The Korea Herald

지나쌤

Parliamentary majority supports punitive damages

By Korea Herald

Published : May 31, 2016 - 16:55

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A majority of lawmakers in the new National Assembly have shown support for introducing consumer class action lawsuits and punitive damage compensation, according to a consumer body on Tuesday.

The Korea National Council of Consumer Organizations said that out of the 127 parliament members who responded to its survey, 108 advocated punitive damages.

Punitive damages, also called exemplary damages, are an additional financial sanction placed on guilty defendants who have caused grave financial damage or physical damages to others.
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This extra punishment, aiming to reform the defendant and to deter others from engaging in similar acts, is usually put into effect when basic compensation is insufficient to account for the damage caused.

Lawmakers that opposed its introduction cited a lack of social consensus on the measure, excessive restrictions upon corporate activities and possible breaches of current law.

Also, 121 respondents said that they agreed to the need for consumer class action, according to the KNCCO. There has recently been an increasing call for the legal procedure, in the wake of Japanese automaker Nissan Korea’s allegedly fraudulent claims about the emissions of one of its SUVs, as well as the humidifier disinfectant tragedy that resulted in at least 146 deaths.

Of the survey’s 127 respondents, 122 were affiliated to the ruling conservative Saenuri Party, 61 to The Minjoo Party of Korea, 20 to the People’s Party, and two to the Justice Party. Three were independent lawmakers.

By Bae Hyun-jung (tellme@heraldcorp.com)