Politics · South Korea · 1 hr ago
Jeju plans changes to rental car discount cap after complaints
Jeju introduced a 60% cap on rental car discounts on September 16 to limit sharp price swings and intense competition.
Before the change, some firms reportedly charged close to 200,000 won a day in busy periods but discounted cars by as much as 80% to 90% in quieter months.
The island says companies have since lowered their listed daily rates, with small cars generally listed in the 80,000-won range and midsize cars in the 90,000-won range.
But customers who relied on deep off-season deals and online coupons may now pay more, because the cap can also limit extra discounts offered through booking platforms.
Jeju had received about 54 complaints by the end of October about suspected violations, including discounts that platforms may add on top of rental firms’ offers.
Rental companies say curbing very low prices can help protect businesses and service quality, while critics argue it cuts consumer savings.
Jeju plans to gather views through the end of the year and revise the rules early next year.
Jeju plans to revise its rental car discount cap rules early next year after complaints about reduced discounts and suspected circumvention.
The cap, introduced on September 16, limits discounts on companies’ reported daily rental rates to 60%.
Jeju says the policy is intended to reduce excessive seasonal price differences and curb destructive competition among rental firms.
Consumers say limits on discounts, platform coupons and points have reduced the savings they can use.
Rental car industry representatives argue the cap supports more sustainable prices and that it is too early to assess its effects.
- Who
- Jeju Province, rental car companies, online booking platforms and consumers.
- What
- Jeju plans to revise rules that cap discounts on reported daily rental rates at 60%, after complaints and suspected cases of extra discounts bypassing the limit.
- When
- The cap took effect on September 16; Jeju plans to amend the rules early next year.
- Where
- Jeju, South Korea.
- Why
- The cap was introduced to narrow excessive peak- and off-season price differences and reduce destructive competition; complaints have prompted a review of how it works.
Consumers concerned about reduced discounts
Rental car industry and supporters of the cap
Discounts and coupons
Consumers concerned about reduced discounts
Limits on discounts, platform coupons and paid points reduce consumer savings.
Rental car industry and supporters of the cap
Extra discounts can bypass the cap, undermining the rules.
Purpose and effects
Consumers concerned about reduced discounts
Consumers want to retain access to low rental prices, especially in the off-season.
Rental car industry and supporters of the cap
The cap aims to curb destructive price competition and support market stability and vehicle service and maintenance.
Jeju began enforcing a rule limiting discounts on reported daily rental rates to 60%.
Jeju had received about 54 complaints concerning suspected violations of the discount cap.
Jeju plans to review improvement measures after gathering opinions.
Jeju plans to amend the relevant rules.
- Discount cap
- 60% of the reported daily rental rate
- Start date
- September 16
- Complaints
- About 54 suspected-violation complaints by the end of October
- Small-car reported rate
- Around 80,000 won per day after the change
- Mid-size car reported rate
- Around 90,000 won per day after the change
- Rule revision
- Planned for early next year
What people are saying
Rental car companies' rental fees do not change, but if even discounts paid for by platforms themselves are restricted, only the benefits consumers enjoyed are reduced.
Can it be considered normal business to rent out a vehicle worth tens of millions of won for 10,000 to 20,000 won a day?
We plan to review improvement measures by the end of the year based on this, and revise the rules early next year.