On January 11 (local time), passengers wait for flight departures to resume at O'Hare International Airport in Chicago, Illinois, USA. The Federal Aviation Administration (FAA) ordered a halt to operations due to a computer system failure, paralyzing flights nationwide for the first time since the September 11, 2001, terrorist attacks. According to FlightAware, a flight tracking website, 11,403 flights to and from the United States were delayed or canceled that day. Yonhap News, 2023.01.11. 

 Table of Contents

1. Software is also a manufactured product

2. Public Systems and No-Fault Liability

3. Citizen Petition: The Product Liability Act Amendment Proposed by Hanmiilbo

4. Consumer Rights in the Digital Age

5. Legislative Campaign Practice Guide

Automated National Systems Leave Citizens Helpless

Digital Safeguards are Needed for the Public

In November 2024, Ms. Kim Min-hee (alias) was suddenly classified as a regional subscriber to the National Health Insurance and notified of a premium of hundreds of thousands of won. Although she was employed, the system failed to reflect the job change information in a timely manner. The National Health Insurance Service avoided responsibility, stating, "It was a system delay, not a staff error."

This case is not uncommon. There are also elderly individuals living alone who were excluded from welfare benefits, young men who were double-enrolled for conscription due to errors in military service records, and citizens who mistakenly paid millions of won in taxes due to errors in the real estate holding tax assessment system.

All these damages stemmed from errors in the digital systems of public institutions. However, administrative agencies either deny system errors or, even if they admit them, evade responsibility by claiming "no intent or negligence."

"Unaccountable Automation" Endangers Citizens

Today, public institutions handle almost all tasks, including welfare, administration, military service, taxation, and education, through automated systems. The problem is that the design and operation of these systems are often outsourced to private contractors or handled by internal IT departments, and responsibility for errors is unclear.

This can severely infringe upon the principle of due process in administration, the protection of citizens' property rights, and the principle of equality, all guaranteed by the constitution. Who is responsible for erroneous judgments made by the system? Can victims prove such errors? Currently, there are virtually no legal mechanisms in South Korea to address these issues.

Systems are also Administrative Acts; Laws Holding Them Accountable are Necessary

Administrative acts are required to be lawful in both substance and procedure. Regardless of whether the actor is human or machine, the state must take responsibility for the outcome. Clarity of responsibility is especially crucial as reliance on automated systems increases. This is equally emphasized in the digital administration principles of developed countries such as the United States, Germany, and Japan.

In the United States, when errors occurred in the higher education support system, the federal government shared joint responsibility with the companies contracted for design and operation.

In Germany, when taxpayers suffered losses due to tax system errors, the system design company and tax authorities jointly compensated them.

In Japan, after receiving complaints that a public AI-based system operated in a discriminatory manner, the Ministry of Internal Affairs and Communications acknowledged its own responsibility and took corrective measures.

South Korea Also Needs No-Fault Liability

We are accustomed to the frame of "no liability without intent." However, damages from digital systems occur statistically and repeatedly, even without human malice. These damages are entirely shifted to the citizens.

Therefore, Hanmiilbo Proposes the Following Legislative Measures

1. Principle of No-Fault Liability in the Operation of Public Systems 

Impose liability regardless of intent or negligence if defects in design, management oversight, or renewal delays are proven.

2. Applicability of the Product Liability Act to Administrative Information Systems 

Amend relevant laws so that digital systems can be considered manufactured products.

3. Establishment of Provisions for Joint Liability of Public System Contractors

Include private companies involved in system development, maintenance, and repair within the scope of legal responsibility.

4. Improvement of Administrative Appeals and Class Action Systems for Citizen Damages

Automatic compensation for damages when errors repeatedly occur beyond a certain threshold, without individual victims having to prove them.

A Digital Nation Without Public Accountability is Dangerous

Public systems are the face of the nation itself. If they err and no one takes responsibility, citizens will live in increasing distrust and fear. Digital administration is perfected not by efficiency, but by accountability and trust.

It is now an era where legal responsibility must be imposed on the systems themselves. In Part ❸, Hanmiilbo will disclose the detailed petition and legislative draft for this purpose.

#DigitalAdministration #PublicSystemErrors #NoFaultLiability #CitizenRightsProtection #AIResponsibility #BurdenOfProofShift #HanmiilboLegislativeProposal #eGovernment #PublicITReform #NationalResponsibility

Next Episode Preview: ❸ Citizen Petition: Full Disclosure of the Product Liability Act Amendment Proposed by Hanmiilbo