[Bills in Focus] Subcontractor protection and wider application of ‘lemon law’

The Korea Herald republishes a weekly legislative report by native regulation agency DR & AJU LLC to offer the most recent data on payments authorised, proposed, pending and set to be promulgated. — Ed.

Proposed invoice: Partial Modification to the Act on the Promotion of Mutually Helpful Cooperation Between Massive Enterprises and Small and Medium Enterprises

Proposed by Rep. Lee Dong-ju (Democratic Social gathering of Korea)

● There was a recurring challenge the place enterprises request technical information from the contractor previous to finalizing the contract and misuse it. Accordingly, this modification imposes extra substantial penalties on enterprises that misuse the technical information of their contractor earlier than issuing a written settlement. It additionally raises the penalties for non-compliance with enchancment requests or corrective orders relating to unfair practices in consignment and fee transactions. Violators now face imprisonment with labor for as much as two years or a effective not exceeding 150 million gained ($115,100).

Proposed invoice: Partial Modification to the Motor Car Administration Act

Proposed by Rep. Kim Min-ki (Democratic Social gathering of Korea)

● Korea’s “lemon regulation” at present presumes a motorcar to have been faulty on the time of supply if a recurring defect is detected inside six months of supply (the “lemon regulation presumption”), permitting the automobile purchaser to request a substitute or refund. Nonetheless, a research of two,000 arbitration circumstances between 2019 and March 2023 has proven that defects that happen between six months and one 12 months after the acquisition additionally account for a big proportion of the full variety of faulty autos. Subsequently, this modification extends the time-frame for the lemon regulation presumption for motorcar defects from six months to 1 12 months.

Pending invoice: Partial Modification to the Commerce Union and Labor Relations Adjustment Act

Proposed by Rep. Lee Eun-ju (Justice Social gathering)

● The present act has been criticized for limiting commerce union actions and inflicting monetary difficulties for commerce unions and employees as a consequence of its slender definition of employees and industrial disputes. Conversely, the extent of claimable damages ensuing from commerce union actions is excessively broad with no cap on the utmost quantity that may be claimed. This modification expands the protection of the act to incorporate subcontractors, employees in particular employment sorts, freelancers, platform employees, and many others., and prohibits compensation claims in opposition to commerce unions or employees for damages brought on by collective bargaining or industrial actions, until the damages have been brought on by violent and harmful acts.

Promulgated invoice: Common Act on Public Administration

Competent Authority: Ministry of Authorities Laws

● Presently, there are three completely different age-counting programs being utilized in Korea. This has constantly triggered battle and disputes over find out how to outline the age when implementing administrative providers corresponding to social welfare and medical providers. To cut back the pointless prices stemming from such confusion, this act standardizes the age-counting system for many public providers to the worldwide commonplace, the place persons are thought of zero at beginning and switch a 12 months older on the date of their beginning.

Administrative announcement: Partial Modification to the Enforcement Decree of the Depositor Safety Act

Competent Authority: Monetary Providers Fee

● This modification reinforces depositor safety by individually establishing an insurance coverage payout restrict from the payout restrict for normal deposits for deposits intently tied to retirement revenue safety and social safety, deposits of present outlined contribution plans, and particular person retirement pension plans.

For any queries in regards to the payments, contact cr@draju.com.

By Son Ji-hyoung (consnow@heraldcorp.com)