SOUTH KOREA Law and Practice Contributed by: Sung Jin Kim, Jay J. Kim, Chunsoo Lee and Joe Kim, Kim & Chang
1. Product Safety 1.1 Product Safety Legal Framework Framework Act on Consumers (FAC) The FAC governs issues concerning product safety. The FAC contains provisions regarding business owners’ (manufacturers, importers, wholesalers and retailers) duties, consumers’ rights and duties, local governments’ duties, and the role of consumer organisations. The FAC applies in the absence of any safety regulations that apply specifically to the product at issue. The FAC is enforced by the Korea Fair Trade Commission (KFTC) and its affiliate, the Korea Consumer Agency (KCA). Framework Act on Product Safety (FAPS) The FAPS provides additional requirements regarding safety investigations and recalls. Both the FAPS and the FAC serve as basic laws on product safety. The FAPS is enforced by the Korean Agency for Technology and Standards (KATS) and its affiliate, the Korean Institute of Product Safety (KIPS), under the auspices of the Ministry of Trade, Industry and Energy (MOTIE). Either the FAC or FAPS may apply, depending on which government agency is responsible for investigating the product at issue. However, in practice, duplicative measures or sanctions do not occur. The Product Liability Act (PLA) See 2.1 Product Liability Causes of Action and Sources of Law . Other laws that provide safety standards for spe - cific product types: • vehicle recalls are governed by the Motor Vehicle Management Act (MVMA) and the Clean Air Conservation Act (CACA);
• electrical products are regulated under the Electrical Appliances and Consumer Products Safety Control Act (EASCA); • food products are covered by the Food Sani - tation Act and the Health Functional Food Act; • pharmaceutical products are governed by the Pharmaceutical Affairs Act; and • medical devices are regulated under the Medical Devices Act. Other product safety statutes are the Special Act on Safety of Products for Children (SASPC) and the Radio Waves Act (RWA). 1.2 Regulatory Authorities for Product Safety FAC To address product safety risks, the KFTC may direct the heads of the relevant central admin - istrative agencies to issue remedial orders. For reference, the KCA handles most of the tasks, under the KFTC’s supervision. Under the FAC, the central administrative agencies delegate recall-related authorities to the mayor or gover - nor of the relevant jurisdiction. They may impose an administrative fine or issue a recall order, or both, if a product defect is likely to place con - sumers at risk. FAPS KATS may conduct safety investigations and issue recall recommendations or orders and impose sanctions for non-compliance. KATS also establishes national safety standards, issues safety certifications, and regulates safety issues for consumer products. The main tasks are handled by the KIPS under KATS. Other Authorities There are several other statutes that apply to specific products, for example, automobiles and
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