Jeju Island Announces Extension of Car Rental Business Period After Supply and Demand Adjustment Committee Review, 'Appropriate Number 28,300 Vehicles'
[Jeju=Asia Economy Honam Reporting Headquarters, Reporter Park Chang-won] Jeju Special Self-Governing Province announced on the 20th that it will extend the rental car registration restriction period for two years in accordance with the rental car supply and demand adjustment plan deliberated and resolved by the Automobile Rental Business Supply and Demand Adjustment Committee.
Jeju Province will finalize this on the 21st and announce it through the Jeju Province website and other channels.
Jeju Province plans to extend the rental car registration restriction period for two years from September 21 of this year to September 20, 2024.
As with the previous registration restriction, new registrations and change registrations of automobile rental businesses are restricted under Article 427-2, Paragraph 3 of the Jeju Special Act, and restrictions also include transfer and acquisition reports involving an increase in the number of vehicles at the main office or branch offices within Jeju Province.
However, an exception to the registration restriction is allowed in cases where companies that have completed the vehicle reduction target under the previous supply and demand adjustment plan transfer or acquire all or part of their commercial vehicles.
The appropriate supply scale for rental car supply and demand adjustment is set at 28,300 vehicles, aiming to reduce 1,500 vehicles from the current registered number (29,800 vehicles).
This is based on the results of the "Rental Car Total Quantity System Implementation Effect Analysis Consulting" conducted last December, which analyzed the appropriate number of vehicles as between 28,180 and 30,654 when applying socio-economic indicators including the impact of COVID-19 and the modal share of tourism transportation.
Although there is no legal basis to forcibly reduce the number of vehicles under current law, Jeju Province plans to proceed with sequential vehicle reduction through cancellation of registrations due to legal violations and intends to prepare reduction measures in consultation with rental car companies in the province.
Lee Sang-heon, Director of the Jeju Province Transportation and Aviation Bureau, said, "To adjust rental car supply and demand, we will induce voluntary reduction through the operation of the Automobile Rental Business Self-Guidance Committee and establish market order by eradicating solicitation activities, thereby providing transportation services that satisfy residents and tourists."
Jeju=Asia Economy Honam Reporting Headquarters, Reporter Park Chang-won baekok@asiae.co.kr
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