Three Years Since Lemon Law Enforcement... 174 Cases of New Car Exchange and Refund

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[Asia Economy Reporter Yoo Hyun-seok] It has been revealed that there have been about 170 cases of exchanges and refunds carried out under the so-called 'Korean-style Lemon Law' (Revised Automobile Management Act Article 47, Paragraph 2), which requires manufacturers to exchange or refund a newly purchased car if it keeps breaking down.

According to data titled 'Status of Manufacturers Accepting Arbitration Rules for Automobile Exchange and Refund' submitted by the Legislative Research Office to Rep. Jeong Woo-taek of the People Power Party on the 17th, from January 2019, when the Lemon Law was implemented, until last March, over a period of about three years, the number of completed exchanges and refunds under the Lemon Law provisions was 174 cases. Compensation and repairs amounted to 282 cases.

The total number of applications for exchange and refund arbitration was 1,592. Among these, 1,447 cases have been closed. Currently, 145 cases are still under arbitration.

The Korean-style Lemon Law is a system that allows consumers to request a new car exchange or refund from the manufacturer if the same major defect recurs two or more times, or a general defect recurs three or more times, within one year of purchasing a new car (within 20,000 km mileage).

However, since the system lacks enforceability, automobile manufacturers and distributors had to voluntarily apply the relevant legal provisions in sales contracts and inform consumers. This has led to criticism regarding its effectiveness since the early stages of implementation.

In particular, about ten domestic and imported car brands refused to apply the Korean-style Lemon Law and requested revisions to the related regulations. Nevertheless, as of now, three years and three months after the law's enforcement, the number of domestic and imported automobile manufacturers and distributors accepting the Korean-style Lemon Law has increased to a total of 19.

It has been confirmed that not only domestic automakers such as Hyundai Motor Company, Kia, Renault Korea Motors, GM Korea, and SsangYong Motor, but also imported car brands including Mercedes-Benz, BMW, Audi Volkswagen, Volvo, Toyota, Jaguar Land Rover, Honda, Ford, and Tesla have incorporated the revised Automobile Management Act into their contracts and are informing consumers accordingly.

However, it has been identified that vehicles imported from some countries, such as China, are still not subject to the Lemon Law. Rep. Jeong said, "As the number of automobile manufacturers applying the Korean-style Lemon Law increases, even high-priced imported cars are now subject to exchange and refund," adding, "In the mid to long term, all vehicles, including those imported from China, should be included in the exchange and refund system."

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