South KoreaThe manufacturer went bankrupt. Can I still claim product?
Yes, you can still claim product liability even if the manufacturer has gone bankrupt, because claims may be pursued against other parties in the supply chain or through bankruptcy proceedings.
What the Law Says
South Korean law allows product liability claims to proceed even when the manufacturer is bankrupt, by shifting liability to other responsible parties or permitting claims within bankruptcy proceedings.
Under the Product Liability Act (PLA), any person who manufactures, imports, or sells a defective product is strictly liable for damages caused by the defect — not just the original manufacturer. This means if the manufacturer is bankrupt, you may pursue the importer, distributor, or retailer instead.
The Civil Act (s. 750) also supports liability for unlawful acts causing damage, and courts may hold multiple parties jointly liable. Bankruptcy does not extinguish your right to claim — it only changes who you may sue and how claims are processed.
Claims must be filed within 3 years from when the victim knew (or should have known) of the damage and the liable party. However, no claim may be brought more than 10 years after the product was delivered — this is an absolute long-stop limit.
If the bankrupt manufacturer’s assets are being administered, you must file your claim with the bankruptcy court within the statutory deadline to be considered among creditors — though product liability claims may receive priority depending on nature and timing.
Statutory TextA manufacturer shall be liable for damages caused by a defect in its product.
— Product Liability Act, s. 4 — Strict Liability
Statutory TextThe right to claim damages shall be extinguished after three years from the time the victim or his/her legal representative came to know of the damage and the identity of the perpetrator.
— Civil Act, s. 766 — Limitation Period
Statutory TextIn any case, the right to claim damages shall be extinguished after ten years from the time the act occurred.
— Civil Act, s. 766 — Long-Stop Limit
What to Do
Identify alternative liable parties (e.g., importer, seller, or distributor) under the Product Liability Act, s. 4.
Gather evidence of defect, injury, causation, and damages (medical reports, purchase records, expert opinions).
File a claim with the bankruptcy court before the creditor registration deadline — check the official notice from the bankruptcy trustee.
If alternative parties exist, file a civil lawsuit within 3 years of discovering harm and the liable party (but no later than 10 years after product delivery).
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.