The processing speed of consumer dispute mediation cases at the Korea Consumer Agency (KCA) is expected to be shortened from an average of 122.8 days. A provision in the Framework Act on Consumers that allows only 1 of the 5 standing Commissioners (the Consumer Dispute Mediation Commission Chairperson) to preside over the dispute mediation meeting is cited as one of the reasons for the current slow case handling. On the 6th, it was learned that the Korea Fair Trade Commission, the responsible ministry, decided to amend the law so that a meeting can be convened if only two standing Commissioners are present.
A dispute mediation meeting is a quasi-judicial procedure that deliberates disputes between corporations and consumers and issues a mediation decision. When a consumer applies for dispute mediation, the meeting produces an arbitration plan such as "the corporation should pay 100,000 won per consumer." If both sides accept the mediation decision, it has the same legal effect as a court settlement decision. If one side does not accept it, the mediation does not take effect. If either side files a civil lawsuit, the trial proceeds from the first instance.
According to a compilation of ChosunBiz reporting that day, the Korea Fair Trade Commission (FTC) plans to amend Article 63(2) of the Framework Act on Consumers as early as the first half of this year so that the Korea Consumer Agency can hold a dispute mediation meeting when two standing Commissioners gather. This provision includes language that the Chairperson presides over the dispute mediation meeting.
The Korea Fair Trade Commission (FTC) is moving to amend the law because this provision has been cited as delaying the dispute mediation process. Under the Framework Act on Consumers, in principle, the Korea Consumer Agency must complete dispute mediation within 30 days from the date the case is received. However, according to materials the Korea Consumer Agency submitted to the office of People Power Party lawmaker Kim Jae-seop, the average processing period for dispute mediation cases at the Korea Consumer Agency was reported to be 122.8 days as of last year.
Because only the Chairperson among the five standing Commissioners can preside over meetings, the number of meetings held annually is said to be around 30.
Meanwhile, since its establishment in 1987, the Korea Consumer Agency has had a dispute mediation function. If corporations and consumers end up fighting in court due to a dispute, it takes a lot of time and expense, so a procedure was set to first mediate at the Korea Consumer Agency. A mediation decision is made by a majority of those present among 5 to 9 standing and nonstanding Commissioners, with a majority vote of the Commissioners present.