In the 22nd National Assembly, a partial revision bill to the Product Liability Act has been proposed that would require manufacturers to prove that there was “no defect” in lawsuits for damages due to defective products. Representatives Heo Young of the Democratic Party and Yeom Tae-young of the same party are representative examples. The People Power Party is also pushing for a revision bill that would ease the burden of proof on consumers, so there is an assessment that a consensus has been formed between the ruling and opposition parties on the need for revision.

According to the National Assembly Bill Information System on the 21st, the ruling and opposition parties have proposed six amendments to the Product Liability Act. The trigger was the family of Lee Do-hyeon (then 12 years old), who died in a suspected sudden acceleration accident in December 2022, who filed a legislative petition on the National Assembly’s National Petition website in June. On the other hand, the industry is opposing the bill, saying that if it is processed, “the fairness of the burden of proof will be damaged and the burden will increase due to excessive litigation.”

○ Proposal of a product liability law that shifts the burden of proof of defects in manufactured products to the manufacturer

The current law presumes that damages are caused by defects if the consumer proves that “the damage occurred while the product was being used normally.” Consumers point out that it is practically impossible for individuals to directly reveal this. Another problem is that there have been no cases in which the Supreme Court sided with consumers in cases of suspected sudden acceleration.

The frequent occurrence of suspected sudden acceleration reports is also the background for the sudden rise of discussions in the National Assembly for the revision of related laws. According to the office of Democratic Party member Yoon Jong-gun, there were 236 sudden acceleration reports submitted to the Korea Transportation Safety Authority from 2017 to June of this year. In addition, the need for discussion is assessed to have increased due to the 'City Hall Station reverse driving accident' that resulted in 9 deaths and the 'Cheongna Benz electric car fire' that occurred on the 1st of this month.

The amendment to the Product Liability Act proposed by Rep. Huh is based on the requirement that manufacturers prove that “damage was not caused by a defect in the product.” The scope of application is also broadly defined to include “products requiring advanced technology,” not just automobiles, but also by presidential decree. This principle of shifting the burden of proof is also specified in the bill proposed by Rep. Yeom of the same party.

The government and the ruling party have also begun to revise the law. On the 23rd, the Ministry of Land, Infrastructure and Transport held a cabinet meeting and passed a revision to the enforcement ordinance of the Automobile Management Act, which presumes that the vehicle is defective if the manufacturer of a vehicle suspected of sudden acceleration does not submit data related to the accident vehicle. Last month, Kwon Seong-dong, a member of the People Power Party, proposed a revision to the Product Liability Act, which presumes that the product was defective at the time of supply if the victim “submits to the court video footage, records, etc. that can be presumed to have caused damage due to a defective product.”

On the other hand, the automobile industry is opposing the revision, saying that it is excessive. An industry insider said, “The introduction of the data submission order has created the burden of having to provide business secrets,” and “If the burden of proof is placed on the manufacturer, it will be a structure where the company will have to shoulder unreasonable lawsuits.” There are also concerns that the revision’s scope of application is limited to automobiles, etc., which require advanced technology, and that it could be a burden on the entire manufacturing industry as determined by the presidential decree.

○ Industry: “Responsibility distribution must be fair”… Business community ‘pays attention’

If the amendment is passed and the burden of proof shifts to the manufacturers, it is expected to have a negative impact on the stock prices of companies related to the automobile manufacturing industry. This includes Hyundai Motors and Kia Motors. The business community is also paying keen attention to legislative trends, as the companies subject to the revised Product Liability Act may be expanded according to the presidential decree. The issue of claiming the right of subrogation to determine the responsibility of the estimated 10,000 to 15,000 auto parts companies is also expected to follow.

In the political world, there are predictions that the revision will not easily pass the National Assembly plenary session. An official from the National Assembly’s Political Affairs Committee said, “The shift in burden of proof was not easy to handle during the 21st National Assembly due to strong opposition from the industry,” and “There is a consensus on the purpose of the bill itself, but the fact that the Political Affairs Committee is not carrying out its work properly is also a problem.”

In the 21st National Assembly, a bill with similar intent and content to the Product Liability Act amendment proposed in the 22nd National Assembly was proposed, but it was scrapped due to the expiration of the term. According to the minutes of the Political Affairs Committee subcommittee meeting held in June last year, the Fair Trade Commission, which is in charge of the Product Liability Act, said, “There is a need for careful review of the impact on the fairness of the distribution of the burden of proof, which is a basic principle of civil litigation,” regarding the shift in the burden of proof.

Another reason why it is difficult to process bills is that the Political Affairs Committee has been closed due to political strife between the ruling and opposition parties since the 22nd National Assembly. The ruling and opposition party lawmakers are clashing over the appointment of the director of the Independence Hall of Korea, which is under the jurisdiction of the Ministry of Patriots and Veterans Affairs, and the death of an official from the National Interest Committee.

However, there is a possibility of discussion on a revision of the law to ease the burden of proof on consumers. Measures such as mandating the installation of pedal video recording devices to confirm sudden acceleration accidents are also being discussed. Regarding this, an official from Rep. Yeom’s office said, “We should also consider measures to refer to exhaust gas color and engine sound,” and “I understand that the People Power Party is also willing to fully cooperate in negotiations for adjustment.”

Reporter Jeong Sang-won top1@hankyung.com