This article was displayed on the ChosunBiz RM Report site at 3:33 p.m. on Apr. 22, 2026.
The Ministry of Justice has restarted efforts to introduce a class action system. It comes six years after a failed push in 2020. Public opinion has grown in favor of strengthening remedies for consumer damage following last year's Coupang personal data leak. However, the business community is concerned about a flood of lawsuits and increased management burdens, and considerable friction is expected during deliberations in the National Assembly.
The National Assembly's Legislation and Judiciary Committee held a full session on the 22nd and convened a public hearing on the introduction of a class action system. Minister Jung Sung-ho of the Ministry of Justice visited the National Assembly on Mar. 31 and met with the Democratic Party of Korea leadership to request swift passage of the Ministry of Justice's "seven livelihood and safety bills," including the class action system. A public hearing was held three weeks later, accelerating legislative discussions.
◇ Class actions allowed only in the securities sector… push to expand to all areas
Currently in Korea, class actions are limited to the securities sector, such as false disclosures and stock manipulation, under the "Act on Class Actions in Securities" implemented in 2005. The law applied to a 2017 ruling in which investors who suffered losses after investing in Deutsche Bank equity-linked securities (ELS) in 2009 filed a class action and won.
Meanwhile, for general consumer damage cases outside the securities sector, victims have had to individually express their intent to participate in lawsuits, and the effect of a ruling applies only to participants—an opt-in method.
By contrast, the U.S.-style class action system automatically includes all victims in the plaintiff class, and only those who wish to be excluded opt out—an opt-out method.
The government and the ruling party are pursuing a plan to expand the opt-out method to damage suits across the board. A bill to enact a class action law, led by Democratic Party lawmaker Park Kyun-taek, would abolish the existing Act on Class Actions in Securities and allow class actions for all claims for damages. It also includes a retroactive application clause so it can apply to incidents that occurred before the law takes effect.
The direct catalyst for the renewed push is widely seen as last year's Coupang personal data leak. President Lee Jae-myung at the time said, "There are 34 million victims nationwide, but is it right that they cannot be compensated unless they each file a lawsuit?" and publicly mentioned the need to introduce class actions. Ten related bills were submitted to the National Assembly, eight of them after the president's remarks.
◇ Controversy over "legislation targeting Coupang"… debate over retroactivity
The opposition is pushing back, asking whether the legislation targets a specific company. People Power Party lawmaker Na Kyung-won said at the hearing, "If the law targets Coupang and indiscriminately recognizes retroactive effect, it could escalate into a diplomatic issue, which is concerning."
People Power Party lawmaker Gwak Gyu-taek also said, "The argument that retroactivity must be recognized seems to stem from the idea that a specific company should be 'shown the taste of a class action,'" adding, "There is a possibility of an ISDS (investor-state dispute settlement) suit being filed from overseas." Choi Kyung-jin, a professor at Gachon University who attended the hearing, likewise said there is room for foreign investors to raise issues.
If retroactivity is applied, last year's personal data leaks at SK Telecom, KT and Lotte Card could also be subject to it.
Consumer groups and parts of the legal community counter that the concerns are excessive. Attorney Han Kyung-su of the law firm Wimin said, "In civil litigation, the principle is to compensate actual damages, so it is not structured to produce astronomical awards like in the United States."
The "Coalition for Enactment of the Class Action Act," made up of 19 groups including the Citizens' Coalition for Economic Justice, People's Solidarity for Participatory Democracy (PSPD) and Lawyers for a Democratic Society, urged swift adoption, saying, "Korea is the only OECD country that effectively has no class action system."
◇ Business community says "lawsuit costs will surge, corporate activity could shrink"
The business community is on edge. The KEF said when the government pushed its plan in 2020 that "small and venture corporations with weak litigation response capabilities could see their very survival threatened," and the Korea Chamber of Commerce and Industry also called for safeguards against frivolous suits, saying, "If lawsuits surge like in the U.S., it will place a heavy burden on corporate management."
If the bill actually passes, its scope could expand beyond personal data leaks to various incidents that produce numerous victims, such as product defects, financial consumer harm and disputes involving major platforms. While the threshold for victim relief would be lowered, from the corporate perspective, potential litigation risks would increase significantly.
A business community official said, "If class actions are introduced, corporations will inevitably face greater burdens not only for legal advisory expenses to respond to lawsuits but also for strengthening internal control and oversight systems," adding, "We recognize the need to provide relief for victims, but if litigation-centered regulations expand excessively, there are concerns that even normal management activities will be curtailed."
On the National Assembly's legislative notice site, a large share of the 3,959 opinions submitted last month on lawmaker Park Kyun-taek's proposal were opposed. While there is consensus on the need to strengthen remedies for consumer harm, the debate over corporate burdens and retroactive application is intensifying, and friction is expected in the legislative process ahead.