Reasons for Proposal

The current Act prohibits any person other than a motor vehicle scrapping business entity from collecting or purchasing to collect motor vehicles subject to scrapping, or engaging in any acts of intermediation for a motor vehicle scrapping business entity.

In relation to this, since it is difficult for a motor vehicle owner to determine whether the entity constitutes a motor vehicle scrapping business entity which has been registered to run a motor vehicle scrapping business when requesting to scrap a motor vehicle, illegal scrapping mediation activities of scrapping brokers and Internet brokers are prevalent nationwide. Some have pointed out that an institutional improvement is required since illegal scrapping mediation activities continue to inflict damage upon consumers, such as overcharging fees, failing to cancel registration, and leakage of owner's personal information.

Accordingly, the amendment will require the employees of motor vehicle scrapping businesses to indicate their identification to block the illegal collection or arrangement of motor vehicles to be scrapped of unregistered motor vehicle scrapping business entities, and require employees of motor vehicle scrapping businesses to undergo training to comply with legal requirements, thereby establishing a wholesome scrapping order and prevent damage inflicted upon the public from illegal conduct of unregistered motor vehicle scrapping business entities.

Major Provisions

A. Require a motor vehicle scrapping business entity to have employees of motor vehicle scrapping business indicate their identification and undergo training on the requirements in connection with motor vehicle scrapping (Article 58 (5) 3 and 4 newly inserted).

B. Cancel a motor vehicle scrapping business entity’s registration or order the suspension of all or part of the business for a period not exceeding six months if any requirements regarding employee are violated (Article 66 (1) 14 (e) newly inserted).

C. Even for an association composed of motor vehicle management businesses, require the provision of education and training for managers and employees (Article 67 (4), etc.).