Abstract
Product liability(PL) is the producer's compensation to customers for damage incurred by product defects. This paper studies on the organizational culture, promotion process, system construction, system level, product safety review, product safety assurance, system operation, and its effectiveness and necessity of recognition for the PL system of small and medium-sized firms in Gangwon-Do province. The results show that the firms have product safety regulations, but the number of firms which its employees understand the regulations is less than the number of firms which do not understand. Also the number of firms which is preparing PL prevention and insurance, and counterplan for accidents seems to be not in large numbers.