April 27, 2024

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[THE INVESTOR] Korea's Ministry of Land, Infrastructure and Transport on Aug. 14 literally slammed the brakes on BMW by ordering municipal governments to take all recalled vehicles off local roads until they have been inspected. The measure comes after more than 30 cars manufactured by the German carmaker were involved in unprovoked accidents, most of them involving engine fires.

Below is the official government statement. 

Land Minister Kim Hyun-mi delivers government statement on BMW cars on Aug.14.  Herald Business

NATIONAL ADDRESS

Concerns about the safety of BMW cars in Korea are riding high over the latest string of engine fires. We have implemented emergency inspections but out of 106,317 units subject to recalls, 27,246 have not been inspected as of midnight Aug. 13.

As the government acknowledges that one of its prime duties is to keep its people safe, it requests mayors, governors and the head of each “gu” (district) to issue an order to take BMW cars off the road. It also requests them to place the cars under inspection. These requests are based on Article 37 of the Auto Management Law. As of Aug. 15, the government will began taking necessary administrative measures, including notifying the car owners.

The orders take effect immediately after the car owners receive a notification. When the cars undergo inspections, they cannot be used for any other purpose.

We know these measures would cause inconveniences, but we ask for your understanding, for we must prevent further accidents. BMW, for its part, has pledged to do everything in its power to make sure all cars subject to recalls are inspected. We ask at this time to offer additional services, such as free car rentals, should the owners wish.

We also ask BMW to give honest and clear answers to suspicions that it neglected its duties directly affecting peoples’ lives and, or if it tried to cover up spurious actions.

The safety inspection order is the very minimum that can be done to protect our citizens. To address the root causes behind BMW’s faulty cars, the ministry will partner with other government organizations and experts to conduct a fair and thorough investigation.

At the same time, we will pursue legal amendments to improve the effectiveness of the punitive damage system and step up penalties for actions that can be interpreted as trying to cover up misdemeanor or belated recalls.

Last but not least, the government will do its best to resolve this situation as quickly and smoothly as possible.

By Bryan Hong (bhong@heraldcorp.com)