Azernews.Az

By Alimat Aliyeva

South Korea will introduce new rules requiring used car dealers to disclose the full cost of a vehicle in advertisements, as part of a government initiative to improve transparency and strengthen consumer protection in the second-hand car market, AzerNEWS reports, citing Korean media.

According to the Ministry of Land, Infrastructure and Transport, the new regulations, which will take effect next year, will require dealers to clearly display the total purchase price of a vehicle, including all mandatory fees, instead of advertising only the base price. The changes are designed to prevent unexpected charges that many buyers currently discover only at the final stage of a purchase.

Consumers will also receive stronger legal protections. If a defect appears during the warranty period, buyers will have the right to request repairs from the seller. In cases where a major component—such as the engine or transmission—develops a serious fault within seven days of purchase, and the repair is considered excessively expensive or time-consuming, customers will be entitled to cancel the sale and receive a full refund.

The government said that an excessive repair burden would generally include repairs costing more than 3 million won (around $2,100), exceeding 30% of the vehicle's purchase price, or taking longer than 30 days to complete.

South Korea's used car market is one of the largest in Asia, with around 2.5 million vehicles changing hands every year. The country also exported approximately 880,000 used vehicles last year. Despite the market's size, consumers have frequently complained about hidden fees, misleading vehicle information, and difficulties obtaining compensation for defects.

As part of the reforms, the government will also introduce mandatory insurance for used car dealers, replacing the current vehicle performance insurance system. The new program is expected to provide broader warranty coverage while reducing insurance costs, giving buyers greater confidence when purchasing a pre-owned vehicle.

Officials say the reforms were developed following discussions at a government policy coordination meeting and are intended to modernize the used car industry. Draft amendments to the relevant laws are expected to be submitted in the coming months, while a dedicated task force will oversee the implementation of the new rules.

The measures reflect a broader global trend toward greater transparency in the used vehicle market, as governments seek to protect consumers and improve trust in second-hand car sales.