In this study, a quantitative review was performed on the mechanical performance, permeation resistance of concrete, and durability of surface-modified coarse aggregates (SMCA) produced using low-quality recycled coarse aggregates, the surface of which was modified using a fine inorganic powder. The shear bond strength was first measured experimentally and the interface between the SMCA and the cement matrix was observed with field-emission scanning electron microscopy. The results showed that a reinforcement of the interfacial transition zone (ITZ), a weak part of the concrete, by coating the surface of the original coarse aggregate with surface-modification material, can help suppress the occurrence of microcracks and improve the mechanical performance of the aggregate. Also, the use of low-quality recycled coarse aggregates, the surfaces of which were modified using inorganic materials, resulted in improved strength, permeability, and durability of concrete. These results are thought to be due to the enhanced adhesion between the recycled coarse aggregates and the cement matrix, which resulted from the improved ITZ in the interface between a coarse aggregate and the cement matrix.