Jeju to Eradicate "Rip-off" Rental Car Fees... Daily Rental Discounts Capped at 60%

Legislative Notice for New Rental Contract Regulation

Prevents Cutthroat Off-Season Competition and Establishes Fair Pricing

Self-Damage Waiver Clearly Defined... Dispute Prevention on Loss-of-Use Fees and More

Jeju Special Self-Governing Province has introduced strong institutional improvements to shed the stigma of so-called "rip-off" rental car fees—caused by sharp price discrepancies between peak and off-peak tourist seasons—and to restore consumer trust. Under the new regulations, daily rental fee discounts will be capped at a maximum of 60%.

Jeju Special Self-Governing Province has introduced a cap on rental fee discounts and other high-intensity system improvements to shed the stigma of overpriced rental cars. This measure is expected to restore tourists' trust and create a fair trading environment from the very first gateway to Jeju. (Photo of the welcome sculpture at Jeju International Airport) Photo by Changwon Park.

On May 27, Jeju Province announced the legislative notice of the “Regulations on Stipulating Car Rental Contract Terms, etc. in Jeju Special Self-Governing Province,” which focuses on stabilizing the rental car pricing system and strengthening consumer rights.

This new regulation is a follow-up measure to the ordinance revised this March. It abolishes the previous cost calculation rules and instead clearly defines the criteria for calculating rental fees, limits on discount rates, and operational standards for the Self-Damage Waiver (rental car insurance) system.

Going forward, rental car companies will be required to calculate costs based on objective evidence such as financial statements and accounting data. They will also be regulated so that discounts on reported rates do not exceed 60%.

This measure is designed to fundamentally block excessive off-season dumping and surprise price hikes during peak seasons. The aim is to prevent cutthroat competition among companies and to establish a reasonable pricing structure.

The introduction of the discount rate cap is seen as a key initiative by Jeju Province to transform the highly volatile rental car market into a “predictable market” and to change the perception of overcharging.

In particular, the regulation will clearly stipulate standards for self-damage waiver deductibles, loss-of-use fees, and coverage scope—issues that have previously been obscured by flexible discount rates and have caused disputes between consumers and companies. This is expected to serve as a practical consumer safeguard by preventing malicious disputes from the digital transaction stage onward.

This regulation has been prepared within the legitimate delegation scope of higher-level laws such as the Local Autonomy Act and the Jeju Special Act, and has already garnered broad consensus within the industry. In a survey conducted by the province last year, the majority of companies agreed on the need to restrict discount rates to stabilize prices, and the industry hopes that the system will be established before the large-scale sports events scheduled in Jeju this September and October.

Jeju Province plans to complete the regulatory and legislative reviews and rule deliberations after the legislative notice period ends on June 5, and to fully enforce the new rules from autumn after a two-month grace period following promulgation.

Samyong Kim, Director of the Transportation and Aviation Bureau of Jeju Province, stated, “Since both business operators and consumers will be trading under the same standards, this will become a turning point for strengthening the external credibility of Jeju tourism.”

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