ENFORCEMENT DECREE OF THE ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE, ETC.

Presidential Decree No. 17684, Jul. 24, 2002
Amended by Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 19354, Feb. 22, 2006
Presidential Decree No. 19507, jun. 12, 2006
Presidential Decree No. 19783, Dec. 29, 2006
Presidential Decree No. 19958, Mar. 27, 2007
Presidential Decree No. 20329, Oct. 16, 2007
Presidential Decree No. 20351, Oct. 31, 2007
Presidential Decree No. 20587, Jan. 31, 2008
Presidential Decree No. 21214, Dec. 31, 2008
Presidential Decree No. 21765, Oct. 1, 2009
Presidential Decree No. 22151, May 4, 2010
Presidential Decree No. 22424, Oct. 1, 2010
Presidential Decree No. 22467, Nov. 2, 2010
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 22637, Jan. 24, 2011
Presidential Decree No. 22648, Jan. 28, 2011
Presidential Decree No. 24034, Aug. 13, 2012
Presidential Decree No. 24436, Mar. 23, 2013
Presidential Decree No. 25840, Dec. 9, 2014

Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Act on the Consumer Protection in Electronic Commerce, Etc. and the particulars necessary for the enforcement thereof.

Article 2 (Scope of Consumers)
"Person prescribed by Presidential Decree" in subparagraph 5 (b) of Article 2 of the Act on the Consumer Protection in Electronic Commerce, Etc. (hereinafter referred to as the "Act") means any of the following persons who consume or use goods or services (hereinafter referred to as "goods, etc.") supplied by business operators for purposes other than everyday consumption: 24436, Mar. 23, 2013>
1. An end user or consumer of goods, etc.: Provided, That a person who consumes goods, etc. as raw material (including intermediate material) or capital goods is excluded;
2. A business operator who falls under the proviso to Article 3 (1) of the Act, and buys goods, etc.
(limited to the relationship with a person who sold relevant goods, etc.);
3. A person who has bought goods, etc. for agriculture (including livestock farming) and fishery:
Provided, That a person who operates the deep-sea fishery with permission from the Minister of Oceans and Fisheries pursuant to Article 6 (1) of the Distant Water Fisheries Development Act shall be excluded.

Article 3 (Scope of Financial Products Excluded from Application of the Act)
"Transactions of financial instruments by the financial companies, etc. prescribed by Presidential Decree" in Article 3 (4) of the Act means transactions of financial instruments that are directly dealt by the following financial companies, etc.:
1. Institutions falling under subparagraphs 1 through 8 of Article 38 of the Act on the Establishment, etc. of Financial Services Commission;
2. Credit service providers or loan brokerage companies registered under Article 3 of the Act on
Registration of Credit Business, etc. and Protection of Finance Users;
3. Financial companies established under other Acts and subordinate statutes or financial companies established with authorization, permission, etc. from central administrative agencies.

Article 4 (Acknowledgement of Validity of Electronic Documents Sent to Address not Agreed upon)
"Cases prescribed by Presidential Decree" in the proviso to Article 5 (1) of the Act means the following cases:
1. Where transactions to a specific e-mail address have been made with a consumer on at least two
occasions and electronic documents as defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions (hereinafter referred to as "electronic document") has been transmitted to the e-mail address;
2. Where the consumer has printed the electronic documents;
3. Where they are not contrary to the consumer's interest and the relevant consumer does not deny the validity of such electronic documents;
4. Where an urgent need to contact arises and no other means than e-mails are available.

Article 5 (Procedures to Notify Validity, etc. of Digital Signature)
Pursuant to Article 5 (2) of the Act, every business operator shall include the following matters in the main part of the e-mail which contains the electronic document with a digital signature as defined in subparagraph 2 of Article 2 of the Digital Signature Act, or notify the consumer in advance:
1. Validity of an electronic document with a digital signature;
2. Method to print an electronic document with a digital signature.

Article 5-2 (Exceptional Application of Acts Related to Protection of Personal Information)
"The provisions of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and other Acts related to the protection of personal information prescribed by Presidential Decree" in Article 6 (2) of the Act means the following provisions:
1. Article 30 (3) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;
2. Main sentence of Article 21 (1) and Articles 36 (2) and 37 (4) of the Personal Information Protection Act;
3. Main sentence of Article 37 (1) of the Use and Protection of Credit Information Act.

Article 6 (Transaction Records, etc. to be Preserved by Business Operators)
(1) The object, scope, and period of transaction records to be preserved by a business operator pursuant to Article 6 (3) of the Act shall be as follows: Provided, That a mail order broker shall preserve the following transaction records within the extent of the records that he/she has managed through his/her data processing system:
1. Records related to indication and advertisement: Six months;
2. Records related to contracts and cancellation, etc. of orders: Five years;
3. Records related to payment and supply of goods, etc.: Five years;
4. Records related to settlement of consumer complaints or disputes: Three years.
(2) The methods of perusal and preservation of the transaction records every business operator is obliged to supply to the consumers pursuant to Article 6 (3) of the Act shall be as follows:
1. To allow the consumer who is a party to a transaction to peruse and confirm the transaction records at the relevant cybermall (referring to the cybermall referred to in subparagraph 4 of Article 2 of the Act; hereinafter the same shall apply) where the transaction has been concluded, and store it in the data  processing system, etc. in the form of electronic document;
2. To allow the consumer who is a party to a transaction to peruse or copy the transaction records with him/her at the request of the consumer by means of visit, telephone, facsimile, e-mail, etc.: Provided, That where the works falling under any of Articles 4 through 6 (excluding works which can be copied under the Copyright Act) exist in the transaction records, copying thereof may be refused;
3. Where the business operator keeps the transaction records and the personal information of the
consumer who withdraws his/her consent to the use of his/her personal information pursuant to Article 6 (2) of the Act, the business operator shall keep the transaction records and personal information of other consumers who do not withdraw their consent to the use of their personal information separately from the personal information of the consumer.

Article 7 (Electronic Payment)
"Electronic means prescribed by Presidential Decree in the payment of transaction amount" in Article 8 (1) of the Act means the payment settled in the form of electronic document: Provided, That where confirming the person himself/herself vis-a-vis shall be excluded.

Article 8 (Electronic Settlement Business Operators, etc.)
"Persons related with the electronic payment who are prescribed by Presidential Decree" in Article 8 (1) of the Act means the issuers of the relevant electronic means of settlement, providers of electronic settlement service, or persons who assist in or intermediate the provision of electronic settlement service (hereinafter referred to as "electronic settlement business operators, etc."), falling under any of the following:
1. Financial companies under the Banking Act and other Acts and subordinate statutes conducting the business of transferring funds between accounts;
2. Credit card business operators under subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act;
3. Issuers of the means of settlement of recording and storing monetary value or other equivalent value in the electronic medium or data processing system, which is payable at the time of purchasing goods, etc.;
4. Providers of information and communications services under subparagraph 3 of Article 2 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;
5. Providers of telecommunications billing services under subparagraph 11 of Article 2 of the Act on
Promotion of Information and Communications Network Utilization and Information Protection, etc.;
6. Business operators of agency or brokerage service of the electronic settlement.

Article 9 (Procedures for Confirming Notices on Electronic Payment)
Each business operator, electronic settlement business operator, etc. shall provide consumers with  a window for electronic settlement prepared by an electronic settlement business operator, through which a consumer can choose whether or not to consent to the matters stipulated in the subparagraphs of Article 8 (2) of the Act after confirming them. In such cases, the business operator, electronic settlement business operator, etc. shall not proceed with the confirmation procedure by way of providing in advance the indication of consent before the consumer  himself/herself chooses whether to consent thereto.

Article 10 (Settlement of Disputes regarding Electronic Payment)
Where a business operator or consumer requests the settlement of dispute pursuant to Article 8 (5) of the Act explaining the fact that a dispute has arisen, the electronic settlement business operator, etc. shall, without delay, cooperate in the following matters within the extent necessary for the settlement of the dispute:
1. To allow perusal and copy of the information (including the information on the authentication of
customer) regarding the payment of price, which caused the dispute;
2. To allow perusal and copy of the information related to the measures for maintaining confidentiality taken by the electronic settlement business operator, etc. regarding the payment, which caused the dispute: Provided, That the disclosure of information, which is likely to cause hindrance to confidentiality, may be denied.

Article 11 (Cooperation of Delivery Business Operators, etc. in Settlement of Disputes)
Where a consumer requests any cooperation explaining the occurrence of a dispute, the business operator conducting the delivery of goods, etc. shall, without delay, cooperate in the following matters pursuant to Article 9 (1) of the Act within the extent necessary for the settlement of dispute:
1. Perusal or provision of the records related to delivery;
2. Perusal of records to confirm the facts related to accident or hindrance.

Article 11-2 (Cooperation of Hosting Service Providers in Settlement of Disputes)
(1) "Data prescribed by Presidential Decree, such as personal identification information of the business operator" in Article 9 (3) of the Act means the following data:
1. Name and resident registration number of the business operator (if requested by a consumer under Article 9 (3) 4 of the Act, referring to the date of birth);
2. Trade name (in the case of a corporation, including the name and resident registration number of the representative (if requested by a consumer under Article 9 (3) 4 of the Act, including the date of birth)), address and telephone number.
(2) "Entities prescribed by Presidential Decree" in Article 9 (3) 5 of the Act means the following
organizations:
1. The Korea Consumer Agency established under Article 33 of the Framework Act on Consumers
(hereinafter referred to as "Korea Consumer Agency");
2. The Consumer Dispute Mediation Commission established under Article 60 of the Framework Act
on Consumers (hereinafter referred to as "Consumer Dispute Mediation Commission");
3. The Electronic Document and E-Commerce Mediation Committee established under Article 32 of the Framework Act on Electronic Documents and Transactions (hereinafter referred to as "E-Commerce Mediation Committee");
4. The Content Dispute Resolution Committee established under Article 29 of the Content Industry
Promotion Act (hereinafter referred to as "Content Dispute Resolution Committee").

Article 11-3 (Indications of Cybermalls)
"Matters prescribed by Presidential Decree" in Article 10 (1) 6 of the Act means the trade names of
persons providing hosting services under Article 9 (2) of the Act.

Article 12 (Confirmation, etc. of Information on Consumers)
"Necessary measures prescribed by Presidential Decree, such as verification of the person himself/herself or recovery from damage" in Article 11 (2) of the Act means any of the following measures:
1. Verification of illegal use and provision of transaction records related to the relevant consumer, if
requested by the consumer himself/herself;
2. Reinstatement of the information related to the consumer that has been forged by illegal use;
3. Recovery from damage by illegal use.

Article 13 (Procedures for Reporting by Mail Order Distributors)
(1) A mail order distributor who intends to file a report pursuant to Article 12 (1) of the Act shall submit a written report (including a written report compiled in the form of electronic document) prescribed by Ordinance of the Prime Minister to the Governor of a Special Self-Governing Province or the head of a Si/Gun or Gu (referring to an autonomous Gu; hereinafter the same shall apply) having jurisdiction over the seat of its principal office (where the seat of its principal office is overseas, submit to the Fair Trade Commission). In such cases, where a mail order distributor intends to operate the prepaid mail order business under the main sentence of Article 15 (1) of the Act, a written report shall be accompanied by the following documents:
1. Documents prepared in the forms prescribed by Ordinance of the Prime Minister to verify the use of escrow system under Article 13 (2) 10 of the Act or the conclusion of a contract, etc. of consumer damage compensation insurance under the subparagraphs of Article 24 (1) of the Act;
2. In cases of transactions stipulated in the subparagraphs of Article 24 (3) of the Act, materials
explaining them.
(2) The Fair Trade Commission, the Governor of a Special Self-Governing Province, or the head of a
Si/Gun/Gu, upon receipt of a report filed under paragraph (1), shall confirm the following documents through sharing of administrative information provided for in Article 36 (1) of the Electronic Government Act, and, where the reporter does not consent to the proviso to subparagraph 1 or to the confirmation of the document prescribed in subparagraph 2, he/she shall have the reporter submit the relevant documents (in the case falling under subparagraph 2, referring to the copy thereof):
1. A certificate of registered matters of the corporation (limited to any corporation): Provided, That
where the report is filed before a corporation registers its incorporation, it shall refer to the certified
copies of the resident registration cards of the incorporators for establishment of the corporation;
2. A business registration certificate.
(3) The Fair Trade Commission, the Governor of a Special Self-Governing Province or the head of a
Si/Gun/Gu who receives a report pursuant to paragraph (1) shall issue a certificate of report in the form prescribed by Ordinance of the Prime Minister.

Article 14 Deleted.

Article 15 (Matters to be Reported by Mail Order Distributors)
"Matters prescribed by Presidential Decree" in Article 12 (1) 3 of the Act means the name and resident registration number (limited to an individual) of the business operator.

Article 16 (Reports on Modifications by Mail Order Distributors)
(1) A person who intends to report on modifications pursuant to Article 12 (2) of the Act shall, within 15 days from the occurrence of such modifications, submit the report thereon in the form prescribed by Ordinance of the Prime Minister, accompanied by the document evidencing such modifications to the Fair Trade Commission, the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu.
(2) The Fair Trade Commission, the Governor of a Special Self-Governing Province or the head of a
Si/Gun/Gu who receives a report under paragraph (1) shall confirm the matters on the modifications and reissue the certificate of report stating the modified matters.

Article 17 (Reports on Suspension, Closure or Resumption of Business after Suspension)
When a mail order distributor suspends or closes his/her business or resumes his/her business after
suspension pursuant to Article 12 (3) of the Act, he/she shall report thereon in the form prescribed by the Ordinance of the Prime Minister in advance to the Fair Trade Commission, the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu: Provided, That where he/she reports closure of business, he/she shall append the former certificate of report thereto.

Article 18 (Reports by Electronic Documents)
(1) Where reports provided for in Articles 13, 16, and 17 are filed by electronic documents, they may be done with a data processing system designated by the Fair Trade Commission.
(2) In filing reports by electronic document pursuant to paragraph (1), the matters which are difficult to report by electronic document may be complemented by post, etc. within one month, and where complemented, it shall be deemed reported on the day it was first reported by electronic document.
(3) Except as otherwise expressly prescribed in paragraphs (1) and (2), matters necessary for performing the affairs with respect to accepting reports by electronic document shall be prescribed by Ordinance of the Prime Minister.

Article 19 (Disclosure of Information on Mail Order Distributors)
(1) Where the Fair Trade Commission discloses information pertaining to a mail order distributor pursuant to Article 12 (4) of the Act, it shall inform the mail order distributor of the details and methods of disclosure in advance, and provide an opportunity to correct the details different from the fact.
(2) Where the Fair Trade Commission discloses information pertaining to a mail order distributor pursuant to paragraph (1), the Fair Trade Commission shall not disclose the resident registration number of the mail order distributor (in cases of a corporation, including that of its representative).

Article 19-2 (Issuance of Documents Related to Contents of Contracts to Persons who are Supplied
with Goods, etc.)
"Where any ground prescribed by Presidential Decree exists" in the proviso to Article 13 (2) of the Act means any of the following cases:
1. Where a contractor has consented to issue a document (including an electronic document) related to the contents of the contract to the person who receives goods, etc.;
2. Where the documents related to the contents of a contract cannot be issued to the contractor on
ground that it is impossible for the mail order distributor to know the address (including e-mail address) of the contractor without his/her intention or negligence.

Article 19-3 (Scope, etc. of Third Parties)
(1) "Third party prescribed by Presidential Decree" in Article 13 (2) 10 of the Act means any of the
following persons:
1. A business operator registered with the Financial Services Commission to provide an escrow system provided for Article 13 (2) 10 of the Act in accordance with Article 28 (2) 5 of the Electronic Financial Transactions Act and Article 15 (3) 1 of the Enforcement Decree of the same Act and meets all of the following requirements:
(a) The person shall have concluded a consumer compensation insurance contract, etc. provided for
in Article 24 (1) of the Act (hereinafter referred to as "consumer compensation insurance contract,
etc.");
(b) The person shall have deposited settlement prices paid by consumers in the accounts opened and reported exclusively for depositing the settlement prices in financial institutions provided for in
Article 38 of the Act on the Establishment, etc. of Financial Supervisory Organizations or postal
agencies provided for in the Postal Savings and Insurance Act;
2. A financial institution provided for in the proviso to Article 28 (2) of the Electronic Financial
Transactions Act.
(2) A consumer compensation insurance contract, etc., which every business operator provided for in paragraph (1) 1 is required to conclude pursuant to paragraph (1) 1 (a), shall meet all of the following requirements:
1. It shall provide for that the business operator shall indemnify damage caused by his/her failure or inability to refund settlement price to a consumer under subparagraph 4 of Article 28-3;
2. The insured or beneficiary shall be a consumer whose settlement price is deposited in an escrow
account;
3. The contract amount of a consumer compensation insurance contract, etc. shall be an amount that is at least ten percentage of the balance of the settlement prices deposited by consumers (where the contract amount needs to be changed, the insurance contract shall be adjusted without delay, and where it is difficult to change the contract amount at any time, the insurance contract shall be adjusted based on the balance of the settlement prices as of the end of every month);
4. It shall not limit the scope of the damaged parties or the liability of the insurer or the business
operator without any justifiable ground;
5. It shall ensure prompt and convenient payment of compensation to a customer and, where the
compensation for the damage is delayed, the compensation for the delay shall be paid;
6. It shall not restrict the way any consumer expresses his/her opinion without any justifiable ground and place excessive burden of proof on the consumer;
7. It shall not contain terms and conditions likely to cause unpredictable risk or damage, or unfairly
disadvantageous to a customer;
8. An insurance contract or debt repayment guarantee contract shall be concluded with an insurance company as defined in subparagraph 6 of Article 2 of the Insurance Business Act or a bank as defined in Article 2 (1) 2 of the Banking Act.

Article 20 (Matters to be Stated in Contracts)
"Matters prescribed by Presidential Decree" in Article 13 (2) 11 of the Act means the following matters:
1. Details and amount where consumers should pay for in addition to the price of goods, etc., expenses for exchange or return, etc.;
2. Details of limits to the terms of sale, such as date, area, quantity of sales, and place of delivery, if any.

Article 21 (Restriction on Cancellation, etc. of Orders)
"Other cases prescribed by Presidential Decree" in Article 17 (2) 5 of the Act means where granting of cancellation of an order, etc. for goods, etc. (hereinafter referred to as “cancellation, etc. of order”) is expected to bring a serious unrecoverable loss to the mail order distributor, such as the cases of the goods, etc. produced separately on consumer's order or other goods, etc. similar thereto, and where such fact has been notified separately in advance with respect to the relevant transaction and the consumer's consent has been obtained in writing (including electronic  documents).

Article 21-2 (Interest Rate for Late Payment)
"Interest rate prescribed by Presidential Decree" in the latter part of Article 18 (2) of the Act means 20 percentage per annum.

Article 22 (Means of Settlement subject to Suspension or Cancellation of Requests of Payment
following Cancellation, etc. of Orders)
"Other means of settlement prescribed by Presidential Decree" in the main sentence of Article 18 (3) of the Act means the means of settlement, other than cash (including payment in transfer of funds to an account), in which a consumer who has bought the goods, etc. pays directly, which has the same effect on the relevant consumer as the refund where the request of payment to the business operator who has supplied the relevant means of settlement (hereinafter referred to as "settlement business operator") is stopped, or cancelled, or where the settlement business operator is refunded.

Article 23 (Offset of Debts)
(1) Where a consumer requests an offset by following methods, the settlement business operator may do so immediately pursuant to the latter part of Article 18 (6) of the Act:
1. The request shall be made by a document (including electronic documents) stating the amount to be refunded, etc.;
2. The request shall be accompanied by data evidencing the fact that the order has been cancelled within the period prescribed in the subparagraphs of Article 17 (1) of the Act or Article 17 (3) of the Act and that the goods, etc. has been returned pursuant to Article 18 (1) of the Act (where the receipt of goods, etc. has been refused despite that the consumer returned them to the address of the mail order distributor stated in the contract, a document verifying such fact shall be appended).
(2) Where a settlement business operator conducts an offset pursuant to paragraph (1), he/she shall send the document (including electronic documents) stating such fact, details of amount, etc. to the relevant mail order distributor and consumer without delay.
(3) Except as otherwise expressly provided for in paragraphs (1) and (2), matters necessary for the offset of the settlement business operator shall be prescribed by Ordinance of the Prime Minister.

Article 24 (Extent of Request for Expenses in case of Partial Consumption of Goods, etc.)
"Amount within the extent prescribed by Presidential Decree" in Article 18 (8) of the Act means the
following expenses:
1. Where the resale of the consumable parts is difficult or the price of resale drops substantially due to use of the goods, etc., expenses incurred by supplying the consumable parts concerned;
2. Where the goods, etc. are composed of a number of identical divisible parts, expenses incurred in supplying the portion partially consumed by the consumer.

Article 25 (Provision of Information by Mail Order Brokers who are Mail Order Distributors)
(1) "Name (where the business operator is a corporation, the name thereof and the name of its
representative), address, telephone number and other matters prescribed by Presidential Decree" in Article 20 (2) of the Act means the matters provided for in the subparagraphs of Article 13 (1) of the Act and business registration number, and includes the following information where a mail order broker who is a mail order distributor has such information:
1. Identification information confirmed through a licensed certification authority (referring to a licensed certification authority defined in subparagraphs 10 of Article 2 of the Digital Signature Act; hereinafter the same shall apply) or a credit information company defined in subparagraph 5 of Article 2 of the Use and Protection of Credit Information Act; hereinafter the same shall apply);
2. Information on the credit rating of a requester of mail order brokerage provided by the mail order broker who is the relevant mail order distributor.
(2) "Name, telephone number and other matters prescribed by Presidential Decree" in Article 20 (2) of the Act means the name, date of birth, address, telephone number, and e-mail address, and includes the following information where a mail order broker who is a mail order distributor has such information:
1. Identification information confirmed through a licensed certification authority or a credit information company;
2. Information on the credit rating of a requester of mail order brokerage provided by the mail order broker who is the relevant mail order distributor.

Article 25-2 (Contents, Method, etc. of Measures for Settlement of Complaints of Consumers or
Disputes)
A mail order broker shall take the following measures pursuant to Article 20 (3) of the Act:
1. He/she shall employ human resources and have a facility to receive and deal with the disputes or
complaints occurring between requesters of mail order brokerage and consumers;
2. He/she shall prepare in advance guidelines for settlement of the disputes or complaints occurred by mail order brokers or requesters of mail order brokerage and announce them in the cybermall;
3. He/she shall examine the complaints of consumers or causes of disputes, etc. and inform the relevant consumers of the progress in processing them within three business days, and inform them of the result of the examination or the measures to be taken within ten business days.

Article 26 (Use of Consumer Information for Delivery, etc. of Goods, etc.)
"Cases prescribed by Presidential Decree" in Article 21 (1) 6 (a) of the Act means the following cases: 1. Where a person who conducts delivery or forwarding of goods, etc. as a business conducts the relevant delivery or forwarding to the persons he/she is entrusted with;
2. Where a person who conducts installation, after-sales service, and other contracted services as a
business provides the relevant services to the persons he/she is entrusted with.

Article 27 (Use of Consumer Information for Prevention of Identity Theft)
"Cases prescribed by Presidential Decree" in Article 21 (1) 6 (c) of the Act means the following cases:
1. Where the consumer information is provided to any of the following persons in order to confirm the identity, real name, or true will of a consumer himself/herself:
(a) A key communications business operator under Article 5 (3) 1 of the Telecommunications
Business Act;
(b) A credit information business company or a credit information collection agency defined in
subparagraph 5 or 6 of Article 2 of the Use and Protection of Credit Information Act;
(c) An electronic settlement business operator, etc. directly connected with the settlement of price
consequent upon the relevant transaction;
(d) A person who runs a business of verifying the real names of consumers for the purpose of
preventing identity thefts under authorization or permission prescribed by Acts and subordinate
statutes;
2. Where the consumer information is used to verify the consent of a legal guardian for a transaction with a minor.

Article 28 (Contracts, etc. of Consumer Damage Compensation Insurance)
(1) A contract, etc. of consumer damage compensation insurance, which the Fair Trade Commission
encourages to conclude pursuant to the part other than the subparagraphs of Article 24 (1) of the Act, shall satisfy the following matters:
1. To have the contents that the consumer damage consequent upon the non-fulfillment of duty to
refund occurring out of the exercise of right of cancellation, etc. of order or non-fulfillment, etc. of duty to supply goods, etc. shall be compensated;
2. That the insured or beneficiary shall be the buyer of the goods, etc. sold by the person who concluded the relevant contract, etc. of consumer damage compensation insurance;
3. That the insurance amount shall be above the scale the Fair Trade Commission prescribes within the limit of transaction amount of the goods, etc.;
4. That the scope of damage indemnity and the liabilities of the insurers or the sellers of goods, etc.
shall not be limited without any justifiable grounds therefor;
5. Matters referred to in Article 19-2 (3) 5 through 8.
(2) A mail order distributor who intends to operate a prepaid mail order business under Article 24 (2) of the Act shall submit documents provided for in the subparagraphs of Article 13 (1) to the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu with whom a report on the mail order business is filed under Article 12 (1) of the Act before he/she commences such prepaid mail order business.
(3) A contract, etc. of consumer damage compensation insurance shall meet all the following requirements in accordance with Article 24 (5) of the Act:
1. To have the contents that the consumer damage occurring out of the impossibility of exercising the rights endowed by the electronic means of settlement purchased by a consumer shall be compensated;
2. That the insured or beneficiary shall be the buyer of the electronic means of settlement;
3. That the contract amount shall be the amount of ten percentage or less of the balance of issued value of the electronic means of settlement, which are within the effective period of claim pursuant to the Commercial Act and issued by the issuers of electronic settlement, but not less than the amount prescribed by the Fair Trade Commission (excluding the amount deposited at the institutions provided for in subparagraphs 1 through 8 of Article 38 of the Act on the Establishment, etc. of Financial Services Commission and postal agencies dealing with postal savings or postal insurances under the Postal Savings and Insurance Act, and where the responsibilities, such as debt guarantee similar thereto is fulfilled pursuant to other Acts and subordinate statutes, referring to the amount computed after deducting the relevant amount);
4. That the scope of damage indemnity or the liabilities of the insurers or the issuers of electronic means of settlement shall not be limited without any justifiable grounds;
5. Matters referred to in Article 19-3 (2) 5 through 8.
(4) Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary for the detailed standards of the contract, etc. of consumer damage compensation insurance in accordance with the characteristics of the goods, etc. or transaction, contents and procedures of damage compensation, and matters necessary for the use of mark of the contract, etc. of consumer damage compensation insurance shall be prescribed by Ordinance of the Prime Minister.

Article 28-2 (Deposit of Settlement Prices and Subjects of Exclusion of Application of Contracts, etc. of Consumer Damage Compensation Insurance)
"Amount prescribed by Presidential Decree" in Article 24 (3) 1 of the Act means the amount of less than 50,000 won (the amount shall be based on the amount that is settled once by the relevant consumer).

Article 28-3 (Methods to Pay Deposited Settlement Prices)
A third party provided for in Article 19-3 (1) (hereinafter referred to as "third party") shall pay the
deposited settlement prices to the mail order distributors or refund them to the consumers in the following methods pursuant to Article 24 (4) of the Act:
1. The third party shall ask the consumer (including any person supplied with the goods, etc. where the third party obtains the consent thereto from the consumer; hereafter the same shall apply in
subparagraphs 2 and 3) who purchases the goods, etc. to notify him/her of the fact that he/she is
supplied with the goods, etc. within three business days (where the party to the transaction agrees on a longer period than three business days, referring to the period; hereinafter the same shall apply) from the date he/she is supplied with the goods, etc. and the third party shall pay the settlement price to the mail order distributor after he/she is notified of the fact by the consumer that the latter is supplied with the goods, etc.;
2. The third party shall, when the consumer fails to notify the fact that he/she is supplied with the goods, etc. after the lapse of three business days from the date he/she is supplied with the goods, etc. at the time the third party asks the consumer to notify the former pursuant to subparagraph 1, notify the consumer of the fact that the third party may pay the settlement price to the mail order distributor;
3. Where the consumer fails to notify the fact that he/she is supplied with the goods, etc. after the lapse of three business days without any justifiable grounds therefor, the third party may pay the settlement price to the mail order distributor at the time falling under any of the following items:
(a) When the consumer fails to notify the fact that he/she is supplied with the goods, etc. within the fixed period after he/she receives a notification under subparagraph 2;
(b) When three business days lapse after the third party notifies the consumer of the fact if he/she
fails to make a notification under subparagraph 2;
4. Where the grounds arise that make it possible for the consumer to be refunded with the settlement price before the third party pays the settlement price to the mail order distributor, the settlement price shall be refunded to the consumer.

Article 28-4 (Authorization, etc. for Mutual-Aid Associations)
@Articles 45, 47 and 48 of the Enforcement Decree of the Act on Door-to-Door Sales, Etc. shall apply mutatis mutandis to the authorization, matters to be entered in the articles of association, the operation and supervision of a mutual-aid association established under Article 24 (10) of the Act.

Article 28-5 (Composition, etc. of Inspection Teams)
(1) An inspection team to be established under Article 26 (6) of the Act (hereafter referred to as
"inspection team" in this Article) shall be comprised of a chief of the team and team members.
(2) A public official belonging to the Fair Trade Commission shall be the chief of the team referred to in paragraph (1), and public officials belonging to the Fair Trade Commission and the employees of the Korea Consumer Agency designated by the president thereof shall be team members.
(3) Where the Fair Trade Commission intends to organize an inspection team, it shall request the president of the Korea Consumer Agency to designate team members by a document stating the inspection period, the subject of inspection, and the number of persons necessary for the inspection.
(4) The activities of inspection team, including inspections, shall be performed under the control and supervision of the chief of the team.

Article 29 (Requests, etc. to Submit Data to Agencies or Organizations Related to Consumer
Protection)
(1) The submission or sharing of data pursuant to Article 27 (3) of the Act shall be requested in writing (including electronic documents) stating the following matters:
1. Purpose;
2. Use;
3. Detailed scope of data to be submitted or shared.
(2) The Fair Trade Commission shall not use the data, which has been submitted from or shared with the agencies or organizations performing the consumer protection-related businesses in the electronic commerce transaction or mail order pursuant to Article 27 (3) of the Act, for purposes other than the purpose and use that it has informed beforehand pursuant to paragraph (1).

Article 30 (Disclosure, etc. of Information on Violations, etc.)
(1) Where the Fair Trade Commission intends to disclose information pursuant to Article 28 of the Act, it shall notify the relevant business operator beforehand of the contents of the information to be disclosed and give him/her an opportunity to explain.
(2) The Fair Trade Commission may disclose the information and fact of explanation, etc. under paragraph (1) through the web-site, etc. of the Fair Trade Commission so that they can be widely known to consumers.

Article 31 (Fairness of Evaluation and Authentication Business)
(1) Every evaluation and authentication business operator under Article 29 (1) of the Act shall publicly notify the following matters, as prescribed by the Fair Trade Commission:
1. Name of the evaluation and authentication business operator;
2. Address or location of business place;
3. Scope of evaluation and authentication;
4. Date of commencement of evaluation and authentication business;
5. Matters concerning the standards, procedures, and methods of evaluation and authentication.
(2) The matters stipulated in the subparagraphs of paragraph (1) shall be announced in such a way that the consumers can easily peruse and confirm.

Article 32 (Duty to Report)
When the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") makes a
recommendation for correction under Article 30 (1) of the Act, he/she shall report thereon to the Fair Trade Commission, and when the head of a Si/Gun/Gu makes such recommendation, he/she shall report to the Fair Trade Commission and the relevant Mayor/Do Governor, without delay. In such cases, such report may be filed by electronic documents.

Article 33 (Public Announcement of Corrective Measures Imposed and Measures Necessary for
Prevention and Relief of Damage to Consumers)
(1) When the Fair Trade Commission intends to order the business operators to publicly announce the fact that corrective measures have been imposed against them pursuant to Article 32 (3) of the Act, it shall do so determining the contents and frequency of announcement in consideration of the following matters:
1. Details and degree of the violations;
2. Periods and frequency of the violations;
3. Extent and degree of consumers' damage due to violations.
(2) Measures necessary for the prevention and relief of damage to consumers under Article 32 (3) of the Act shall be as follows:
1. Measures to impose an obligation to employ the human resources or to have the facility necessary to deal with the disputes or complaints arising between the business operator and consumers;
2. In cases of refusal of, or delay in, refund of prices, measures to refund the amount computed by
adding an amount calculated by multiplying the rate prescribed in Article 21-2 and the period calculated from when three business days have elapsed from the day goods, etc. were received by the business operator till measures are taken;
3. In cases of refusal of exchange of goods, etc., measures to exchange them.

Article 34 (Suspension of Business)
The criteria for suspension of business pursuant to Article 32 (4) of the Act shall be as stipulated in
attached Table 1.

Article 35 (Dispute Arbitration Organizations on Consumer Damage)
"Dispute arbitration organization on consumer damage prescribed by Presidential Decree" in Article 33 (1) of the Act means any of the following organizations:
1. Consumer Dispute Mediation Commission;
2. E-Commerce Mediation Committee;
3. Content Dispute Resolution Committee;
4. Other dispute settlement organizations established and operated pursuant to the Acts and subordinate statutes related to consumer protection.

Article 36 (Procedures, etc. of Not Performing Corrective Measures when Accepting and Executing
Arbitration of Disputes)
(1) Parties to dispute arbitration provided for in Article 33 of the Act may submit the documents
evidencing the execution of recommendation or arbitration of the dispute arbitration organization to the Fair Trade Commission within ten days from such execution, and request for the confirmation that it shall not implement the corrective measures pursuant to Article 32 of the Act.
(2) Upon receipt of a request under paragraph (1), the Fair Trade Commission shall notify the business operator of the objects, etc. that are not subject to the corrective measures.

Article 37 (Procedures to Collect Penalty Surcharges)
(1) In imposing a penalty surcharge, the Fair Trade Commission shall give written notice specifying the type of the violation and amount of penalty surcharge.
(2) Upon receipt of written notice given under paragraph (1), a person shall pay the penalty surcharge at the collecting institution designated by the Fair Trade Commission within 60 days from such notice: Provided, That where it is impossible to pay it due to a natural disaster or other inevitable causes, he/she shall pay it within 30 days from the day such causes cease to exist.

Article 38 (Calculation, etc. of Sales Amount Relating to Acts of Violation for Imposition of Penalty
Surcharges)
(1) "Sales amount related to the violation prescribed by Presidential Decree" in the former part of Article 34 (1) of the Act means one of the following amounts: Provided, That if the relevant violation falls under two or more of subparagraphs 1 through 3, it shall refer to the biggest amount of them:
1. Where the relevant violation is not the direct cause of occurrence of sale or consumer damage: The amount equivalent to ten percent of the sales amount from the occurrence of such violation till the completion thereof (where the act is not completed by the time of disposition of penalty surcharge, the day of resolution ordering the disposition of imposition of penalty surcharge shall be deemed the day of completion of such act): Provided, That where the violation is limited to a certain field, it shall be based on the sales amount in such field;
2. Where the relevant violation is the direct cause of occurrence of sale: The amount equivalent to the whole sales amount having proximate causal relation with the relevant violation;
3. Where the relevant violation is the direct cause for consumer damage: The amount equivalent to the whole sales amount of damage incurred due to such violation.
(2) The disposition of penalty surcharges under Article 34 (1) of the Act shall be as stipulated in attached Table 2.
(3) Except as otherwise expressly provided for in this Decree, the Fair Trade Commission may determine and publicly notify the detailed criteria for imposition of penalty surcharges.

Article 39 (Registration of Business Operator Organizations)
(1) A business operator organization that intends to register pursuant to Article 37 (1) of the Act shall submit to the Fair Trade Commission a written application stating the following matters:
1. Purpose of establishment;
2. Title;
3. Address of main office, branch office, and homepage;
4. Name, resident registration number, address, telephone number, and e-mail address of the
representative;
5. Date of establishment;
6. Number of members (including the number of branches);
7. Details of business.
(2) A written application under paragraph (1) shall be accompanied by the articles of association and the following data:
1. Status of human resources and financial condition, and funding plan;
2. List and capacity of main facilities.
(3) When any of the matters provided for in paragraph (1) 1 through 4, 6 and 7, and the subparagraphs of paragraph (2) is modified, a business operator organization registered pursuant to Article 37 (1) of the Act shall notify the Fair Trade Commission of such fact within 20 days from the date of modification.

Articles 40 (Re-Examination of Regulation)
The Fair Trade Commission shall examine the propriety of each of the following matters every second year (referring to the period that ends on the day before January 1 of every second year) from each relevant base date and take measures for improvement, etc.:
1. Exceptional application of Acts related to the protection of personal information Article 5-2: January 1, 2015;
2. The object, scope, and period of transaction records to be preserved by business operators pursuant to Article 6 and the methods of perusal and preservation of such transaction records: January 1, 2015;
3. The scope of data provided by hosting service providers provided for in Article 11-2 (1): January 1, 2015;
4. The scope of matters to be indicated by the operators of cybermalls pursuant to Article 11-3: January 1, 2015;
5. Matters to be stated in contracts pursuant to Article 20: January 1, 2015;
6. Settlement of disputes of mail order brokers pursuant to Article 25-2: January 1, 2015;
7. Requirements for contracts, etc. of consumer damage compensation insurance provided for in Article 28: January 1, 2015;
8. Matters to be published by evaluation and authentication business operators pursuant to Article 31: January 1, 2015;
9. Matters to be entered, and the scope of accompanying documents, pursuant to Article 39: January 1, 2015.

Article 41 Deleted.

Article 42 (Criteria for Imposition of Administrative Fines)
The criteria for imposition of administrative fines under Article 45 (3) of the Act shall be as listed in
attached Table 3.

ADDENDUM
This Decree shall enter into force on the date of its promulgation: Provided, That the provisions of Articles 5, 6, 8, 9, 14, and 28 (2) shall enter into force three months after the date of its promulgation.

ADDENDUM
This Decree shall enter into force on the date of its promulgation.

ADDENDUM
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 6 (2) 3 shall enter into force three months after the date of its promulgation and the amended provisions of Articles 19-2 and 28-2 through 28-5 shall enter into force on April 1, 2006.

ADDENDUM
This Decree shall enter into force on the date of its promulgation.

ADDENDA
(1) (Enforcement Date) This Decree shall enter into force on January 1, 2007.
(2) Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2007. (Proviso Omitted.)

Articles 2 through 8 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on October 20, 2007.

Article 2 (Applicability to Interest Rate for Late Payment)
The amended provision of Article 21-2 shall be applicable to the first case where a mail order
distributor delays in refunding the price for goods, etc. to a consumer after this Decree enters into force.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.

Articles 2 through 9 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2008.

Articles 2 and 3 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 5 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.

Articles 2 through 5 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.

Articles 2 through 4 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.

Articles 2 through 10 Omitted.

ADDENDUM
This Decree shall enter into force on the date of its promulgation.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.

Articles 2 through 5 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011. (Proviso Omitted.)

Articles 2 through 23 Omitted.

ADDENDUM
This Decree shall enter into force from the date of its promulgation: Provided, That the amended provisions of Article 28-2 shall enter into force six months after the date of its promulgation.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on August 18, 2012.

Article 2 (Applicability to Interest Rates for Late Payment)
The amended provisions of Article 21-2 shall apply from the first case in which a mail order distributor delays the refund of the prices of goods, etc. to the consumer after this Decree enters into force.

Article 3 (Transitional Measures Following Amendment of the Act)
Among the amended provisions of subparagraph 1 of Article 4, Article 11-2 (2) 3, and subparagraph 2 of Article 35, "Framework Act on Electronic Documents and Transactions" shall be construed as "Framework Act on Electronic Transaction", and "Electronic Document and E-Commerce Mediation Committee" shall be construed as "E-Commerce Mediation Committee" until September 1, 2012.

Article 4 (Transitional Measures concerning Criteria for Suspension of Business)
(1) In applying the criteria for suspension of business against a violation committed before this Decree enters into force, the former provisions shall apply, notwithstanding the amended provisions of Article 34 and attached Table 1.
(2) Where a person, having received an administrative disposition by committing a violation stipulated in attached Table 1 under the former provisions, violates the same provisions again after this Decree enters into force, he/she shall be deemed to have committed a violation on one occasion under this Decree, while a person, having received administrative dispositions by committing a violation on at least two occasions under the former provisions, violates the same provisions again after this Decree enters into force, he/she shall be deemed to have committed a violation on at least two occasions, respectively under this Decree.
(3) In the application of paragraph (2), where the criteria for administrative dispositions is applied based on the frequency of violations committed after this Decree enters into force, the administrative dispositions received before this Decree enters into force shall be counted in the calculation of frequency of violations only if such dispositions are received within one year after this Decree enters into force, notwithstanding the amended provisions of the fore part of subparagraph 1 (b) of attached Table 1.

Article 5 (Transitional Measures concerning Criteria for Imposition of Penalty Surcharges)
Notwithstanding the amended provisions of Article 38 (2) and attached Table 2, the application of the criteria for imposition of penalty surcharges against a violation committed before this Decree enters into force shall be governed by the former provisions.

Article 6 (Transitional Measures concerning Criteria for Imposition of Administrative Fines)
(1) Notwithstanding the amended provisions of Article 42 and attached Table 3, the application of the criteria for imposition of administrative fines for violations committed before this Decree enters into force shall be governed by the previous provisions.
(2) Where the criteria for administrative fines are applied based on the frequency of violations
committed after this Decree enters into force, the administrative dispositions issued before this Decree enters into force shall be counted in the calculation of frequency of violations only if such dispositions are issued within one year after this Decree enters into force, notwithstanding the amended provisions of subparagraph 1 (a) of attached Table 3.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.

Articles 2 and 3 Omitted.

ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.

Articles 2 through 16 Omitted.