Half of rental car complaints stem from contract disputes, agency warns

The Korea Consumer Agency on Thursday issued a consumer alert warning of rental car disputes ahead of the vacation season.

The agency received 1,438 rental car complaints between 2023 and 2025. The figures rose each year — 408 in 2023, 502 in 2024 and 528 in 2025.

Contract disputes accounted for the largest share at 51.0 percent. Cases involving excessive charges for accident-related costs — such as repair fees, deductibles and vehicle downtime fees — made up 18.8 percent. Complaints tied to the return process, including unexpected charges for alleged procedural violations, accounted for 13.5 percent.

Within contract disputes, 52.4 percent involved companies delaying or refusing to refund deposits after cancellations, or imposing excessive penalties for early termination. Some rental companies included non-refundable conditions in their terms, citing special discount products as justification.

The Korea Consumer Agency advised consumers to carefully review all terms before signing, including cancellation fees, refund policies and vehicle damage waiver systems. It also recommended confirming fuel settlement and other return procedures, and returning vehicles to designated locations to prevent disputes.