The Korean law on class action lawsuits which went into effect on January 1 2005 is the Securities Class Action Lawsuits Act. As of now, this statute applies only to securities-related claims for damages based on false securities reports and information circulars, false business reports, semi-annual or quarterly reports, use of non-public information, stock price manipulation or negligent auditing by an external auditor. Due to various strict requirements in addition to such limited grounds for the commencement of a class action lawsuit in Korea, this statute has rarely been used. Thus far, only six class action lawsuits have been filed, and even among such lawsuits, not one has progressed to a final decision from the court of first instance. Due to criticisms of this status quo, the National Assembly and citizens' groups have been discussing a complete overhaul of the Securities Class Action Lawsuits Act.
April 24 2014