On the 13th, it was reported that the National Court Administration submitted an opinion that "careful review is necessary" on key provisions of the Democratic Party of Korea's proposed "class action act." In particular, regarding the supplementary provisions that would apply retroactively to past cases, it noted, "There are concerns that disputes could intensify over the relationship with cases already underway or concluded."
A class action is a system in which, in cases where many victims arise, such as personal data leaks, a portion of the victims sue as representatives and the effect of the judgment extends to all victims.
Currently, class actions are operated on a limited basis only in the field of securities, but the Democratic Party intends to expand them to areas related to telecommunications companies, credit card companies, and platform corporations. Earlier, President Lee Jae-myung directly mentioned the Coupang data leak during a work briefing held in Sejong in Dec. last year, saying, "There are more than 34 million victims, so if they don't each file a lawsuit, isn't it that they won't receive compensation?" He added, "We should introduce class actions as well. Please speed up the legislation."
The National Assembly Judiciary Committee began full deliberations by referring 13 bills related to the class action act to the bill review subcommittee on the 8th. The Democratic Party is pushing legislation centered on a bill by Rep. Park Gyun-taek.
The most contentious issue is "retroactive application." The supplementary provisions of Park's bill state that "class actions apply to claims for damages arising from causes that occurred before the law takes effect." In other words, retroactive application would be possible.
Regarding this, the National Court Administration said, "A class action could be filed even when lawsuits by some victims are already underway, judgments have been finalized, or damages have been paid," adding, "There is a possibility that disputes over res judicata (the binding force of a final judgment) and other issues could intensify."
The National Court Administration also offered a "careful review" opinion on how victims participate in class actions. Depending on the participation method, class actions are divided into "opt-out (exclusion filing)" and "opt-in (participation filing)." Under opt-out, unless a person separately files to be excluded, they are automatically included in the lawsuit and bound by the judgment. In contrast, under opt-in, the judgment binds only if a victim explicitly expresses an intent to participate. On the opt-out approach, the National Court Administration said, "There is a possibility that some victims could be included in a lawsuit without being fully aware or be unable to exercise their rights, thereby infringing on the right to trial."
In addition, the National Court Administration presented a cautious view on fully expanding the scope of class actions. It said, "It is realistic to expand gradually, starting with areas where the scope of harm can be identified relatively clearly, such as consumer or personal data fields."
Meanwhile, the bills submitted to the National Assembly require court approval to file a class action and require the court to decide on approval within a certain period. On this, the National Court Administration said, "Given the impact of class actions and the complexity of the review process, provisions that limit deadlines or deem approval should be approached with caution." The Ministry of Justice holds the same view.
Accordingly, the National Assembly Judiciary Committee plans to continue additional discussions, including holding a public hearing focused on contentious issues such as retroactive application and litigation procedures, based on the bill review materials.