Foreign carmakers are facing renewed pressure to lower their hefty repair costs, with a new bill pending at the National Assembly to allow Korean manufacturers to produce replacement auto parts.

Unlike in other advanced markets such as the United States, Europe and Japan, import car manufacturers here own an exclusive right to supply auto parts through their dealership service centers only.

And this practice has been picked as the main reason why foreign-brand cars have maintained high costs and long wait times for car repairs.

With an aim to slash repair costs for import cars, Rep. Min Byung-doo of the main opposition Democratic Party submitted a revision that would allow local manufacturers to produce cheaper auto parts.

If passed, industry watchers say, the proposed bill could cut auto part prices by almost half of the current level and give consumers more choices for car repairs.

“Despite their soaring sales, foreign carmakers have been inactive in meeting the demand for lowering the repair prices,” said the lawmaker. “The new bill would be a win-win solution for all stakeholders.”

For quality control, Min claimed that a privately owned institution, such as the U.S. Certified Automotive Parts Association, should oversee product quality of replacement auto parts.

Imported cars, despite their burgeoning popularity in Korea, have been under fire for the high repair expenses that drivers are forced to shoulder, mostly because the parts come directly from overseas plants and few vendors are permitted to replace the parts needed. While this is the case in Korea, independent manufacturers in the U.S. with no association with the carmaker produce more than 30 percent of auto parts.

Experts noted that the revision would offer multiple benefits, including opening the door to more business opportunities for the local manufacturing industry.

“It would further bolster the already strong competitiveness of Korean manufacturers,” said Oh Byung-sung, senior director of the Korea Import Automobile Parts Association.

While customers, parts manufacturers and insurers appeared to welcome the new bill, the import car industry and safety authorities seemed to be cautious.

“In many cases, customers who fixed vehicles using uncertified auto parts often visit our dealership service centers again,” said an official of a German car brand, declining to be named.

A possible decrease in their profits from after-sales service, which currently makes up almost 20 percent of their sales, is also considered another reason why they oppose the revision.

Kang Byung-do, a research fellow at the Korea Transportation Safety Authority, also raised safety concerns, proposing that only a limited number of parts should be allowed to be made by independent makers.

By Lee Ji-yoon (jylee@heraldcorp.com)