Some large corporate rental car agents have filed a lawsuit against the province.
Plaintiffs are arguing that the local government’s cap on the number of rental cars on the road infringes property rights without justified compensation.

Mike Laidman reports.

Jeju Province recently announced that rental cars from rental car agents which refused to participate in the rental car quota system will be restricted from driving in Jeju.

[slug] 1,847 aged-rental cars banned from May 8th

A decision to first ban older rental cars from Jeju’s roads was made in an effort to combat the number of registered rental vehicles down.

[slug] Levies up to 100,000 won fine per vehicle

1,847 rental cars from 40 local rental car agencies are subject to the restriction, with a violation leading to a 100,000 won fine per car.

But now big rental car companies that have agencies nationwide and which refused to support the rental car quota system have filed a lawsuit against the province.



Lotte Rental, SK Networks, AJ Rent-A-Car, Hanjin Transportation, and Happy Networks have banned together and taken to the Jeju District Court to overturn the province’s administrative measures.

The plaintiffs argue that the province is infringing on property rights without justified compensation.



Meanwhile, the Jeju Car Rental Association disagrees with the litigation.

Previously, each local rental car agency had made the concession to join the provincial office’s efforts to reduce the number of rental cars on the roads by phasing out their older models.

But the big mainland companies are essentially snuffing out the efforts of the smaller Jeju companies, and so the Jeju Rental Car Association is putting pressure on them to join in.

INTERVIEW
Gang Dong-hun / Representative, Jeju Rent a car Association
Local rental car companies are supporting the quota system to alleviate the congested traffic condition, but the mainland agencies aren’t cooperating. They are even trying to nullify it.
인터뷰)강동훈 제주자동차대여사업조합 이사장
눈물을 머금고 제주지역 도민들과 상생하 수 있는 길을 모색하고자 동참하고 있는데 대기업, 사실상 육지 영업소에서는 그런 경우가 전혀 없습니다. 총량제 자체를 무산시킬려고...

The plaintiff companies together own more than 6,000 cars - 20 percent of the total number of rental cars registered on Jeju.

[Reporter] Mike Laidman
[Camera] Hyeon Gwang-hoon
[CG] So Gi-hoon

If Jeju is going to not only protect its environment and keep its roads clearer, but also hold the large mainland rental companies at bay, then it’s going to need to act sternly and quickly for the sake of the local rental car market.

Mike Laidman, KCTV