Reasons for Proposal
The existing law provides that if motor vehicles or motor vehicle parts do not meet automobile or part safety standards or have defects and other flaws affecting safe vehicle operation, motor vehicle or motor vehicle parts manufacturers must disclose the relevant facts on the day they are found without delay and take corrective measures.
However, it has been pointed out that the requirements of the law specified as, ‘if they have flaws and other defects affecting safe vehicle operation’ and the time and period for taking corrective measures ‘without delay from the day the defects are found’ are abstract and ambiguous such that there may be differences of opinion between consumer, manufacturer, and the relevant authorities according to circumstances.
Furthermore, if it is unclear whether motor vehicle or motor vehicle parts-related problems that occur are subject to corrective measures, there is no institutional framework for determining them, causing confusion, and even though corrective measures based on investigation and analysis conducted by motor vehicle and motor parts manufacturers are taken for these defects determined to be subject to such measures, it is inevitable that controversy will arise over possible whitewashing of future defects or delays in taking corrective measures due to ambiguity about the time for determination and calculation of the period.
Accordingly, the Act aims to eliminate ambiguity in interpretation by clearly establishing the requirements in such a way that disclosure and corrective measures ‘without delay’ from the day defects are found shall be revised to read “The Minister of Land, Infrastructure, and Transport shall be notified of such defects within 10 days, and they shall be disclosed and corrected within 30 days from the date of notification,” and by newly establishing a system of determination of defects by the Minister of Land, Infrastructure, and Transport at the request of motor vehicle and motor vehicle parts manufacturers, it aims to provide a solid foundation for prompt correction of motor vehicles or motor vehicle part defects and resolution of the controversy over the government’s “foot-dragging” approach, thereby ensuring that consumer interests and people’s safety are promoted.
Details
A. Where there are defects subject to corrective measures, clearly establish that the requirement of ‘without delay’ from the day defects are found shall be revised to read “The Minister of Land, Infrastructure, and Transport shall be notified of such defects within 10 days, and they shall be disclosed and corrected within 30 days from the date of notification” (including the day defects are discovered under paragraphs 4 and 5, hereinafter the same shall apply) (Article 31, paragraph 1)
B. Where the number and ratio of accidents or those of free repair, etc., involving motor vehicles or motor vehicle parts manufactured by motor vehicle manufacturers or parts manufacturers exceed specified limits, allow motor vehicle or part manufacturers to make requests to the Minister of Land, Infrastructure, and Transport as to whether the defects are subject to corrective measures, and empower the Minister to determine the matter and notify it (Article 31, paragraphs 3 and 4)
C. Where motor vehicle or parts manufacturers fail to disclose the defects, take corrective measures, or voluntarily request a determination of the existence of a defect despite the fact that motor vehicle accidents or failures continue to occur, causing controversy, make it obligatory for them to conduct their own investigations and notify the Minister of the results (Article 31, paragraph 5)
D. Authorize the Minister of Land, Infrastructure, and Transport to designate a performance testing agent to conduct investigations at the request of manufacturers for determination of defects; to undertake manufacturers’ investigation of defects on their behalf; and to grant the agent the right to request data submission necessary for investigation or to make on-site inspections (Article 31, paragraphs 7 and 8)
E. Authorize the Minister of Land, Infrastructure, and Transport to impose on the person who revealed defects in his/her own investigation of defects a penalty surcharge of up to 1/100 of his/her sales, and to impose on the person who failed to disclose or take corrective measures for the defects in violation of the Minister’s correction order a penalty surcharge of up to 1/100 of his/her sales and up to a ten years’ sentence of imprisonment or up to a fine of KRW100 million (Article 74 and Article 78)
F. Increase the penalties for the person who violates the current order to suspend the manufacture, assembly, import and/or sale of motor vehicles or motor vehicle parts and replacement parts from a fine of up to KRW10 million to imprisonment of up to 5 years or a fine of up to KRW 50 million (Article 78-2 and Article 81)
