S. Korea Expands “Lemon Law” for Cars

In January South Korea will launch a lemon law that enables owners of new cars with chronic defects to exchange their vehicles or get a refund on the purchase price.

The measure amends Korea’s Automobile Management Act. Owners become candidates for compensation if their vehicle requires two major repairs in the first year for such major components as engine, transmissions or brakes, the Korea Herald reports.

Owners also may receive compensation if their older vehicle requires the same repair more than four times and is out of commission for more than 30 days as a result.

The new law requires manufacturers to prove their disputed vehicles are not defective within six months of delivery. Under the previous measure, owners were responsible for proving that a defect existed.

Korea’s Ministry of Land, Infrastructure and Transportation says eligibility for compensation will be determined by a yet-to-be-staffed committee made up of as many as 50 auto industry professionals. The panel will have power to demand documents from carmakers and conduct their own performance tests as necessary.

The ministry adds that a decision by the committee will be treated as a legal judgment. The Korea Herald says carmakers generally support the measure, because it clarifies the rules and produces legally binding results.