'Unverified Driver's License' Rental Operators to Face 10x Higher Fines

Fines Up to 5 Million Won
Penalties for Renting Under Borrowed Names
Revised Law to Take Effect in January Next Year

The southbound lanes near Jamwon IC on the Gyeongbu Expressway in Seocho-gu, Seoul are experiencing congestion. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Jiwon] Starting from January next year, car rental businesses that fail to verify driver's licenses or rent cars to unlicensed drivers will be fined up to 5 million KRW.

A new regulation punishing the act of renting vehicles under another person's name will also be established.

The Ministry of Land, Infrastructure and Transport announced on the 14th that it will publicly notify the amendment to the "Passenger Transport Service Act Enforcement Decree," which strengthens the obligation of rental businesses to verify drivers' licenses, for 40 days starting from the 15th.

According to the amendment, first, the fines imposed on car rental businesses that do not verify the driver's qualifications or rent to unlicensed drivers will be increased tenfold compared to the current penalties.

Currently, fines for related violations are 200,000 KRW for the first offense, 300,000 KRW for the second offense, and 500,000 KRW for the third offense, but these will be raised to 2 million KRW, 3 million KRW, and 5 million KRW respectively.

Additionally, borrowing or lending another person's name to rent a vehicle for rental business purposes, as well as mediating such acts, will all be prohibited.

The amendment, which includes penalties of imprisonment for up to one year or fines up to 10 million KRW for violations, is expected to be promulgated within this month.

Along with this system improvement, the Ministry of Land, Infrastructure and Transport will work with local governments to intensively crack down on violations and take measures such as imposing fines. In cases where traffic accidents occur due to violations of rental prohibitions, stricter penalties will be applied.

Eom Myungso, Director General of Comprehensive Transportation Policy at the Ministry of Land, Infrastructure and Transport, explained, "Through this amendment, we expect to eradicate the act of renting vehicles to unlicensed drivers and prevent accidents caused by unlicensed drivers operating rental vehicles in advance."

The amendment is scheduled to be promulgated in January next year after legislative procedures such as regulatory review and review by the Ministry of Government Legislation. If you have any opinions on the amendment, you can submit them by mail, fax, or through the Ministry of Land, Infrastructure and Transport website.