Advices for car scrap

Must-know when you have to scrap your vehicle

• Only scrap your vehicle in an authorized junkyard
• Vehicle registration, personal identification (resident card, passport, driver license), a certificate of one's seal impression(required only if acting as a proxy of the vehicle owner)
• If you ask unregistered service to scrap your vehicel, not only you will not get a cetification of carscrap takeover, but also you will be liable for tax delinquency and insurance penalty because the cancellation may not be registered properly.
• Legal Basis:[Vehicle Administration Law, Article 13]Acting as a proxy for the registration for cancellation of a vehicle

• Acting as a proxy for the registration fo cancellation of a vehicle
• For the convenience of car owners, upon the car owner's request, junkyard is obliged to act as a proxy for the registration of cancellation. (car owner is liable for the fee to act as proxy)

• Prohibit to neglect a car without permission
• If a car is neglected without permission, he/she will be sentenced to less than 1 year or less than 1 millionKRW of penalty. Automobile will be continually taxed. Not insuring the car will incur a penalty.

• Rejected vehicles for car scrap
• Scrapping vehicles full of wastes without permission and stripped of parts are not allowed.
• Legal Basis:[Vehicle Administration Law, Aticle 80, Provision 3]

Noticeable after car scrap process

• Registration of Cancellation
• After the car scrap, it is required to apply to a registration office for the registration of cancellation and to complete the registration. (Junkyard can act as proxy)
• Once the registration of cancellation is complete, there will be no more automobile tax levied and the responsibly for inspection is lifted.
• Within a month after the car scrap, you should register the cancellation to government office within the jurisdiction or will be liable to fines (500,000 KRW)
• Legal Basis : [Vehicle Adminnistration, Article 84, Provision1-1, Vehicle Management Law, Registration Regulation Aticle 38]

• Refund and Successtion of Insurance Premium
• After the registration of cancellation, a certificate of cancellation can be issued either to receive refund of to succeed to a new car for the amount equivalent to the days left after the cancellation.
• If you wish to get refund, you must submit both the original copy of automobile registration (owner's copy) and a copy of owner's bank statement(front page) to your insurance company.

• Paying Automobile Tax
• After the registration of cancellation is complete, you only need to pay the tax levied on your car for the period of your ownership in June or December. However, if the registratioon of cancellation was in May or November (one month before the payment due of 1st and 2nd istallment), You might be taxed for the entire 6months of tax without reflecting the date of cancellation. If this is the case, bring a certificate of canellation (or orginal registration)and an automobile tax bill to the government office within the jurisdiction to adjust the amount of tax.