[Alpha Biz= Paul Lee] Seoul, September 24, 2025 – Korea’s top two rental car companies, Lotte Rental and SK Rent-a-Car, are rapidly expanding into the cargo truck leasing business, raising concerns that they are exploiting regulatory loopholes in the Financial Consumer Protection Act.



According to financial industry sources, the two companies have been actively participating in competitive bids for cargo truck leasing contracts since early this year, targeting models such as the Hyundai Porter, Kia Bongo, and Hyundai Staria vans.



Regulatory Concerns

Under Korea’s Specialized Credit Finance Act (SCFA), cargo truck leasing is permitted for firms registered as financial lessors.

However, rental car companies like Lotte Rental and SK Rent-a-Car are registered only as rental operators, not as financial lessors.

As non-financial firms, they are not required to include financial consumer protection clauses in contracts.

Industry officials argue that this creates a form of “shadow leasing,” effectively allowing the companies to operate like capital finance firms without being subject to the same oversight.




A former financial regulator noted:

“Long-term rentals and leases are essentially similar in nature, yet they are regulated very differently. This inconsistency raises questions about fair competition and consumer protection.”




Market Impact

The long-term vehicle rental revenue of Lotte Rental and SK Rent-a-Car was estimated at around KRW 2.3 trillion in 2024, underscoring the scale of their operations. Analysts warn that unless regulators clarify boundaries, the expansion of cargo truck leasing by rental firms could blur the line between rental services and financial leasing.

 

 

 

 

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