Class Action Law Hearing... Ruling and Opposition Parties Clash Over Retroactive Application

Coupang Case Could Be Included Depending on Retroactive Application
Bipartisan Consensus on System's Necessity... Disagreement Over Pace and Method of Implementation

As the National Assembly's Legislation and Judiciary Committee holds a public hearing on the class action law and begins a full-scale review, debate continues over whether the law should be applied retroactively. Tensions are rising in the industrial sector amid expectations that past incidents, such as the Coupang and SK Telecom-KT personal information leakage cases, could also become subject to class action remedies.

On the morning of April 22, the Legislation and Judiciary Committee held a plenary meeting and hosted a public hearing to discuss the enactment of the class action law. The class action system allows a single representative plaintiff to file a lawsuit against the state or a corporation in cases of large-scale damages, and, if successful, the verdict applies to other victims as well. In Korea, this system has been implemented solely in the securities sector since 2005.

Lawmakers agree on the necessity of the system but remain divided over its scope and method of implementation. The ruling party insists that a comprehensive introduction is necessary to strengthen remedies for victims. It argues for expanding the scope to cover all types of damages and introducing an "opt-out" system, where victims are automatically included in the lawsuit unless they explicitly express their intention to be excluded.

At the 3rd plenary session of the National Assembly's Legislation and Judiciary Committee held on the 22nd, Associate Professor Yongsoo Kwon of Konkuk University's College of Global Innovation spoke at the public hearing related to the enactment of the class action law. From left: Yongsoo Kwon, Associate Professor at Konkuk University; Woongjae Byun, Special Professor at Gangnam University; Kyungjin Choi, Professor of Law at Gachon University; and Lawyer Kyungsoo Han. April 22, 2026 Photo by Hyunmin Kim

On the other hand, the opposition party calls for a phased introduction, citing concerns about frivolous lawsuits, increased corporate burdens, and the potential erosion of legal stability. The opposition also urges caution regarding the opt-out system, arguing it could infringe on individual choice. Assemblywoman Na Kyungwon from the People Power Party stated, "There are many differences of opinion regarding the timing and details of the introduction, so at present, I am opposed to the immediate enactment of the bill."

Whether the law should apply retroactively is the biggest point of contention. The ruling party believes that the law should cover past incidents to broaden victim remedies, whereas the opposition argues that such retroactive application would violate the constitutional principle prohibiting ex post facto laws and undermine corporate predictability.

These issues were the main focus of the public hearing on April 22. Associate Professor Yongsoo Kwon of Konkuk University and Professor Kyungjin Choi of Gachon University emphasized the need for careful system design, while Woongjae Byun, Special Professor at Kangnam University, and attorney Kyungsu Han advocated for the active adoption of the class action system.

The Legislation and Judiciary Committee discussed the issue of retroactive application in the bill subcommittee on April 20 but failed to reach a consensus. Following the public hearing, related discussions are set to continue at the plenary meeting in the afternoon. There is also speculation that the ruling party may seek expedited passage. Kim Yongmin, secretary of the Legislation and Judiciary Committee from the Democratic Party of Korea, said, "We will gather opinions through the public hearing and then coordinate additional subcommittee schedules as needed."

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