Product Liability and Remedy System

The implementation of Product Liability Act on 1 July, 2002 will usher in a strict liability regime for defective products in Korea. We think that this act will make manufacturers strengthen counter-measures of the safety in design, manufacture, designation and warning of products. And consumers will be able to use much safer products than before. Consequently, the introduction of this act itself will contribute to consumer protection. However, this act is not enough to realize it's legislation object of the remedy of victims without another arrangement of relative systems. The reason is that victims still have much difficulty in the processes of claims for compensation. In order to substantially remedy the damages of victims who are suffered from defective products, the following systems must be arranged. First, there needs the arrangement of fair, easy and speedy dispute resolution systems such as ADR(Alternative Dispute Resolution) or easy judicial proceeding system, because it is thought that the damages by defective products are mostly small claims. Presently there are dispute mediation system of KCPB(Korea Consumer Protection Board) and arbitration of KCAB(Korea Commercial Arbitration Board) as examples of ADR in Korea. And there are judicial arbitration of civil disputes, and small claims court proceeding as easy judicial proceeding systems. Second, there need systems which can save victim's burden of proof on defects, damages and causation. The arrangement of search systems of cause and gathering systems of information on product liability accident and danger