If Car Recalls Are Voluntarily Conducted, Penalties Can Be Reduced by Up to 50%

[Asia Economy Reporter Chunhee Lee] The Ministry of Land, Infrastructure and Transport announced on the 9th that it will publicly notify new enforcement ordinances and enforcement rules containing related provisions for 40 days starting from the 10th to implement the revised and promulgated "Automobile Management Act" as of last February.

Through this revision, the government plans to establish a collaborative system among related agencies for smooth automobile defect investigations. In the future, the Korea Automobile Testing & Research Institute (KATRI) will be able to utilize data from related agencies such as the Ministry of Environment, the National Police Agency, the National Fire Agency, and insurance companies when necessary for investigating automobile accidents caused by defect investigations or suspected defects.

Also, when KATRI receives an instruction for a defect investigation from the Minister of Land, Infrastructure and Transport, it must notify the automobile manufacturer of the investigation target, content, and period within 7 days, and the automobile manufacturer must submit related materials within 15 days to enhance the promptness and transparency of defect investigations.

Additionally, if the Minister of Land, Infrastructure and Transport orders driving restrictions due to repeated fire accidents, the automobile manufacturer must prepare protection measures for owners within 15 days and notify the automobile owners. The protection measures include ▲ the impact on automobiles and traffic safety and precautions if the driving restriction order is not followed ▲ measures to alleviate owner inconvenience due to driving restrictions.

The revision also establishes standards for re-notification of recall measures to improve defect correction rates. If the recall rate is below 70% within 6 months, or if the defect corresponds to reasons for driving restrictions, or defects that may cause serious harm to public safety requiring prompt recall implementation, the Minister of Land, Infrastructure and Transport may order the automobile manufacturer to re-notify the recall. In this case, the manufacturer must re-notify vehicle owners within 30 days via postal mail and mobile text messages.

Incentives to induce voluntary recalls by manufacturers will also be introduced. If a manufacturer confirms non-compliance with automobile safety standards and conducts a recall voluntarily before the government initiates a defect investigation, the fine may be reduced by up to 50%.

The revision specifies the definition of safety defects and the conditions for presumed defects, and stipulates the scope of automobile accident investigations. The current definition of safety defects, defined as defects that interfere with safe automobile operation, is specified as "defects in design, manufacturing, or performance commonly present in automobiles that cause or may cause human injury accidents."

The conditions for presumed defects are also specified as cases where vehicle fires occur repeatedly or where repeated human injury accidents are suspected due to vehicle structure or devices. Automobile manufacturers must submit necessary materials for investigation if the conditions for presumed defects apply, and if they fail to submit, the defect will be presumed.

Furthermore, a new accident investigation system has been established, allowing KATRI to investigate accidents such as fire accidents, human injury traffic accidents, and accidents caused by unintended operation by the driver to determine whether automobile defects exist.

The revision can be viewed on the Ministry of Land, Infrastructure and Transport website, and opinions on the revision can be submitted via mail, fax, or the Ministry’s website.

Yoon Jin-hwan, Director of the Automobile Policy Division at the Ministry of Land, Infrastructure and Transport, emphasized, "Through this revision, defect investigations and automobile accident investigations will be strengthened, and safety will be secured through prompt corrective actions, thereby enhancing public convenience. We will continue to improve the recall system to protect automobile owners and enhance automobile safety."

This content was produced with the assistance of AI translation services.