[2023 National Audit] Could the Used Car I Bought Be...? 46,000 Unverified Total Loss Vehicles

There have been concerns raised that unidentified total loss vehicles are being disguised as parts or accident-free vehicles and circulated in the used car market in large numbers.

According to data submitted for the national audit by Cho Oh-seop, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, on the 12th, over the past five years, the total number of total loss vehicles reached 487,909. Among these, 415,936 vehicles were scrapped, 33,232 vehicles were resold, and 38,741 vehicles remained unidentified.

Total loss vehicles refer to cars that are completely damaged and irreparable or whose damage costs exceed the insured value. Typically, this includes flood-damaged vehicles, stolen or lost vehicles, among others.

According to the Automobile Management Act, insurance companies request repair inspections from the Korea Transportation Safety Authority for vehicles that can be repaired, then resell them, while the rest are scrapped. However, over the past five years, insurance companies resold 33,232 vehicles, but the Korea Transportation Safety Authority only conducted repair inspections on 25,420 vehicles, resulting in a discrepancy of 7,812 vehicles, as pointed out by Assemblyman Cho.

Combining this with the previously mentioned 38,741 unidentified vehicles, Assemblyman Cho estimated that the total number of unidentified total loss vehicles could reach 46,553. He stated, "These vehicles are likely being illegally circulated in the used car market disguised as accident-free or being recycled as parts," adding, "While the Korea Transportation Safety Authority, responsible for vehicle safety inspections, remains inactive, the safety and property of the public are being threatened."