□ Product liability requirement

○ ① Defects of a product being a cause ② Loss of life, injury or property damage involved (Article 3(1) of the Product Liability Act)

□ Product

○ “Product" means movables which are industrially manufactured or processed (including movables incorporated into another movables or immovable). (Article 2(1) of the Product Liability Act) e.g. airbag, refrigerator motor, a cathode-ray tube.

□ Defect

○ “Defect" means any of the following defects of a product with regard to manufacturing, design or indication or lack of safety ordinarily expected of a product: (Article 2(2) of the Product Liability Act)

  - "Defect in manufacturing" means the lack of safety caused by manufacturing or processing of any product not in conformity with the originally intended design, regardless of whether the manufacturer faithfully performed the duty of care and diligence with respect to the manufacturing or processing of the product.

  - "Defect in design" means the lack of safety caused by failure of a manufacturer to adopt a reasonable alternative design in a situation where any damage or risk caused by the product would otherwise have been reduced or prevented if an alternative design had been adopted.

  - "Defect in indication" refers to cases where damages or risks caused by a product could have been reduced or avoided if a manufacturer had given reasonable explanation, instructions, warnings or other indications on the product but he/she failed to do so.

□ Loss of life, injury or property damage

○ With regard to product liability, the manufacturer’s obligation is about damages to the life, body or property of a person caused by a defect of a product (excluding damages inflicted only to the relevant product). (Article 3(1) of the Product Liability Act)

□ Right to claim for damages

○ Extinctive prescription

  - The right to claim for damages under the Product Liability Act shall be extinguished by completion of prescription if the injured party or his/her legal representative does not exercise the rights of the injured party within 3 years of when damages were made known to the liable party (Article 7(1) of the Product Liability Act).

  - The right to claim damages under the Product Liability Act must be exercised within 10 years from the date on which the manufacturer supplied the product which caused the relevant damages (main section of Article 7(2) of the Product Liability Act).

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