The current Act prescribes that in the case of a motor vehicle dealer selling a motor vehicle or brokering the sale of a motor vehicle, the motor vehicle dealer has an obligation to notify in writing the performance and condition upon inspection, etc., of the relevant motor vehicle to the buyer before entering into a contract.

The requirements for assuming liability for damage as a result of a motor vehicle dealer’s failure to provide prior written notice, however, only applies in the case of the motor vehicle dealer brokering the sale of a motor vehicle, such that there is a lack of clarity regarding whether a motor vehicle dealer should assume liability for damage as a result of failure to provide prior written notice when selling a motor vehicle.

Also, according to current requirements for registering modifications to a motor vehicle management business, most modifications excluding minor matters such as changes to executives’ addresses, are required to be registered, such that there has been criticism that these requirements impose an excessive administrative burden on motor vehicle management businesses.

Therefore, this proposal aims to prescribe that according to requirements for registering modifications to a motor vehicle management business, only critical matters prescribed by Enforcement Decree be subject to registration of modifications, and that other changed matters be reported to a relevant administrative agency, and also aims to prescribe that a motor vehicle dealer who sells a motor vehicle shall be liable for damage in the case of a failure to provide prior notice (Articles 53 (1), 58-3 (1) and (4)).

Registration of Motor Vehicle Management Business (Article 53)