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Punitive Damages Bill Requires Automakers to Pay Up to 5 Times the Losses

Written: 2018-11-04 14:15:06Updated: 2018-11-04 14:17:59

Punitive Damages Bill Requires Automakers to Pay Up to 5 Times the Losses

Photo : YONHAP News

The government and the National Assembly have produced a bill that requires automakers to pay up to five times the costs incurred from a defective vehicle. 

According to the assembly and the Ministry of Land, Infrastructure and Transport on Sunday, Rep. Park Soon-ja of the main opposition Liberty Korea Party recently proposed a bill regarding punitive damages for automakers.

The bill, jointly created with the transport ministry, includes tougher measures for auto recalls.

The revision bill stipulates that carmakers should pay up to five times the incurred losses of property or life when they fail to take steps to resolve problems even after they notice manufacturing defects in their vehicles.  

In addition, carmakers, not consumers, have to prove their vehicles are not defective.

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