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Biz News Korea(Eng)
Korean legislative mulls easier refund and exchange for lemon cars
- Collected
- 2017.03.07
- Distributed
- 2017.03.09
- Source
- Go Direct
A proposal on revised automobile management regulation dubbed the ‘lemon law’ passed the transportation affairs committee at the National Assembly last month. Lemon refers to a new vehicle with manufacturing defects. Consumer protection laws in advanced markets usually label vehicles as “lemons” if the same problem recurs after multiple repairs and force manufacturers to buy back the flawed vehicles or exchange them.
The legislative will define the period and recurrence of faulty after car purchase in the Korean lemon law.
Authorities are tapping opinions from imported dealers and producers. If the bill passes the National Assembly this month, the lemon provision could go into effect from the second half, industry sources said.
Under the new regulation, when consumers file a complaint, a committee under the transportation ministry comprising of 50 independent experts will look into the claim and mediate on a compensation program for the car maker to follow.
If a car shows the same problem despite two repairs within the first year of purchase, the owner could demand it to be replaced or refunded. The same request could be made if a single repair work took more than 30 days.
The tougher repair and refund regulation could deal a heavier blow to import cars, sources said.
By Woo Je-yoon
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