Introduction of 'Jibdansosongje' in All Fields... "Possible if There Are 50 or More Victims"

[Asia Economy Reporter Baek Kyunghwan] The 'class action system,' which had been limited to the securities sector until now, will be expanded to cover all industries. In particular, it will be applied retroactively to cases that occurred before the law's enforcement, and if a plaintiff wins a damages lawsuit involving more than 50 victims, all victims except those who opted out will benefit.

On the 23rd, the Ministry of Justice announced that it will give public notice on the 28th of the 'Class Action Act' and the 'Commercial Act Amendment,' which expand the introduction of the class action system and punitive damages system.

First, the 'Securities-Related Class Action Act,' which was limited to securities-related cases, will be abolished, and a new class action law applicable to all fields will be enacted. The class action system allows all victims to be compensated through a lawsuit filed and conducted by some victims as representative parties. The government introduced the class action system limited to the securities sector through the Securities-Related Class Action Act in 2005.

With the introduction of the new class action system, all damages claims involving more than 50 victims will be subject to the class action system. Accordingly, the judgment will be effective for all victims who did not file an exclusion notice.

For example, in the recent domestic case of automobile manufacturers' emissions manipulation, compensation was made in the United States, where the class action system is common, and in Germany, where it was introduced by special law, but no compensation was made domestically. A Ministry of Justice official explained, "Although modern society has the potential for harm to many, there are institutional and practical limitations that make individual recovery difficult. Additionally, it was necessary to suppress incentives to seek profits through illegal acts during commercial activities."

The Ministry also proposed introducing a punitive damages system into the Commercial Act rather than individual laws. If a merchant intentionally or through gross negligence causes damage to another, they are liable to compensate up to five times the damage. However, if the merchant proves that the damage was not caused by commercial activities, the application is excluded.

However, if the merchant proves that the damage was not caused by commercial activities, the punitive damages system does not apply. Lawsuits can be filed only for damages caused by acts committed after the law's enforcement. The Ministry of Justice expects that "with this legislation, efficient victim relief and prevention will be achieved, improving corporate responsible management levels, thereby creating a fair economic environment and a foundation for sustainable innovative growth."

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