A recently found a car he liked priced at 5 million won on a used-car platform. At the moment of signing the contract at the actual transaction site, A was taken aback. The contract stated that an additional 1.14 million won would be added, including a 440,000 won seller fee, a 200,000 won brokerage fee, and a 500,000 won performance insurance premium.

B discovered an engine defect shortly after purchasing a used car. The performance inspection report checked when buying the car indicated all functions were normal. When B contacted the dealer, the dealer said they didn't know and simply instructed B to handle it through the performance insurance. When B filed a complaint with the competent local government, B was told there was no legal basis to impose an administrative disposition for an inspection error.

The government will protect used-car consumers by mandating fee disclosure and revising the system so that sellers bear responsibility for defect warranties. If a defect occurs within seven days of purchase, buyers can receive a refund.

The Ministry of Land, Infrastructure and Transport announced its "Measures to Protect Used-Car Consumers" at the 12th National Policy Coordination Meeting on the 6th, stating, "We will improve the used-car market's accumulated low level of trust and unfair practices so that anyone can trade used cars with peace of mind."

First, when a dealer advertises a used car on an internet platform, they will be required to display not only the vehicle price but also the total amount including all fees. According to the Ministry of Land, Infrastructure and Transport, at present, additional fees collected under various headings such as seller, brokerage, and registration application agency can exceed 30% of the sales price displayed on the platform.

Responsibility for defect warranties will be clearly shifted to the dealer. Until now, when a defect was found in a used car for sale, the inspectornot the dealercompensated for repair costs, paid out of the performance insurance in which the inspector was enrolled. Since this performance insurance premium is charged to consumers at the time of sale, the repair costs paid from the performance insurance ultimately fall squarely on consumers.

The Ministry of Land, Infrastructure and Transport plans to integrate performance insurance into a mandatory insurance for dealers, while extending the coverage period and items and reducing the premium burden.

In addition, if within seven days of purchasing a used car a major component such as the engine fails and results in repair costs of 3 million won or more, or 30% or more of the purchase price, or if repairs take longer than 30 days, the used car can be refunded. If histories of flooding, fire, accidents, or recalls are omitted from inspection targets or are disclosed inaccurately, fines or business suspension may be imposed regardless of intent.

The Ministry of Land, Infrastructure and Transport plans to introduce related legislative amendments in September. Minister Kim Yun-Deok said, "The used-car market is a major industry closely connected to people's daily lives," adding, "We will correct the reality in which both consumers and industry workers have suffered due to opaque transactions and unfair practices."