Experimental Challenge for Collective Consumer Redress in Korea

Abstract

This paper examined two systems for the relief of collective consumer damages which were recently introduced in Korea, together with the class action system that is currently under discussion for enactment. The consumer collective mediation system has its significance in the development of consumer relief system in the sense that it has aimed to facilitate the relief for collective damages by using mediation that is friendly to consumer disputes, but further efforts are needed to improve the system in that the rate of concluded mediations was not high in spite of the last 10-year operation of the system. The consumer organization litigation is the system that grants a consumer organization which meets certain requirements with the right of action to prohibit or suspend the infringement of consumers’ rights and interests. The system is expected to have a positive effect in the aspect of strengthening the market surveillance function by private organizations. However, the requirements are too strict that the utilization rate of the system is not high, which is a problem. In the meantime, as a number of legislative proposals introducing the system of class action have been submitted to the National Assembly, the development of a new system draws attention. Introduction of the class action system should serve as a critical juncture for consumer protection in that it would offer consumers with more options for the relief of collective consumer damages. It remains to be seen how the Korean law will unfold the next chapter for collective consumer redress.