*This content was translated by AI.
The government is moving to improve regulations to correct rampant 'dark' fees, substandard inspections, and unfair trading practices in the used car market. The Ministry of Land, Infrastructure and Transport (Minister Kim Yun-deok) finalized and announced the 'Used Car Consumer Protection Measures' on the 6th following discussions at the 12th National Policy Coordination Meeting chaired by the Prime Minister. The domestic used car market is a major industry recording annual transactions of 2.5 million units and exports of 880,000 units in 2025, yet it has been plagued by continuous controversies within the industry.
Reviewing the Used Car Consumer Protection Measures, transparency in used car sales prices has come to the forefront. When dealers advertise used cars on internet platforms, they are now required to display the 'total payment amount,' which includes all fees such as selling fees (management fees), performance insurance premiums, and other chargesin addition to the vehicle price. This measure aims to fundamentally prevent the past practice of consumers having to pay unexpected additional costs after visiting a dealership.
Reliability in performance and condition inspections will be enhanced, and sellers' guarantee responsibilities will be significantly strengthened. To address the substandard inspection record book issues that account for 80% of used car complaints, detailed inspection guidelines will be established. For errors in key items such as flood damage or accident history, no-fault penalties including business suspension will be imposed regardless of intent. In particular, the existing performance insurance for inspectors, whose premiums surged by 2.2 times over the past five years and whose business ratio reached 44%, will be merged into a mandatory insurance for dealers (sellers) as a unified obligation. Through this, the coverage period and scope will be expanded, while actual insurance premium burdens will be reduced by excluding manufacturer warranties.
A refund system for consumer damage compensation will also be introduced. If major vehicle components such as the engine suffer significant defects within seven days of purchase, resulting in repair costs exceeding 30% of the sales price or a repair period exceeding 30 days, consumers will be allowed to rescind the sales contract. Additionally, dealers' defect occurrence rates and loss ratios will be transparently disclosed annually, and excellent businesses will be designated to expand consumer choice.
Furthermore, unfair practices where 'sell my car' platforms shifted losses due to diagnostic errors onto small dealers or restricted their use have been blocked, and standards for actual damage compensation were also established. This system prevents service restrictions on grounds other than dealer fault. New legal grounds for imposing fines on platform companies will be added, and the Minister of Land, Infrastructure and Transport's authority for administrative penalties will also be expanded. The Ministry of Land, Infrastructure and Transport plans to propose amendments to relevant laws by September and activate a detailed task force to implement the measures as soon as possible. Minister Kim Yun-deok of the Ministry of Land, Infrastructure and Transport emphasized, "We will correct outdated practices and systems to create a fair and transparent used car market where consumers can trade with peace of mind and businesses are evaluated fairly."
Following the Ministry of Land, Infrastructure and Transport's recent measures, it appears that the used car industry is assessing the situation and formulating its stance. The Association for Diagnosis Guarantee stated it would express its position later, while a representative from a B2C advertising platform company required to implement mandatory total payment amount display said, "We will need to induce direct input from dealers, but we cannot predict how long it will take for the system to become established." Meanwhile, Kim Pil-su (Prof.) of Daerim University strongly criticized the measures, stating, "It is no different from a declaration of war against the used car industry. It is the tyranny of civil servants who have no understanding of the market situation." Additionally, many used car complex association presidents expressed their bewilderment, saying, "I don't know if they can just go ahead like this."
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*This content was translated by AI.
