SEOUL, March 4 (Yonhap) -- The South Korean car sharing industry is picking up speed to expand beyond the niche market to go mainstream as the government is set to ease regulations on the industry's operation as a way to curb congestion and pollution.

Short-term, automated car rentals entered the local business scene in 2011 as startup companies joined the global wave of the sharing economy to target tech-savvy youngsters in the densely-populated, highly-networked nation.

Members can preview the cars available and the associated outlets through the Internet and mobile devices. A smart key embedded in a membership card or smartphone application can be used, making pick-up and drop-off simple and convenient. Unlike regular services that rent a car by the day, the car sharing service rents cars by the hour, with insurance coverage included.

According to a survey by the Seoul Institute, a think tank under the Seoul government, 85.5 percent of users were in their 20s or 30s. The greatest usage was during the weekend and around midnight when public transportation is hard to find.