SEOUL, Oct. 5 (Korea Bizwire) - Penalties for violations of car safety and environmental standards are expected to reach as much as 10 billion won due to the recent Volkswagen emissions scandal. Criticism was brought up that the recent limitation for penalties, currently set at 1 billion won, is too low to have any effectiveness.
According to governor Lee Eon-joo, from the Land Infrastructure and Transport Committee, a revised bill that renews the limit of penalties for the exaggeration of gas mileage from 1 billion to 10 billion will be submitted to the Land Infrastructure and Transport Committee’s traffic law review subcommittee at the regular session of the National Assembly.
The bill will likely have no trouble passing, as the government is also of the opinion that 10 billion won is a suitable limit for penalties. In addition, officials say that the Volkswagen scandal will accelerate the renewal of the bill.
Penalties for environmental standard violations are also set to increase. Govenor Lee Seok-hyun, from the Environment and Labor Committee, announced that a renewed bill for the Clean Air Conservation Act, which suggests increased penalties, will be submitted this week.
Currently the penalty for violating the Clean Air Conservation Act is limited to 1 billion won. Governor Lee Seok-hyun explains that though the 1-billion-won limit is not effective enough to regulate violations, it would be a big blow to the motor industry if there were no limits. So through discussions with the Ministry of Environment, a bill that suggests an increase in the limit of penalties is expected to be submitted. The amount of the limit is not settled yet, but reflecting the 10 billion won limit suggested by the Land Infrastructure and Transport Committee on their renewed bill, it is expected to be close to 10 billion won.
In the meantime, officials from the motor industry are expressing opinions that there should be a reduction in penalties when compensation is paid to customers or the manufacturer takes corrective measures voluntarily, even if the limit is raised.
By Francine Jung (email@example.com)