SK Rent-a-Car's Bold Vision: Revolutionizing Korea's Used Car Market with Auto Auction Platform

Game-Changing Launch: Korea's Largest Auto Auction Opens in Cheonan

Did you know that SK Rent-a-Car just opened what could be Korea's most revolutionary used car facility? On July 15th, 2025, the company unveiled its massive Auto Auction complex in Cheonan, Chungcheongnam-do, marking a pivotal moment in Korea's automotive industry. This isn't just another auction house – it's a comprehensive platform that CEO Lee Jung-hwan boldly claims has the potential to grow 10 times larger than its current scale.

The facility spans an impressive 89,000 square meters (approximately 27,000 pyeong) across 4 floors above ground and 4 floors below, with parking capacity for 3,000 vehicles simultaneously. This makes it the largest used car auction facility in Korea, addressing a critical gap in the market where approximately 75% of major auction houses are concentrated in the Seoul metropolitan area. The Cheonan location strategically positions SK Rent-a-Car to serve as a nationwide distribution hub, reducing logistics costs and improving accessibility for auction participants across the country.

What sets this facility apart is its status as Korea's first one-stop auction platform, integrating everything from vehicle auctions to post-sale commercialization services under one roof. The company invested heavily in advanced infrastructure, including AI-powered exterior assessment systems, VR photography capabilities, undercarriage scanning technology, and live broadcast auction services. These technological innovations represent a significant leap forward in addressing the trust and information asymmetry issues that have long plagued Korea's used car market.

Revolutionary Technology: AI and VR Transform Car Inspections

The technological backbone of SK Rent-a-Car's Auto Auction represents a paradigm shift in how used cars are evaluated and sold in Korea. The facility features an Inspection Studio where professional presenters conduct live broadcasts, showing not only the exterior and interior condition of vehicles but also demonstrating key features and identifying any issues in real-time. This two-way communication system allows auction members to participate effectively without physically visiting the location, making the process more efficient and convenient.

CEO Lee Jung-hwan emphasized the importance of transparency in building market trust, stating that customers can now see and hear everything, including engine sounds, to make informed decisions. The advanced diagnostic equipment goes beyond traditional inspection methods – the facility can even show customers the undercarriage condition through video, along with specialized processes for removing bacteria and odors. This level of detail represents what Lee calls a complete redesign of the used car market, transforming it from a lemon market into a trust-based system.

The technology infrastructure supports the facility's ambitious goal of handling over 100,000 vehicles annually in its first year of operation. With plans to expand to 200,000 vehicles within several years through external vehicle acquisitions and satellite hub operations, the technological foundation must be robust enough to handle this massive scale. The integration of AI-powered systems ensures consistent, objective vehicle assessments while the VR and live streaming capabilities democratize access to detailed vehicle information for buyers nationwide.

Strategic Asset Utilization: The Circular Economy Model

SK Rent-a-Car's Auto Auction isn't just about selling cars – it's about creating a sophisticated circular economy that maximizes asset value throughout a vehicle's lifecycle. The company currently manages approximately 200,000 vehicles based on licensing capacity, providing a stable supply of 3-6 year-old vehicles that are most preferred in the used car market. About 80% of the vehicles offered through the auction are corporate and long-term rental vehicles that SK Rent-a-Car has directly managed and maintained, ensuring systematic maintenance history and higher reliability.

The strategic approach involves a carefully orchestrated process where vehicles complete their initial 4-year rental period before entering the Auto Auction system. Those vehicles in good condition after servicing at the PROOV Station are reintroduced as used rental car products, targeting the growing market of customers who need vehicles but find new car purchases or rentals financially burdensome. This used rental market has seen significant growth over the past 2-3 years, representing a practical alternative for budget-conscious consumers.

The circular model extends beyond simple remarketing. SK Rent-a-Car analyzes vehicle performance, pricing, and customer purchase journeys using data analytics, then commercializes and reintroduces vehicles to the market in optimized forms. This data-driven approach to vehicle lifecycle management represents what CEO Lee describes as a unique strategy that only rental car companies can implement effectively. The company's used car sales currently account for approximately one-third of its total revenue of about 1.6 trillion won, highlighting the significant economic impact of this circular approach.

TagoBuy Service: Revolutionizing Used Car Ownership Experience

One of SK Rent-a-Car's most innovative consumer-facing initiatives is the TagoBuy service, which fundamentally changes how Koreans can experience and purchase used cars. Originally launched in 2022 as an industry-first concept, TagoBuy allows customers to rent SK Rent-a-Car's directly managed used vehicles for up to 12 months before deciding whether to purchase them. This try-before-you-buy model addresses the core trust issues in Korea's used car market by giving customers extended hands-on experience with vehicles before making long-term commitments.

The service underwent significant renewal in 2025, with the company expanding the vehicle age criteria from under 3 years to up to 5 years, providing customers with more affordable options and broader selection. The renewed TagoBuy service offers vehicles at approximately 10% below market price, while maintaining strict selection criteria including accident-free history and under 90,000 kilometers of accumulated mileage. All vehicles come with comprehensive maintenance history documentation, ensuring transparency that customers highly value.

The economic benefits are substantial for consumers. According to SK Rent-a-Car's analysis, customers can save up to 4 million won over one year by using TagoBuy to test-drive and then purchase a vehicle compared to directly buying a used car. The rental payments made during the trial period are partially deducted from the purchase price, creating a flexible structure that combines trust with economic rationality. The initial relaunch focuses on 100 Hyundai Grandeur vehicles, chosen based on high customer preference data from the company's used car long-term rental service.

Market Impact and Industry Transformation

SK Rent-a-Car's Auto Auction launch comes at a crucial time when Korea's used car market is experiencing rapid transformation. CEO Lee Jung-hwan projects that the mobility aftermarket represents approximately 150 trillion won annually, with potential for 10-fold growth in the coming years. The company's integrated approach addresses fundamental market inefficiencies that have hindered growth, particularly the trust deficit caused by information asymmetry between sellers and buyers.

The facility's impact extends beyond SK Rent-a-Car's immediate business interests. Located in Cheonan, the Auto Auction helps address the regional imbalance in Korea's used car auction infrastructure, where the vast majority of facilities are concentrated in the Seoul metropolitan area. This geographical diversification is expected to reduce logistics costs for auction participants while improving accessibility for regional dealers and buyers. The Chungcheongnam-do government anticipates significant economic benefits, including job creation and urban center revitalization.

Industry observers note that SK Rent-a-Car's model could set new standards for used car distribution in Korea. By controlling the entire process from vehicle acquisition through final sale, the company can ensure consistent quality and transparency that has been lacking in the fragmented traditional market. The success of this model could influence other major players in Korea's automotive industry to adopt similar integrated approaches, potentially leading to broader market consolidation and professionalization.

Future Expansion and Brand Strategy

Looking ahead, SK Rent-a-Car has ambitious plans to expand its Auto Auction platform into a nationwide network. The company intends to establish satellite hubs in the Seoul metropolitan area while strengthening partnerships with regional industry players, including the Chungcheongnam-do Automobile Sales Business Association. This cooperative model aims to create a win-win situation where SK Rent-a-Car provides high-quality vehicles with transparent management history while association members contribute diverse inventory to enhance auction activities.

The expansion strategy includes developing advanced diagnostic services for future automotive trends, particularly electric vehicle assessment and battery evaluation capabilities. As Korea's automotive market increasingly shifts toward electric vehicles, SK Rent-a-Car's early investment in specialized EV diagnostic infrastructure positions the company to capture emerging market opportunities. The company's technology-forward approach ensures that its platform can adapt to evolving automotive technologies and changing consumer preferences.

Regarding brand strategy, CEO Lee Jung-hwan addressed speculation about potential name changes following SK Group's divestment of SK Rent-a-Car to Affinity Equity Partners (AEP) in late 2024. He emphasized that the SK brand carries significant trust value and that maintaining brand continuity is crucial for customer confidence. The company plans to retain the SK Rent-a-Car name for at least one year, with any future changes to be implemented gradually and strategically to minimize customer confusion. This approach reflects the company's understanding that brand trust is fundamental to success in both rental and used car markets.