In late 2024, two competing bills were introduced to amend Korea’s Framework Act on Product Safety (“Framework Act”) to provide safety oversight of products purchased directly by consumers from abroad (“Direct Purchase Overseas Products”). The proposed amendments are in response to the rapid growth of online markets owned and operated outside Korea and related consumer safety concerns for Direct Purchase Overseas Products from such intermediary sources. The two bills – one proposed by the Democratic Party (“DP Bill”) on November 19, 2024 and the other by the ruling People Power Party (“PPP Bill”) on December 3, 2024 – are currently being reviewed by the relevant committees of the National Assembly.
Under the current Framework Act, the head of a central administrative agency (e.g., the Ministry of Science and ICT, Ministry of Health and Welfare) has the authority to conduct safety investigations and impose remedial measures (e.g., collection, destruction, or ban on manufacture or distribution of products that pose risk of harm to consumers) on products being distributed in the market, or imported products at the customs clearance stage. However, there are no corresponding provisions for Direct Purchase Overseas Products, which are thus being imported without any safety checks and posing consumer risks (e.g., the presence of harmful substances in excess of the domestic safety standards or accidents related to non-compliance of safety standards).
To mitigate the safety risks posed by Direct Purchase Overseas Products, the main provisions of the proposed bills are as follows.
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1. |
Safety Inspections and Return or Disposal of Non-Safe Products During Customs Clearance |
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Recommendation or Order to Remove Listing of Unsafe Products |
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Publication of Safety Investigation Results |
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4. |
Designation of a Domestic Agent |
Since both the ruling and opposition parties have proposed bills with similar provisions, an amendment to the Framework Act is likely to pass the National Assembly plenary session and be legislated. Such an amendment is expected to spur proactive safety management of Direct Purchase Overseas Products from overseas online markets, which were previously conducted relatively passively due to the lack of sufficient legal basis. In particular, it remains to be seen whether the designation of domestic agents will be included in the revised law.
