Screenshot from Attorney Lee Seung-hwan's Blog

 Table of Contents

1. Software is also a manufactured product

2. Public Systems and Strict Liability

3. Citizen Petition: Amendment to the Product Liability Act Proposed by Hanmi Ilbo

4. Consumer Rights in the Digital Age

5. Legislative Action Guide

Petition for Partial Amendment to the Product Liability Act

Purpose of the Petition

The current Product Liability Act limits the definition of "manufactured product" to "movable property that is manufactured or processed," excluding intangible products such as software, artificial intelligence systems, and digital-based systems from its scope. However, in modern society, software and algorithm-based systems are substantial products that significantly impact citizens' lives, property, and physical well-being.

In particular, system errors in the public sector have led to severe damages, including welfare benefit denials, administrative mistakes, military service omissions, and errors in education and taxation. Citizens are not receiving adequate protection amidst the burden of proof and the irresponsibility of administrative agencies.

Therefore, we petition for partial amendment to the Product Liability Act with the following provisions:

Petition Details

1. Expansion of the Definition of Manufactured Product (Amendment to Article 2, Clause 1)

"Manufactured product" refers to movable property or intangible products provided in digital format (including software, artificial intelligence, and algorithm-based systems) that have been manufactured or developed.

2. Expansion of the Scope of Defects (New Clause in Article 2, Clause 2)

For digital manufactured products, the following shall also be considered defects:

• Bias or errors in algorithm design

• Defects or incompleteness in data training

• Possibility of hacking or information leakage due to security vulnerabilities

• Failure of automatic updates or omission of updates

• Service interruptions due to operational errors in the system

3. Shift in the Burden of Proof (New Clause in Article 3, Clause 2)

For damages caused by digital manufactured products, consumers or victims are not required to prove the existence of a defect. If a plausible causal relationship between the damage and the digital manufactured product is recognized, the manufacturer or provider shall be liable unless they prove no fault.

4. Explicit Application to Public Systems (New Article in the Addenda, Article 2)

This amended Act shall equally apply to digital information processing systems, automated administrative decision systems, and public AI systems operated by public institutions. If these systems are built or operated by external developers or through private outsourcing, the outsourcing company shall also be considered a manufacturer.

5. Effective Date of Amendment

This amended Act shall come into effect on the date of its promulgation.

Technology evolves rapidly, but the law lags behind. The reality where citizens are left unprotected due to errors in public systems or defects in digital services can no longer be ignored.

Hanmi Ilbo is preparing a citizen signature campaign to formally submit this draft legislative petition to the National Assembly.

A law for the rights of the people. Now is the time to create it with our own hands.

Preview of Next Article ④ Consumer Rights in the Digital Age — Is a Legal Definition of "Intangible Damages" Possible?

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