Jeju Special Self-Governing Provincial Office / Courtesy of Jeju Special Self-Governing Provincial Office
Jeju officials announced Wednesday that the southern island will cap car rental discounts and standardize vehicle damage waivers, a sweeping regulatory effort to stabilize chaotic pricing and curb rising consumer disputes on the popular holiday destination.
Under a legislative notice, rental companies on the island will be prohibited from discounting their registered daily rates by more than 60 percent. The rule, which replaces a decade-old rate-calculation regulation, follows a March amendment to the province’s rental car ordinance.
The move aims to halt aggressive undercutting among the island's many operators, which officials say has fueled a race to the bottom that ultimately compromises service quality and safety. Under the new framework, base rental rates must be anchored to objective financial data, including corporate accounting records and financial statements.
It also addresses the ambiguity of vehicle damage waivers. For the first time, the province will explicitly define available waiver types, deductibles, coverage limits and "lost-use" fees — details often buried in fine print that frequently lead to bitter disputes after accidents. Operators who violate the new standards will face administrative penalties and state inspections.
The intervention follows a year of groundwork.
Provincial officials began consulting with the local rental car association last April and surveyed more than 110 operators over the summer. A majority of businesses supported a discount ceiling, viewing it as a necessary floor to stabilize a volatile market.
Local operators hope the framework is fully implemented before the island hosts back-to-back major events this fall: the 46th National Para Games in September and the 107th National Sports Festival in October.
The province plans to complete its legal review and publish the finalized rule by July. Following a two-month grace period for businesses to adjust, the caps are expected to take effect by early autumn.
This article was published with the assistance of generative AI and edited by The Korea Times.
Source: Korea Times News
