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Bill
[Summary] Amendment to the Motor Vehicle Management Act
PROPOSED BY
Chairman of the Land, Infrastructure and Transport Committee
PROPOSITION DATE
2020-09-23
COMMITTEE
Land, Infrastructure and Transport Committee
RESOLUTION DATE OF PLENARY SESSION
2020-09-24
EFFECTIVE DATE
6 months after promulgation
(This unofficial English-language translation is intended for reference purposes only.)


<Purpose of the bill>

Testing of motor vehicles under the existing Motor Vehicle Management Act focuses on internal combustion engines and other mechanical parts, causing such testing to lag behind fast-developing automobile technologies, particularly the eco-friendly and self-driving functions. Thus, a new set of testing criteria must be stipulated in order to ensure the safety of such vehicles having the latest technologies. In response to the rapid advances in technology, it is also necessary that the government promote research, development, and distribution of automobile-testing techniques and apparatus.

Under the existing Act, when an automobile manufacturer recalls a vehicle that it produced because a defect has been identified in the product, the manufacturer shall notify car owners of the fact via postal mail and a text message. As for notifications of free repair services, however, the Act states that the manufacturer send a notice via postal mail only. Amid such circumstances, this bill seeks to mandate that auto manufacturers inform car owners of details of the defects and their plan for providing repair services by means of text message as well as postal mail.

In addition, this bill intends to revise the current Act in order to more clearly stipulate that a motor vehicle dealer should provide compensation for not fulfilling its duty to give prior notice of matters specified in this Act when selling a vehicle.


<Highlights of the bill>

Article 4-2 (2), subparagraph 4-2, newly inserted

(2) The master plan for motor vehicle policy shall include the following:

1 to 4. (same as now)

4-2. Matters pertaining to testing criteria for motor vehicles with new technology, and the research, development, and distribution of testing technologies and apparatus for such vehicles;


Article 32-2 (4)

Where a motor vehicle manufacturer, etc. conducts a gratuitous repair of a motor vehicle pursuant to Paragraph (1) 1, due to any of the causes specified by relevant ordinance of the Ministry of Land, Infrastructure and Transport, such as a defect originating from the manufacturing process, the motor vehicle manufacturer, etc., shall inform the owner of the motor vehicle of the details of such defect and a plan for gratuitous repair via postal mail and a text message, as prescribed by the relevant ordinance of the Ministry of Land, Infrastructure and Transport, in order that the owner of the motor vehicle can become aware of the details of the defect and the plan for gratuitous repair.

Article 43-3, newly inserted

(1) When the research and development, or distribution of testing technologies and apparatus for motor vehicles featuring new technologies, such as environment-friendly vehicles (as per Subparagraph 2 of Article 2 of the Act on Promotion of Development and Distribution of Environment-Friendly Motor Vehicles) and self-driving vehicles, are needed in order to set new testing criteria, the minister of land, infrastructure and transport may commission a motor vehicle inspection agent as per Article 44 of this Act to carry out such tasks.

(2) When commissioning such research, development, and/or distribution as per Paragraph (1), the minister of land, infrastructure and transport may provide the agent with funds for all or part of the commissioned task within the budgetary limits.

Article 58-3 (1) and (4)

(1) In cases in which a motor vehicle buyer has suffered damages because the motor vehicle dealer failed to notify, or falsely notified, him/her of the matters in each subparagraph of Article 58 (1) in selling or brokering the transaction involving the motor vehicle, the motor vehicle dealer shall provide compensation for the relevant damage. Where a person who has performed an inspection of the performance and condition of a motor vehicle (hereinafter referred to as "inspector of the performance and condition of a motor vehicle") inflicts property damage on the buyer of the motor vehicle in such cases by providing false or erroneous information on the inspection of the performance and condition to the dealer of the motor vehicle, the dealer of the motor vehicle may claim indemnity for such damage from the inspector of the performance and condition of the motor vehicle.
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