Reasons for Proposal
The relevant law provides that the warranty repair period for an automobile shall be three years from the date of sale, or until the mileage reaches 60,000 km, whichever occurs first, whereas the warranty repair period for construction machinery shall be twelve months from the date of sale or until the mileage reaches 20,000 km, whichever occurs first.
Moreover, the applicable warranty repair period varies with construction machinery manufacturers, causing construction machinery owners to suffer from the disadvantage of unfairly and unjustly applied warranty repair.
And where warranty repair is required, automobile manufacturers are also required to notify car owners of the relevant details of defects and warranty repair plans by mail, etc., so that car owners may fully know about them; however, no provision requiring such notification exists with respect to construction machinery, thus causing concerns about the risk of industrial accidents due to manufacturing defects.
Accordingly, the Act aims to extend the warranty repair period for construction machinery to the same level as for automobiles, and to newly insert provisions requiring warranty repair notification, thereby bridging the gap in the warranty repair periods between construction machinery manufacturers, as well as preventing industrial accidents due to defects in construction machinery (Article 20 (2) and (3), Article 44 (2) 6 newly inserted, etc.).
Major Provisions
Follow-up services for construction machinery manufactured (Article 20)