Car Rental Costs On Jeju To Drop By 50% Under Provincial Ordinance Aimed At Stabilizing Fees

 
Rental cars in Jeju Island are set to face tighter controls under a new provincial ordinance aimed at stabilizing fees, the Jeju Special Self-Governing Provincial Council said Wednesday.
 
The ordinance states that rental cars must be discounted up to 90 percent during the off-season. During the peak season, companies must clearly state discount rates and charge accordingly in an effort to manage fluctuating prices and price gouging.
 
 
The provincial government also said that car rental companies will be required to base their rental rates on their financial statements and overall business conditions. The new regulations mean that companies will no longer be able to set rental fees on new vehicles largely based on their market price.
 
A preliminary simulation conducted by Jeju using the new formula found that rental fees would be slashed by as much as up to 50 percent compared to current levels.
 
For example, renting the compact Kia Ray for one day during the summer months at one company costs 200,000 won ($140) but drops to 10,000 to 20,000 won in the off-season.
 
According to the simulation, the company would only be allowed to charge a maximum 100,000 won for the Kia Ray in the peak season.
 
Specific details on the discount cap will be announced later via public notices. 

BY SHIN MIN-HEE [shin.minhee@joongang.co.kr]