Gov't to slap stiff fines on violators of country-of-origin labeling rules

SEOUL, April 23 (Yonhap) -- Stiff fines of up to 300 million won (US$222,000)
will be slapped on those who violate labeling rules that intentionally mislead
consumers about the country of origin of products, the government said Thursday.
The move that will go into effect as of Oct. 23 reflects the need to enhance
market transparency and protect consumer rights, the Ministry of Knowledge
Economy said.
"At present, the maximum limit for fines is set at 30 million won, which had been
criticized for being too small to discourage labeling abuses," Kang Myung-soo,
the head of the ministry's export-import division, said.
He said the latest move reflects stringent requests made by consumer groups and
local companies over the years demanding tougher punitive action.
By hiding the product's origin, retailers, trading companies and manufacturers
could unfairly hike prices, translating into greater profits.
"The rules will cover 54.9 percent of products imported or sold on the market in
accordance with the harmonized systems code, which should cover most farm and
fisheries products and consumer goods," Kang said. There are 1,221 products
listed on the code, of which 671 will be affected by the new rules.
"In effect, the tough measures should permit consumers to make knowledgeable
purchasing decisions and may actually contribute to lower consumer prices," he
said.
The ministry in charge of the country's industrial policies said that additional
measures are planned that would permit the courts to hand out jail terms in
conjunction with fines in the case of serious offenses.
yonngong@yna.co.kr
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