[THE INVESTOR] The government is discussing the possibility of allowing class actions for consumers who have suffered damage related to processed food.

According to a spokesperson for the Ministry of Food and Drug Safety on June 26, the ministry has presented a report on possible ways to implement class actions for these consumers. The Food Safety Ministry has legal jurisdiction over matters related to these products.

Currently, class action is only permitted in cases related to finance.

“We cannot comment on any specifics related to the report, but we do know that class actions have been discussed,” the spokesperson said. The proposed plan was presented to a consultative body that is acting as the de facto transition team for President Moon Jae-in’s administration.

Permitting consumer class actions was part of Moon’s pledges during the presidential campaign. There have been more demands for class actions and punitive damages for consumer-related damage following several high-profile cases including the humidifier sanitizer scandal that linked Oxy Reckitt-Benckiser to over a hundred deaths.

If the ministry’s proposal is implemented, it may open the door to allowing class actions in other consumer-related industries in the future.

However, its introduction faces fierce opposition from corporations, who run the risk of paying massive damages if they lose a class action suit.

Consumer groups have long argued against the current system, which requires consumers to file individual lawsuits in order to receive compensation, which they say is inefficient and expensive.

Under the current government structure, matters related to consumer conflicts fall under the jurisdiction of the Fair Trade Commission. Kim Sang-jo, the newly named FTC chief, has publicly spoken in favor of changing the law to permit class actions.

In a written statement to the National Assembly during his confirmation process, Kim stated that the industries that allow class actions should be expanded, focusing on industries that have the potential to cause low-cost damage to a large number of consumers.

 By Won Ho-jung/The Korea Herald (hjwon@heraldcorp.com)