Mediation for Asiana’s Delayed Flight Case Started

- Consumers can apply for collective disputes mediation thanks to the reform of Framework Act on Consumer of Korea -

    The Consumer Dispute Settlement Commission (CDSC) under the Korea Consumer Agency (KCA) has decided to commence the procedure of collective dispute mediation for the consumers requesting compensation to Asiana Airlines, for it delayed departure of a flight bound for Incheon from Bangkok, Thailand due to aircraft maintenance.

     The commission decided to commence the procedure of collective dispute mediation pursuant to Article 68 of Framework Act on Consumers, since more than 50 passengers suffered the same damage and the core legal issue they consider of the case is the same.

     Accordingly, those onboard the flight apart from the applicants can also participate in the mediation procedure if they submit required documents relevant to the case to the CDSC from 24 October 2016 to 7 November 2016. They can visit and submit, or sent it to the commission’s office. 

    On top of that, consumers are now allowed too apply for collective dispute mediation directly to the CDSC. In the past, they could do it only through the KCA or other consumer groups. However, as the reformed Framework Act on Consumers came into effect from 30 September 2016, the mediations are expected to be more active in the future.

     The CDSC announced that it will boost effectiveness of collective dispute mediations by actively supporting consumers’ litigations if businesses refuse to accept the commission’s decision to mediate such dispute cases.

□ (Purpose of reform) The purpose of reform is to allow consumers directly apply for collective dispute mediation in order to raise effectiveness of consumer damage redress, to boost mediations by giving validity to interruption of prescription of applying for or requesting dispute mediation, and to close any loopholes to improve the existing legal system as a whole.

□ (Extended scope of eligible applicants) Consumers are now included in the parties apply for or request collective dispute mediation along with the central government, a local government, the KCA, consumer organisations, or an enterpriser.

□ (Introduction of interruption of prescription) Interruption of prescription of applying for dispute mediation, or applying for or requesting collective dispute mediation is given validity. Nevertheless, in case where a party accepts mediation or in case where excepting the case where a party does not accept, if the mediation procedure terminates, the interruption of prescription loses validity unless a party files a suit within one month from the day when the procedure terminated.