Companies that manufacture, import, or distribute products in Korea face liability if those products cause harm to consumers. Korea's Product Liability Act establishes a regime that, in important respects, does not require the injured party to prove negligence, which raises the stakes for foreign brands selling into the Korean market.
The Basis of Liability
Under the Product Liability Act, a manufacturer can be liable for damage to a person's life, body, or property caused by a defect in its product. A defect may be a manufacturing defect, a design defect, or a failure to provide adequate warnings or instructions. Crucially, liability is grounded in the existence of a defect rather than in proof that the manufacturer acted carelessly.
Foreign companies should note that the definition of "manufacturer" extends to importers, and in some situations to sellers who hold themselves out as the manufacturer. This means an importer bringing a foreign product into Korea can be treated as the responsible party even though it did not make the product. Recent amendments have also strengthened the position of consumers, including provisions that can ease their evidentiary burden in certain cases.
Defenses and Risk Management
The Act recognizes defenses, such as showing that the defect could not have been discovered given the state of scientific and technical knowledge at the time the product was supplied, or that the defect arose from compliance with mandatory legal standards. There are also limitation and exclusion periods that bound how long after supply a claim may be brought. Establishing any defense requires careful technical and documentary evidence.
Practical risk management is as important as litigation defense. Robust quality documentation, clear and Korean-language warnings and instructions, traceability records, and appropriate product liability insurance all reduce exposure. Contracts with overseas suppliers should address indemnification so that an importer is not left bearing a loss caused by a foreign manufacturer.
What to Do When a Claim Arises
Respond promptly and preserve the allegedly defective product, design and testing records, and all warnings and labeling that accompanied it. Identify every entity in the supply chain, since allocation of responsibility may depend on contracts and on who qualifies as a manufacturer. Notify your insurer early. Assess whether a recall or corrective notice is warranted to limit further harm and regulatory exposure.
A frequent question from importers is whether they can shift liability back to the overseas factory; contractually you can seek indemnity, but the injured consumer can still pursue you directly in Korea. Another is how long exposure lasts, which depends on the statutory periods running from supply and from awareness of the harm.
Defending a product liability claim demands fast, technically informed action. Attorney Sangbin Min advises manufacturers, importers, and distributors on product liability risk, labeling compliance, and defense of defect claims in Korea. Please contact our office to discuss your situation in confidence.