Background
Rust appeared in numerous places inside newly purchased imported cars — the steering wheel, beneath the dashboard, at welded joints — only a short time after delivery. Owners who had bought their cars with high expectations came to Changchun in disappointment.
What Was at Stake
The seller could dismiss this as a mere surface problem. The issue was whether rust on a new car could be recognized in law as a "defect" giving rise to the seller's liability in damages.
How Changchun Helped
Acting for the owners, Changchun emphasized that "for a new car, being in pristine condition is itself central to its value, and rust left unaddressed can affect function, safety and exchange value, so it constitutes a defect under the Civil Act."
The court treated rust on a new car as a defect and recognized the seller's liability in damages, with owners receiving awards in the millions of won each. It is a case meaningfully vindicating consumer interests in a legal system where punitive damages are rare. (Outcomes depend on the facts of each case and may differ.)