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National Assembly Legislation

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  • Automobile Management Act
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2021-07-02
    • Opinion Submission Deadline : 2021-07-16
Reasons for Proposal

Reason for proposal

The current act lets automobile dealers post the history of automobiles and information on the dealer when advertising automobiles via the Internet and prohibits false or exaggerated expressions and advertisement.

Meanwhile, a sexagenary male person visited an automobile market in Incheon Metropolitan City, having been lured with false advertisement of a secondhand car on the Internet; after confinement and threat by the automobile dealer, he was forced to buy a secondhand car for KRW 7 million even though the actual price was only KRW 2 million and to select an unbelievable option.

Professionals conclude that the basic cause of such accident is the current insufficient control and check of expressions and advertisement of secondhand automobiles on the Internet and assert that solving such problem requires adopting Internet advertisement monitoring similar to the Internet false sale control and supervision system, including systematic supplementation such as establishment of secondhand automobile transaction report centers.

Therefore, the amendment of the current act is intended to establish the order of secondhand automobile markets and protect consumers’ rights/profit by embodying the types of false or exaggerated expressions and advertisement of automobiles prohibited by the current act and adopting an Internet expression and advertisement monitoring system.

Main content

A. Matters to be observed by automobile dealers when expressing or advertising automobiles to be sold or to be mediated are embodied, and punishment in violation of such matters is strengthened to imprisonment for three (3) years or fine of up to KRW 30 million (Establishment of Article 57.3.2 and Article 79.xiv-2).

B. Actions that may wield unfair influences in automobile transactions are added to the prohibited actions of automobile dealers, and administrative regulations and penalty regulations for violation of such prohibition are established (Establishment of Article 57.3.3).

C. An Internet automobile expression and advertisement monitoring system is adopted by the Ministry of Land, Infrastructure and Transport, and the necessary matters are prescribed (Establishment of Article 69.4, Article 84.2.5, and Article 84.2.6).

D. The Minister of Land, Infrastructure and Transport may establish and operate secondhand automobile transaction damage prevention & report centers to prevent the prohibited actions under the current act (Establishment of Article 69-5).

Major Provisions

Article 57, Article 66, and Article 69-4 of draft

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