The maximum service life for vehicles that can be used as rental cars will be extended to up to nine years, while a per-vehicle mileage cap will be newly introduced.
On the 5th, the Ministry of Land, Infrastructure and Transport said it will preannounce legislation for a revision to the Enforcement Decree of the Passenger Transport Service Act, which extends the service life (usable period) of rental cars by one to two years and limits their maximum mileage, from today through Dec. 14.
Under the revision, the service life for mid-size passenger rental cars will be extended from the current five years to seven years, and for large passenger cars from eight years to nine years. Eco-friendly vehicles such as electric and hydrogen cars will uniformly be subject to a nine-year service life.
The easing measures will also apply when replacing rental cars. Until now, only vehicles within one year of delivery could be newly registered, but the regulation has been eased so that vehicles within two years of delivery can also be registered going forward.
Considering safety concerns from easing the service life, the government introduced a new maximum mileage limit. Micro and small vehicles will be prohibited from operating if they exceed 250,000 kilometers, mid-size vehicles 350,000 kilometers, and large as well as electric and hydrogen vehicles 450,000 kilometers.
The Ministry of Land, Infrastructure and Transport (MOLIT) explained that as advances in automotive technology have improved vehicle durability and safety, easing the service-life regulation is realistic. In fact, the average scrappage cycle for new cars increased from 8.4 years in 2000 to 15.6 years in 2021.
As 97% (1,154 companies) of the rental car industry are small and medium-sized businesses, the Ministry of Land, Infrastructure and Transport (MOLIT) said the measure is expected to reduce the burden of vehicle purchases and help lower rates.
Bae Seong-ho, head of the Mobility Policy Division at the Ministry of Land, Infrastructure and Transport (MOLIT), said, "Through this revision, we can both boost the industry's vitality and enhance consumer safety with mileage limits."