Daepo Car Distribution Uncovered by Intensive Investigation...1,928 Vehicles Detected

Shell Company Vehicles Disguised as Ghost Cars: New Methods Identified
Distribution of Total Loss Vehicles, Fraudulent Sales Used to Siphon Off Loan Funds

Police have conducted a focused investigation into illegal vehicles, commonly known as "ghost cars," which are frequently exploited for various criminal activities or are a main cause of unpaid traffic fines. As a result, they identified 1,928 such vehicles and apprehended 380 suspects.

The National Office of Investigation at the National Police Agency announced on July 26 that this outcome was achieved after a five-month investigation that began in February 2026. Of the 1,928 vehicles identified, approximately 600 were subject to administrative action for collecting overdue fines totaling 30 million won.

National Police Agency, Seoul Seodaemun-gu. Photo by Jinhyung Kang

The focused investigation was carried out primarily by the traffic crime investigation teams at metropolitan and provincial police agencies. The main targets of the investigation included operators of shell companies used for ghost cars, illegal distribution activities, and unauthorized operation of vehicles. By category, the largest number of cases involved individuals connected to shell companies—12 suspects (558 vehicles)—who sold cars belonging to dissolved companies without properly transferring ownership or created and distributed ghost cars by submitting false sales applications for dealer inventory vehicles.

There were also 87 suspects (1,107 vehicles) involved in illegal distribution, including those who operated car dealerships without registering with the authorities, registered dealers who engaged in illegal brokering, or those who fabricated sales documents. Additionally, 281 suspects (263 vehicles) were involved in illegal operation of vehicles, such as driving cars with cancelled license plates, operating without transferring ownership, or violating municipal orders to suspend vehicle operation.

Notably, the Traffic Crime Investigation Team at the Seoul Metropolitan Police Agency apprehended four people who distributed 92 ghost cars using the method of submitting false sales applications for dealer inventory vehicles. The Gyeonggi Nambu Provincial Police Agency's team arrested 18 suspects who, after planning their crimes via social network service (SNS) advertisements, distributed 306 ghost cars to undocumented foreign nationals seeking to purchase vehicles. Investigations revealed they had fabricated false sales documents to facilitate ghost car distribution.

By age, suspects in their 60s or older accounted for the majority, with 95 people (25.0%), followed by those in their 50s (78 people, 20.5%), and those in their 30s (71 people, 18.7%). By occupation, self-employed individuals comprised 118 suspects (31.1%), unemployed persons 56 (14.7%), and company employees 38 (10.2%).

Through this focused investigation, police confirmed major methods such as distributing vehicles declared total losses from accidents, disguising sales to siphon off loan proceeds, and selling vehicles owned by dissolved corporations without proper transfer of ownership to secure debt. Based on these examples, the police plan to strengthen intelligence gathering on vulnerabilities in the distribution of ghost cars, such as monitoring online car sale advertisements, and to maintain a year-round enforcement system.

Hong Seokki, Chief of the National Office of Investigation, stressed, "The distribution of ghost cars that can be misused for various criminal activities is a clear violation of public order, and we will respond strictly by maintaining a continuous enforcement system throughout the year."

This content was produced with the assistance of AI translation services.