South Korea mandates owner consent for used car listings to curb fraud

South Korea is tightening regulations on used car sales to combat fraudulent "fake listings." Effective June 3, the revised Automobile Management Act mandates that sellers must obtain prior consent from vehicle owners before listing a car on online platforms. This new rule targets scams where sellers advertise cars they don't own, often to collect down payments.

Used car platform operators will be required to verify owner consent and display this information to consumers. Failure to comply can result in fines of up to 10 million won (approximately $7,300 USD). The Ministry of Land, Infrastructure and Transport stated the goal is to create a more transparent and trustworthy used car market.

Previously, the lack of such a verification process allowed for the listing of other people's vehicles and led to fraud. In response, some platforms like Danggeun have already begun verifying seller ownership. Additionally, dealers must now include essential information such as vehicle history and any liens or encumbrances in their online advertisements, closing loopholes that previously allowed them to omit such details.

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We will actively strengthen the institutional foundation to contribute to the formation of a transparent used car market that consumers can trust.