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1 2016

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Product recall policies and their improvement in Korea

Huh K., Choi C.

Management and Production Engineering Review

2016

Vol. 7, No. 4

39--47

This article aims to investigate recall policies for product safety in Korea and make suggestions for future improvements. Problematic issues in current recall policies are reviewed and analyzed. Based on survey results and previous studies, this article discusses the consumer perception of a recall. Consumers tend to regard a recall as a signal of poor quality. Furthermore, regulatory differences and weak penalties remain as obstacles to improving the recall system. Suggestions for the betterment of recall policies are derived from consultations with an expert panel and the application of other appropriate methods. At first, despite an increasing number of recall cases in Korea, it turns out that consumers are not highly sensitive to recalls, although their perceptions are mostly negative. Secondly, regulatory inconsistencies and difference problems are primarily attributable to the existence of many separate rules and regulations by product category. Thirdly, the information concerning recalls is limited, which creates an inefficient environment in which manufacturers are reluctant to voluntarily recall a defective product and consumer participation rates are too low. Therefore, the government should induce consumers to have more positive perceptions of recalls whilst concurrently reinforcing the related rules and regulations in accordance with international standards.