The South Korean government has introduced new consumer protection measures to eliminate hidden fees and deceptive pricing in the used-car market [1].

These regulations aim to increase transparency for buyers by shifting the burden of risk and cost from the consumer to the dealer. By mandating full price disclosure and guaranteed warranties, the state seeks to stabilize a market often criticized for unpredictable pricing and undisclosed vehicle defects [1].

The measures were announced during the 12th National Policy Coordination Meeting, which was chaired by the Prime Minister [1]. The announcement took place on June 6, 2026 [1].

Under the new rules, sellers must display the total price of a vehicle in online advertisements, including all applicable fees [1]. This requirement is designed to block "price tricks" where dealers lure buyers with low initial figures only to add significant costs during the final transaction [1].

Consumer protections have also been expanded regarding vehicle quality. Buyers now have a right to a refund within seven days if a major component of the vehicle fails [1]. Additionally, the government is implementing seller-borne warranty repairs to ensure that buyers are not left with immediate, costly maintenance burdens [1].

To further institutionalize trust, the Ministry of Land, Infrastructure, and Transport is consolidating performance insurance into a mandatory dealer insurance system [1]. The government will also require the annual public disclosure of defect rates and the official designation of trustworthy dealers to help consumers make informed decisions [1].

These rules apply to transactions occurring after the announcement date [1].

“The government is implementing seller-borne warranty repairs to ensure that buyers are not left with immediate, costly maintenance burdens.”

These regulations represent a significant shift toward a regulated, transparent used-car ecosystem in South Korea. By mandating total price disclosure and a short-term refund window, the government is effectively treating used-car sales more like new-car retail, reducing the information asymmetry that historically favored dealers over individual consumers.