximately 66 million won.

Under the law, car dealers must transfer ownership of a used car to the new owner within 15 days of sale. However, Mr. K allegedly handed over only the vehicles, retaining ownership himself. He reportedly did not properly verify the identities of the foreign buyers and delivered the cars to locations across the country as requested.

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We suspect he committed these crimes for financial gain, but we cannot determine the exact reason as Mr. K is not responding.

The vehicles purchased by foreigners were not insured, had not paid vehicle taxes, and had not undergone mandatory inspections. This was possible because vehicles registered for sale at dealerships are exempt from these requirements, and ownership remained under Mr. K's name. These cars are now considered "ghost cars," their whereabouts and drivers unknown, posing risks of unreimbursed damages in accidents and potential use in criminal activities.

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Recently, the Gyeongnam Provincial Police Agency requested cooperation in investigating illegal activities related to the overall management of commercial vehicles, including unauthorized operation, rental, distribution of ghost cars, and operation without liability insurance.

An investigation of Mr. K's office and home revealed that while he had 290 vehicles registered for sale, he only managed about ten. Hundreds of unpaid fine notices were found at his residence. Police plan to issue driving suspension orders and impound the vehicles, but none have been secured yet. Authorities suspect financial gain motivated the crime, but Mr. K has not provided a clear explanation.

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Although I don't know the specifics, I suspect that Mr. K dealt with foreigners who intended to operate ghost cars while staying in Korea for a short period, to sell old used cars that had not been disposed of for a long time.