The purpose of this study is to present many polices of transportation demand management and ways to institutionalize them in order to actively introduce the total number of vehicles system as a strategy to solve the traffc problems in the Jeju area and protect the environment on Jeju Island. Various measures and polices of transportation demand management as well as the total number of vehicle system are presented. These are considered as long-term policies which need to be applied to the Jeju area. Implementing these policies will need some time to attract the public’s policy compliance and they need to be institutionalized through a variety of ways. Below are the ways to achieve this goal: (1) Introduction of the total number of vehicles system, (2) introducing motor fuel tax on energy consumption, (3) differentiation of parking fees based on types of vehicles, (4) charging for mileage, (5) collecting congestion fees and levying garage option, and (6) managing license plates through auction.