South Korea

There were hidden charges in the rental car contract.

7 days
Cooling-off period
₩5M
Max fine
Article 6
Unfair terms ban
Article 12
Disclosure duty
The Short Answer

Hidden charges in a rental car contract may violate South Korea’s Act on Regulation of Terms and Conditions and the Act on Consumer Protection in Electronic Transactions if they are unfair, undisclosed, or not clearly explained before agreement.

What the Law Says

South Korean law strictly regulates rental contracts and prohibits hidden or unfair charges in consumer agreements. Two key statutes apply: the Act on Regulation of Terms and Conditions and the Act on Consumer Protection in Electronic Transactions.

The Act on Regulation of Terms and Conditions (ARTC) bans terms that unfairly disadvantage consumers — including hidden fees not disclosed before signing. Article 6 explicitly prohibits terms that 'unreasonably harm the interests of the consumer'.

Under the Act on Consumer Protection in Electronic Transactions (ACPET), businesses must clearly disclose all costs — including optional fees, insurance, fuel policies, and late-return charges — before the consumer agrees to the contract. Article 12 requires 'clear, understandable, and conspicuous' disclosure of all material terms.

If a rental company fails to disclose a charge — such as an administrative fee, GPS rental, or 'cleaning surcharge' — and it was not presented before contract formation, that term may be deemed invalid under both laws.

Statutory Text

Terms and conditions which unreasonably harm the interests of the consumer shall not take effect.

Act on Regulation of Terms and Conditions, s. 6 — Prohibition of Unfair Terms
Statutory Text

The provider of goods or services shall clearly indicate the contents of the standard terms and conditions, including price, payment method, delivery method, and other matters necessary for the consumer to make an informed decision.

Act on Consumer Protection in Electronic Transactions, s. 12 — Disclosure Obligation

What to Do

1

Review your signed contract and compare it with the website/app listing — note any fee not shown before payment.

2

Contact the rental company in writing (email or certified letter) demanding removal of the hidden charge within 7 days.

3

File a complaint with the Korea Consumer Agency (KCA) at https://www.kca.go.kr.

4

If unresolved, request mediation through the KCA or file a claim at the local district court (small claims up to ₩30 million).

Sources

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.