The government has decided to slap fines of up to three percent of sales for auto manufacturers that are found to have concealed or scaled down vehicle defects or delayed recalls.

The plan put forth by the Ministry of Land, Infrastructure and Transport was finalized Thursday at a meeting chaired by Prime Minister Lee Nak-yon.

The government has also decided to raise the limit on carmakers' compensation to car owners who suffer serious damages due to vehicle defects from less than three times the damages to between five and ten times.

Automakers will also be required to submit all necessary documents to authorities when the government opens an investigation into a vehicle's manufacturing defect, or otherwise face a penalty of up to ten million won.

The measures to reinforce the recall system in the auto industry have been introduced after the government came under fire for failing to properly handle BMW's recall crisis following a spate of BMW vehicles catching fire.