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Korean govt to toughen fines for violation of auto certification

Collected: 2016.12.27

Distributed: 2016.12.28

Source: Go Direct

South Korean government will toughen penalties for violation of car certification rules by increasing fine to 5 percent of sales from current 3 percent and upping the maximum fine to 50 billion won ($41.7 million) per problem car model from 10 billion won to ensure consumer protection from false reporting of emissions and other deceits by makers and distributors of cars.

The Ministry of Environment said on Monday that it was revising the Clean Air Conservation Act to require automakers to refund or repurchase problem cars to strengthen consumer rights. The revision is intended to hold carmakers more accountable for their violations and pay compensations to consumers.

The revision will come just a year after the environment ministry raised the maximum fine for car certification violation from 1 billion won to 10 billion won on December 31, 2015.

If the revised rule had applied to Volkswagen, its fine for emission rigging would have gone up to 238.4 billion won from 14.1 billion won and the penalty of 17.8 billion won for falsifying documents would have hit 118.9 billion won.

By Lee Seung-yoon

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