1.      Reasons for Amendment

The Motor Vehicle Management Act was amended to strengthen management and inspections of used motor vehicle labeling and advertising by specifying the types of false or exaggerated labeling and advertising of used motor vehicles, and introducing an online advertisement monitoring system similar to the control and supervision system for false property sale listings.

Accordingly, this Amendment further specifies the types of false or exaggerated labeling and advertising of used motor vehicles in greater detail, and prescribes organizations to be commissioned with monitoring affairs and thereby ensure efficient monitoring of online labeling and advertising of used motor vehicles.

The Motor Vehicle Management Act was also amended (Act No. 18949; promulgated on June 10, 2022; to be enforced on December 11, 2022) to promote efficient operation of the Committee for Deliberation on Safety and Defects of Motor Vehicles, which deliberates on matters concerning the correction of manufacturing defects in motor vehicles and handles arbitrations for replacement or refund, by prescribing grounds on which to establish subcommittees or sub-groups within the Committee. Accordingly, this Amendment prescribes the establishment and operation of a Manufacturing Defects Subcommittee and Arbitration Subcommittee within the Committee for Deliberation on Safety and Defects of Motor Vehicles, and otherwise addresses and improves upon a number of weaknesses that have emerged from the operation of the current system.

2.      Major Provisions

A. Specify as types of prohibited labeling and advertising of used vehicles any used vehicle that cannot be sold or for which there is no intent to sell, and the concealment or understatement of any information that may significantly affect purchase decisions (Article 13-2 newly inserted))

B. Prescribe that organizations commissioned to monitor online labeling and advertising may be public institutions, government-invested research institutes, non-profit corporations, etc. (Article 14-6 newly inserted)

C. Promote efficient operation of the Committee for Deliberation on Safety and Defects of Motor Vehicles by establishing and operating the Manufacturing Defects Subcommittee and Arbitration Subcommittee within the Committee (Article 9-6 amended, Article 9-7 newly inserted, Article 9-10 amended)