Developing Product Liability Index for Korean Manufacturing Companies

JunHyeok Seo, SungMin Bae


Purpose: PL (product liability) response system is an enterprise-wide system that prevents company’s financial loss due to PL-related accidents. This study aims at developing an evaluation system for objectively assessing the extent to which companies carry out systematic and organized activities for product liability, including product safety activities, preventive actions, and protective measures.

Methodology/Approach: We used the Delphi and analytical hierarchy process methods to develop an evaluation system with product liability experts to present the relative importance of response strategy based on selected evaluation criteria. And then, we carried out systematic and organized PL activities of each industry, scale, and growth stage of the Korean manufacturing companies through PLI.

Findings: In terms of the scale of the manufacturer, Large-sized firms has the highest PLI of 92.32. Also, middle- to large sized firms and middle-sized firms have the highest PLI of 90.63 and 77.35, respectively. And then In terms of the importance of all manufacturers, Awareness was identified as the most important component influencing corporate management activities, with the highest PLI of 78.59.

Research Limitation/implication: This study is limited due to the small sample size and the number of examples.

Originality/Value of paper: Our paper will enable consumers to determine a manufacturer’s response to product liability, and the subsequent positive effects, such as the increase of quality in consumption life.


Cho, G.T., Cho, Y.G. and Kang, H.S., 2003. Analytic Hierarchy Process. Seoul: DongHyeon Press.

Choi, Y.Y., Lim, H.K., Lim, S.Y. and Paek, D.Y., 2012. Health Damages and Lessons of the Humidifier Disinfectants in Korea. Korean Society of Environmental Health, 38(2), pp.166-174.

Hong, H.K., 2003. A Study on the case of PL prevention strategies and prevention systems in the domestic S-company. Journal of the Korean Society for Quality Management, 31(1), pp.62-75.

Hong, H.K., 2010. Analysis on the type of PL Accident by Major Industry. Journal of economy and business, 5(1), pp.125-134.

Kim, K.D. and Choi, K., 2012. A Study on the Policy of Sustainable Domestic Timber Supply Using Delphi Technique and AHP. Journal of Korean Forest Society, 101(3), pp.434-442.

Kim, K.S., Lim, G.C. and Chung, S.S., 2011. A Study on the PL Response by Integrated Management System. Journal of Korean Society for Quality Management, 39(1), pp.120-130.

Korean Agency for Technology and Standards, 2015. Safety Korea. [online] Available at: < > [Accessed 15 June 2017].

Lee, S.M. and Choi, S.C., 2005. A Study on the Strategies for Product Liability in the Food Service Industry. Journal of Digital Contents Society, 5(5), pp.219-227.

Lee, S.S., 2014. The Study on Bottled Water of Quality Index (WQI) Development. Ph. D. Graduate School of KyungHee University.

Park, J.S., Sung, H.K. and Kang, G.S., 2003. A Study Countermeasures Method of Domestic Small and Medium Enterprise According to Product Liability Law. Journal of Korea Safety Management & Science, 4(1), pp.81-92.

Park, Y.T., 2014. Quality Management. Seoul: Korean Standards Association Media.

Seo, J.H. and Bae, S.M., 2016. Identifying Industry-Specific Components of PL Response system using Delphi-AHP Method. Management and Production Engineering Review, 7(4), pp.27-38.

Seo, J.H., Ko, B.S. and Bae, S.M., 2014. Extracting Priorities of Strategic Components of Product Liability Response System using AHP. Journal of Korean Society for Quality Management, 42(2), pp.235-252.

Song, J.H., 2002. Product Liability Act and Corporate Strategies. Seoul: Seongandang.


JunHyeok Seo
SungMin Bae (Primary Contact)
Seo, J., & Bae, S. (2017). Developing Product Liability Index for Korean Manufacturing Companies. Quality Innovation Prosperity, 21(2), 20–36.
Copyright and license info is not available

Article Details

No Related Submission Found