Lemon law, available across America as remedy for purchase of cars, goes into effect on Jan.1 in South Korea enabling more consumer protection for repeated after-sales defects on motor vehicles.

According to the Ministry of Land, Infrastructure, and Transport and multiple sources from the automobile industry on Monday, a revised automobile control law will go into effect from January, compelling car manufacturers to provide replacement or refund for cars with less than 20,000 kilometers mileage that show recurring breakdowns in the first year after delivery. A similar legislation dubbed lemon law is in place in the United States, which significantly strengthens the rights and protection of car owners.

Korean consumers, in particular, will be able to receive replacements or refunds if their new cars show manufacturing defects in key component units such as motor, power transfer unit, steering system, and break system despite two times of repair work. Consumers will be eligible to receive refunds or replacements when the same defect occurs four times or more in other non-major units and systems. The revised law will also allow car owners to demand replacement or refund if cumulative repair period exceeds 30 days after one time of after service regardless of the defect shown in major or non-major component sector.

When defects are shown, a consigned committee under Korea Transportation Safety Authority consisting of up to 50 auto experts will arbitrate the issue by requesting car manufacturers to submit documents if necessary and conduct performance tests to check defects.

The transport ministry said that the rights of car owners will improve significantly once the Korean version of lemon law goes into effect.

An unnamed official from the transport ministry said that the upcoming lemon law is significant in that it is legally binding and involves more expertise compared to the present system.

Currently, when defects occur in cars, consumers are required to settle the issue directly with auto manufacturers or seek resolution by filing lawsuits or arbitration by Korea Consumer Agency.

By Moon Ji-woong and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]