Following  the  introduction  of  the  so-called  “Battery  Certification  System”  and "Battery History Management System,” additional legislations concerning electric vehicle batteries continue to be enacted in succession. Additionally, there is a trend towards further strengthening obligations of manufacturers and sellers regarding automotive safety devices, as evidenced by, inter alia, the mandatory installation system  for  Event  Data  Recorders  (EDRs)  and  proposed legislations  aimed  at preventing sudden unintended acceleration incidents. Furthermore, it is believed that environmentally-friendly  issues  such  as  recycling  need  to  be  taken  into consideration with greater importance in the automotive industry in the future. This newsletter summarizes the contents of major bills that have been proposed or are under committee review, including those mentioned above.

1. Bills on Automotive Safety
Mandatory Installation of Autonomous Emergency Braking Systems  
Proposed Partial Amendment to the Motor Vehicle Management Act (Bill No. 7715, proposed by Lawmaker Ho-young Joo and 9 others)

This bill mandates that automobile manufacturers and sellers install autonomous emergency braking systems that automatically decelerate or stop vehicles when a frontal collision is anticipated. Violators of this obligation may face imprisonment for up to three years or a fine of up to 30 million won.

The bill was proposed on January 22, 2025, and has been referred to the Land, Infrastructure and Transport Committee.

Given that the bill enforces the obligation to install autonomous emergency braking systems through punitive measures for violations, it is advisable for automotive manufacturers and sellers to closely monitor the progress of this legislation.

2. Bills on the Automotive Industry
Permitting the Export of Flood-Damaged Vehicles 
Proposed Partial Amendment to the Motor Vehicle Management Act (Bill No. 7302, proposed by Lawmaker Tae-young Yeom and 12 others)

The current Motor Vehicle Management Act prohibits the export of flood-damaged vehicles or devices fitted to such vehicles, or their sale to exporters (Article 26-2, paragraph 2 of the Motor Vehicle Management Act).

However, the newly proposed bill allows the export of flood-damaged vehicle devices for the purpose of recycling resources, or selling them to exporters upon written notice of the above purpose. Failure to provide such notice may result in the cancellation or suspension of the automotive management business license and may be punishable by imprisonment for up to two years or a fine of up to 20 million won.

The bill was proposed on January 7, 2025, and has been referred to the Land, Infrastructure and Transport Committee.
If passed, this legislation is expected to expand the export market for used cars by allowing the export of flood-damaged vehicles or devices mounted thereon for limited purposes.

Strengthening Requirements for Designation of Green Companies 
Proposed Partial Amendment to the Environmental Technology and Industry Support Act (Bill No. 7352, proposed by Lawmaker So-young Lee and 9 others)

The current Environmental Technology and Environmental Industry Support Act allows  for  the  designation  of  companies  and  business  establishments  as  green companies  which  significantly  contribute  to  environmental  improvement  by improving  "environmental  impact  of  products,"  which  refers  to  the  degree  of environmental impact in terms of pollutant and greenhouse gas emissions, as well as resource and energy consumption throughout the entire process of manufacturing, consuming, and disposing of materials and products (Article 16-2, paragraph 1). The Act also provides for eco-label certification (Article 17, paragraph 1).

Furthermore, companies  are  prohibited  from  engaging  in  unfair  labeling  or  false  advertising regarding the "environmental impact of products" (Article 16-10). 

However,  the  newly  proposed  bill  expands  the  scope  of  environmental  impact assessment by introducing new criteria. It now requires consideration of the degree of  pollutant  and  greenhouse  gas  emissions  as  well  as  resource  and  energy consumption in service provision and overall business operations as well. By allowing designation as green companies or eco-label certification only for companies and business  establishments  that  have  demonstrated  improvements  in  these  newly considered aspects of environmental impact, this bill adopts stricter requirements therefor. Additionally, the bill introduces a provision prohibiting the designation as green companies for companies (including those operating through subsidiaries) that rely on power generation business using fossil fuels, such as coal, oil, natural gas, etc., or on business including extraction, import, processing, and sales of fossil fuels for power generation, for 30% or more of their power generation or revenue. Moreover, business operators, including companies, must adhere to these expanded criteria when engaging in advertising activities.

The bill was proposed on January 8, 2025, and has been referred to the Environment and Labor Committee.

If passed, companies seeking green company designation or eco-label certification will need to reconsider their environmental impact not only in terms of products but also in the processes of their service provision or business operations. They may also need to adjust their reliance on fossil fuels in proportion to their power generation or revenue.

Establishing a Legal Basis for Used Batteries 
Proposed Partial Amendment to the Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles (Bill No. 6573, proposed by Lawmaker Sung-won Kim and 9 others)

This bill introduces a definition for "used batteries" in the Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles, defining them as "batteries from electric vehicles, etc, that have reached the end of their use and are subject to remanufacturing, reuse, or recycling."

The  bill  was  proposed  on  December  17,  2024,  and  has  been  referred  to  the Environment and Labor Committee.
If passed, this legislation is expected to establish a standardized management system for used batteries based on the newly introduced definition.

3. Strengthening the Obligations of Disclosing EV Battery Information
[Related Bills]

In addition to the implementation of the Battery Certification System and Battery History  Management  System,  which  complement  and  strengthen  battery management systems (LIN Mobility Team’s Newsletter, December 26, 2024), further legislations are being introduced to ensure that consumers have transparent access to battery information when researching and purchasing electric vehicles. Recently, the following additional legislative proposals have been introduced:

①   Mandatory   Disclosure   of   EV   Battery   Model   and   Manufacturer Information (Bill No. 6880, proposed by Lawmaker Geum-ju Moon and 12 others):
This bill imposes an obligation on automobile manufacturers and sellers to disclose information about the model, manufacturer, and usage history (limited to reused drive batteries) of batteries for electrical vehicles. Violation of this obligation may result in imprisonment for up to three years or a fine of up to 30 million won.

The bill was proposed on December 24, 2024, and has been referred to the Land, Infrastructure and Transport Committee.
Given that this bill imposes a strong obligation to disclose information about EV batteries by introducing penal provisions, it is crucial to pay close attention to the progress of this legislation.

②  Mandatory Notification of Battery-Related Information When Selling Electric Vehicles (Bill No. 6560, proposed by Lawmaker Yeon-hee Lee and 18 others):

According to this bill, automobile manufacturers and sellers must provide written notification to purchasers of electric vehicles on information such as the capacity,  rated  voltage,  and  maximum  output  of  the  batteries,  as  well  as  the manufacturer, type, and main raw materials of the battery cells. 

Furthermore,  this  bill  introduces  a  provision  to  include  full  lifecycle  history management information related to the safety and performance of EV batteries in the  vehicle  history  management  information  that  the  Minister  of  Land, Infrastructure and Transport may provide to vehicle owners (Article 69-2, paragraph 1 of the Motor Vehicle Management Act).

The bill was proposed on December 17, 2024, and has been referred to the Land, Infrastructure and Transport Committee.

If this bill is passed, companies should note that they will be required to provide battery-related information to purchasers in writing, rather than verbally.
 

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LIN has extensive experience in providing advisory and litigation services within the mobility industry, particularly in areas such as administrative regulations and patents and trade secret disputes related to motor vehicles. Our Mobility Team features attorneys and experts with a distinctive interest and passion for motor vehicles.

Should you wish to learn more about this newsletter or have any other inquiries, please do not hesitate to contact our firm’s Mobility Team: 
 

Tae Joon Bae (tjbae@law-lin.com, 010-8237-8123)
Min Gu Kang (mgkang@law-lin.com, 010-3907-9217)
Ho Yeon Kim (hykim@law-lin.com, 02-3477-6300)
Han Joon Jung (hjjung@law-lin.com, 02-3477-8695)
Jeong Pil Oh (jpoh@law-lin.com, 02-3477-8695)​