Regulations on Consumer Dispute Resolution Please check the latest version of the Regulations for actual application. This English version Is continuously being updated as of July, 2007 October 2006 Korea Consumer Agency 1 Framework Act on Consumer & Enforcement Decree of the Framework Act on Consumer Framework Act on Consumer Article 12 (Remedy for Consumer Damages) ① The central and local governments shall take necessary measures so as to promptly and fairly handle consumer complaints and damages. ② The government may formulate the Regulations on Consumer Dispute Resolution for Consumer Damages by Product Item (hereinafter referred to as the “Regulations on Consumer Dispute Resolution”) in conformity with the general Regulations on Consumer Dispute Resolution for Consumer Damages as determined by the Presidential Decree, for the smooth settlements of B2C disputes. ③ The Regulations on Consumer Dispute Resolution as referred to in Section 2 shall be the norm for remedy in B2C disputes, unless otherwise stated. Enforcement Decree of the Framework Act on Consumer Article 10 (General Regulations on Consumer Dispute Resolution for Consumer Damages) The general Regulations on Consumer Dispute Resolution for Consumer Damages (hereinafter referred to as the “General Regulations on Consumer Dispute Resolution”) as prescribed in Article 12 (2) of the Framework Act on Consumer shall be as follows. 1. In the case consumer damages occur involving defective goods and services or defaults, businesses shall provide repair, exchange, refund or compensation for such damages, or shall cancel, terminate or implement contracts according to the Regulations on 2 Consumer Dispute Resolution as follows: a. Businesses shall bear the expense of repairs during the warranty period. Provided, in case mishaps or damages are caused by consumers’ faults, or such unexpected circumstances as natural disasters occur, or in case goods are deformed or damaged from repairs by individuals other than manufacturers or repair shops designated by the manufacturers; it shall not apply; b. Repairs shall be completed in time but in the case of delays due to unexpected circumstances, consumers shall be notified. In case a repaired product is not delivered to a consumer for over a month from the date of request and if it is within the warranty period, the exchange shall be made for the same or a similar type of product when the exchange for the same type is impossible. In case exchanges are provided after a lapse of the warranty period, the business shall refund the depreciated purchase price plus 10% of additional charge; c. In case similar functional or performance breakdowns reoccur within two months from the date of repair, the following repairs shall be provided for free. If repairs are impossible, however, the previous repair cost shall be returned to the consumer; d. Exchanges shall be made with the same type of product, but if an exchange for the same type of product is impossible, the exchange shall be made with a similar type of product. Provided, that in case an exchange cannot be made with the same type of product and the consumer does not wish to exchange it with a similar one, the repair cost shall be returned to the consumer; e. In the case goods were purchased at a discount, exchange shall be made for the same type of product, irrespective of differences between the original and discounted prices. If an exchange for the same type of product is impossible, the exchange shall be made with a similar product: provided, that in case an exchange cannot be made with the same type of product and the consumer does not wish to exchange it with a similar one, the repair cost shall be returned to the consumer; f. The amount of refund shall be determined based on the price of goods and services indicated on receipts. Provided, that in case disputes over the price occur, the consumer who seeks refund shall prove that the claimed amount was actually paid. If the consumer does not have a receipt that can prove the consumer’s actual payment of the claimed amount, the amount of refund shall be determined based on the commonly accepted prices in the area where the dispute has occurred. 3 2. In the case of consumer damages involving defective goods or services, the Regulations on Consumer Dispute Resolution shall be the same as indicated in Section 1. In case a contract is canceled or terminated due to a consumer’s fault, the business receives the defective product. And/Or if the return of the product is impossible, the consumer shall return a similar type of product or pay the commonly accepted market price of the product where the dispute has occurred. 3. The business, upon selling goods, shall provide the Seal of Quality that indicates the warranty period, the part replenishment period and compensation methods such as providing repairs, exchanges and refunds, or indicate the contents thereof on the goods. Provided, that in case circumstances are unsuitable to provide the contents stated on the Seal of Quality or to indicate the Regulations on Consumer Dispute Resolution on the Seal of Quality, the business may only indicate that compensation shall be provided for any damages in accordance with the Regulations on Consumer Dispute Resolution under the Framework Act on Consumer. 4. The warranty period and the part replenishment period shall be based on each of the following items. a. The warranty period and the part replenishment period shall be the period indicated in the Seal of Quality by the business: provided, that in case the warranty period and the part replenishment period set by the business are shorter than the period indicated in the Regulations on Consumer Dispute Resolution under Article 12(2) of the Act, those indicated in the Regulations on Consumer Dispute Resolution shall be the actual periods of providing warranty and part replenishment; b. In case the business fails to indicate the warranty period and the part replenishment period, the periods shall be those indicated in the Regulations on Consumer Dispute Resolution. Provided, that in case the warranty period and the part replenishment period of the product are not prescribed in the Regulations on Consumer Dispute Resolution, the periods shall be the warranty period and the part replenishment period of a similar type of product item prescribed in the Regulations on Consumer Dispute Resolution. If it cannot be dealt with thereof, the warranty period shall be one year and the part replenishment period shall be the period of durable years, which is counted from the date the production of the goods in question discontinues; c. The warranty period for used goods shall be determined in accordance with the Regulations on Consumer Dispute Resolution; 4 d. The warranty period shall be counted from the purchase date of goods and services by consumers. Provided, that in case the date of agreement and delivery date are different, delivery date will be the base of calculating the warranty period. The warranty period of exchanged goods shall be counted from the date of exchange; e. In case the date of sales is not indicated in the Seal of Quality, or the Seal of Quality or the receipt is lost or not received, or the confirmation of the purchase date is impossible, the warranty period shall be reckoned from 3 months after the date of manufacturing or customs clearance. Provided, that in case the manufacturing date or customs clearance date is not indicated on the goods or package, the business shall uphold the responsibility of proving the manufacturing date. 5. In case consumer damages occur related to goods and services, compensation shall be provided where the goods and services are sold and rendered: provided, that in the case of portable and/or transportable goods, the compensation shall be provided in the place of business. 6. Transportation cost and product test & inspection costs incurred in the process of handling consumer damages caused by the business’ fault shall be born by the business. Article 11 (Standard for Advertisement) In order to prevent consumer damages or injuries to their bodies, lives, or properties caused by wrong or excessive consumption of goods or services, the nation is responsible for setting up the criteria for advertisement contents and methods in case they fall into any one of the following conditions. 1. In case the contents of the advertisement about the purpose, ingredient, capacity, size or origin should be limited to those authorized or approved, or in case specific contents should be informed to consumers without failure; 2. In case the use of certain terms or expressions which can bring the misunderstanding of consumers should be limited; 3. In case the advertisement media or time should be limited 5 Article 12 (Application of Regulations on Consumer Dispute Resolution) 1. The Regulations on Consumer Dispute Resolution shall be applied only when parties in dispute do not express any objections, and consumers seek for the compensation in accordance with Regulations on Consumer Dispute Resolution only. 2. If the criteria under other laws and statutes are more advantageous to consumers than those in the Regulations on Consumer Dispute Resolution, the former shall take precedence over the latter. 3. If the criteria on the product in question are not prescribed in the Regulations on Consumer Dispute Resolution, the criteria for similar types of products indicated in the Regulations on Consumer Dispute Resolution shall be applied. 4. In case the Regulations on Consumer Dispute Resolution include more than two compensation methods for the same damage, the method chosen by consumers shall be applied. 6 Table of Contents Regulations on Consumer Dispute Resolution for Consumer Damages Appendix I. Product Items in Question 9 11 Appendix II. Regulations on Consumer Dispute Resolution by Product Item 1. Matchmaking Service 2. Security Service 3. National Examination Preparation Centers 4. Public Service 5. Industrial Goods 23 23 24 26 27 29 6. Performing Industry 7. Agriculture, Fishery & Livestock Products 8. Cultural Goods & Others 9. Beauty Care 10. Real Estate Brokerage 11. Photography & Photo Developing Industry 12. Maternity Care Service 59 60 62 68 69 70 71 13. Merchandise Coupons & Gift Certificates 14. Laundry & Dry Cleaning Service 15. Accommodation Service 72 74 83 7 16. Food & Beverage 17. Credit Card Industry 18. Pet Selling Industry 19. Overseas Language Training Program Agency 20. Travel Industry 21. Wedding Ceremony Service 84 85 87 88 89 96 22. Transportation Service 23. Overseas Study Program Agency 24. Satellite & Cable TV Broadcasting Service 25. Pharmaceutical & Chemical Products 26. Mobile Telecommunication Service 27. Trucking & Shipping Service 28. Internet Shopping Industry 97 111 29. Online Contents Service 30. Vehicle Towing Service 31. Vehicle Rental Service 32. Vehicle Repair Service 33. Electronic Cash Service 34. Water Purifier Rental Service 35. Parking Lots 121 124 124 126 127 128 36. Housing Construction 37. Used Home Appliance Sales 38. Used Car Sales 130 131 132 112 117 118 120 8 39. Windows & Doors Construction 40. Sports, Leisure & Discount Membership Service 41. High-Speed Internet Service 42. Courier & Delivery Service 43. Public Academic Institutes & Lifelong Learning Centers 44. Resort & Condominium Service 133 134 135 137 137 139 Appendix III. Warranty Period & Part Replenishment Period by Product Item 9 140 Regulations on Consumer Dispute Resolution for Consumer Damages Enactment 31 December 1985 Revisions 14 July 1989 25 March 1993 16 July 1994 1 April 1996 13 March 1999 19 July 1999 4 December 2000 4 December 2001 31 December 2002 1 August 2003 1 November 2004 1 October 2005 16 October 2006 Article 1 (Purpose) The purpose of this Regulations on Consumer Dispute Resolution for Consumer Damages (hereinafter referred to as the “Regulations on Consumer Dispute Resolution”) is to establish the Regulations on Consumer Dispute Resolution for consumer damages by product item according to the general Regulations on Consumer Dispute Resolution for Consumer Damages under the Enforcement Decree of the Act 10 (Article 10), so as to smoothly settle B2C disputes in accordance with Article 12(2) of the Act. Article 2 (Claim for Compensation) If a consumer and a business (hereinafter referred to as the “party”) fail to reach a compensation agreement, the party can seek redress to the central administrative agency, state or local governments, or the Korea Consumer Agency. Article 3 (Product Item & Regulations on Consumer Dispute Resolution) The product items in question and the Regulations on Consumer Dispute Resolution by product item are each described as follows (Appendix I, Appendix II and Appendix III). This Regulations on Consumer Dispute Resolution shall enter into force on August 1, 1989. (Proviso Omitted) This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. This Regulations on Consumer Dispute Resolution shall enter into force on August 1, 1994. This Regulations on Consumer Dispute Resolution shall enter into force on April 1, 1996. This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. (Proviso Omitted) (Proviso Omitted) (Proviso Omitted) (Proviso Omitted) (Proviso Omitted) (Proviso Omitted) (Proviso Omitted) This Regulations on Consumer Dispute Resolution shall enter into force on January 1, 2003. This Regulations on Consumer Dispute Resolution shall enter into force on August 1, 2003. This Regulations on Consumer Dispute Resolution shall enter into force on November 1, 2004. (Proviso Omitted) (Proviso Omitted) (Proviso Omitted) 11 <Appendix I> Product Items in Question Classification Product Description Product Items 1 Matchmaking Service Marriage Information 2 Security Service Security Services 3 National Examination National Examination Preparation Preparation Center Centers 4 Public Service Electricity Service Telephone Service 12 TV, VTR, Refrigerator, Washing Machine, Fan, Air Conditioner, Radio, Recorder, Record Player, Microwave, Rice Pressure Cooker, Electric Iron, Electric Mattress Pad, Electric Blanket, Vacuum Cleaner, Electric Furnace, Electric Frying Pan, Humidifier, Head Phone, Electric Razor, Dish Washer & Dryer, Hair Dryer, Electric Oven, Electric Healing Medicine Maker, Electric Pot, Toaster, Curling Iron, Electric Mixer, Briquet Gas Ejector, Electric Pump, Juice Extractor, Mini Pressure Regulator, Electric Dehydrator, Fluorescent Lighting, Electric Stand, Electric Door Hanger, Door Phone, Water Thermos, Electric Heater, Heating Cabinet, Ventilator, Air Purifier, Current Sensor, Water Sprinkler, Water Cooler, Ice Machine, Anti-Theft Home Appliances 5 Industrial Goods Alarm System, Ice Shaver, Chime/Bell Ringer, Game Player, Gas Furnace, Antennae, Water Purifier, Water Heater, Bidet, Soft Water Purifier, DVD Player, MP3 Player, Voice-Pen, Hand Blender, Electric Fryer, Food Steamer, Halo Plate, etc. Copy Machine, Typewriter, Facsimile, Cash Register, PC & Computer Parts, Word Processor, Calculator, Cabinet, Filing Cabinet, Bookbinding Equipment, Mimeograph, CD-ROM & Disks, Beam Project, PDA, etc. Office Supplies 13 Wire/Wireless Phone, Interphone, Car Phone, Cellular Phone, Pager (Beeper), Video Phone, Long-Distance Automatic Dialing Unit, Telephone Adapter, Fixed Switchboard & Auxiliary Device, Multi-Data System (less than 2.048Mbps, except for those used by telecommunication operators), Video Fax, TeleTax, Electronic Device Telewriter, Credit Card Authorization Terminal, Signal Converter (modem, data service device, pad), Circuit Terminal Device (subscriber protector, access plate, termination plate, telephone connector, wire broadcasting transmission system, other telecommunication equipment), etc. Light Bulbs Fluorescent Light Bulbs & Incandescent Lamps Furniture Closet (drawers, decoration furniture, cupboard, book shelf, etc.), dining table, bed, sofa, cabinet, desk, stationery chest, makeup table, etc. Automobile Passenger & Commercial Vehicles Cycle Bicycles & Motorcycles Boiler Oil/Electric/Briquet/Gas/Solar Boiler Watches Wrist Watch, Wall Clock & Table Clock Sewing Machine Household & Industrial Sewing Machine 14 Optical Goods Camera, Video Microscope, etc. Camera, Camera Parts, Telescope, Children’s Goods Baby Carriage, Tricycle, Baby Walker, Toys & Dolls, Water Toys, Goggles, Children’s Swing, Roller Skates, Assembling Toy, Textbooks & Materials, etc. Agricultural Machinery Cultivator & Auxiliary Machinery, Agricultural Tractor & Auxiliary Machinery, Agricultural Engine, Agricultural Motor, Rice Transplanter, Sowing Machine, Field Sprayer, Fertilizer Distributing Machine, Harvesting Machine, Agricultural Dryer, Rice Milling Machine, Cutter, etc. Fishing Vessel (diesel engine, depth sounder), Life Raft, Power Generator, Desiccator, Freezer, Compass, Electric Fishery Machine Thermometer, Electric Condenser, Motor, Pump, etc. Agricultural Material Agricultural Hose, Agricultural Vinyl, Vinyl Pot, Household PVC-Pipe, Plastic Tomb, Grain Dryer, etc. Fishing Gear Fish Net, Long Line, Rope, Cork, Needle, Fishing Rod, Life Vest, Fish-Luring Light (lamp, safety lamp), Ship’s Lamp, etc. Milking Machine, Milk Container, Fertilizer Mixer, Cage, Livestock Material Water Supplier, etc. 15 ◦Windows & Doors (sash, wood, door check, door lock, floor hinge, etc.) ◦Wood (plywood, floor board, parquet block, parquet flooring, technical wood, laminated wood, etc.) ◦Paint (water/oil paint, varnish, enamel paint, locker, etc.) ◦Civil Engineering & Cement (blocks, bricks and tiles) Construction Material ◦Tiles (outdoor, indoor, floor & mosaic) ◦Sanitation Equipment (bathtub, toilet, washbowl, etc.) ◦Assembling Products (concrete composites, iron & wood frames) Sink, Gas Oven/Range & Portable Gas Stove, Thermos, Aluminum/Stainless/Enamel Dishware & Pots, Spoon Set, Dishes, Glass & Crystal Ware, Frying Pan, Kettle, Food Steamer, Rice Pressure Cooker, Kimchi Refrigerator, Rice Container, Sewage Grinder, Household Gas Container & Auxiliary Equipment, Porcelain Ware, Table Ware, etc. Kitchen Goods Stationery Notebook, Fountain Pen, Crayon, Water Colors, Oil Paints, Pencil, Ballpoint Pen, Pencil Case, School Bag, Pencil Lead, Sharp Pencil, Sketch Book, Photo Album, etc. Clothing & Garments Ready-Made/Tailored Clothing, Underwear, Neck Tie, Dress Shirt, Curtain, Handmade Clothing, Bedclothes, Carpet, Sweater, Hanbok, Muffler, Blanket, Leather Goods, etc. 16 Umbrellas Umbrellas & Parasols Shoes Sneakers, Rubber Shoes, etc. Leather Goods Leather Shoes, Hiking Boots, Leather Bag, Belt, Leather Goods, etc. Musical Instrument Piano, Organ, Guitar, Violin, etc. Tires Automobile, Motorcycle & Bicycle Tires Briquet 6 Performing Industry Performing Companies (film & video screening services excluded) Pears, Apples, Peaches, Tomatoes, Watermelons, Melons, Grapes, Persimmons, Bananas, Pineapples, Radishes, Chinese Cabbages, Carrots, Cucumbers, Egg Plants, Green Fruits & Vegetables Onions, Garlic, Tangerines, Plums, Jujubes, Cabbages, Onions, Peppers, Squashes, Lettuces, Spinaches, etc. 7 Agriculture, Fishery Livestock Products Rice, Barley, Beans, Millet, Kaoliang, Red Beans, Wheat, Sesame, Peanuts, etc. & Grain Products Egg Products Eggs laid by hens & quails Meat Products Beef, Pork & Chicken Fishery Products Fish, Clams, Seaweeds, Dried Fish, etc. Animal Feed Livestock Feed & Special Feed Plant Seedlings Vegetable Seeds, Flower Seeds, Sapling, Mushroom Spore, etc. 17 8 9 Cultural Goods & Others Accessories Rings, Necklaces, Earrings, Bracelets & Other Accessories (not made of gold or gem) Recreational Sports Products Camping & Hiking Stove Kit, Copel Cookware, Tent, Exercise Gear, Rackets, Fishing Gear, Fitness Equipment, Ski Equipment, Golf Equipment, etc. Books & Records Books, Records, Video Tapes, Study Handbooks, etc. Skin Care Hair Care Beauty Care 10 Real Estate Brokerage 11 Jewelry & Gemstones Gold/White Gold/Silver/Gemstone Rings, Necklaces, Earrings, Bracelets (plated or coated in gold, white gold & silver) Real Estate Brokerage Service Photography & Developing Industry Photo 12 Maternity Care Service Photography & Photo Developing Maternity Care Centers 13 Merchandise Coupons & Gift Certificates Merchandise Coupons/Gift Certificates/Gift Cards 14 Laundry Service Laundry & Dry Cleaning Services & Dry Cleaning Photo processing & developing using cameras & camcorders 15 Accommodation Service Accommodation Facilities Hotels, Motels, Pensions, Boarding Houses & Resorts 16 Food & Beverage Soft Drinks Cola, Soda, Yogurt, Soy Bean Milk, Nectar Drink, Juice, Drinks, Barley Water, etc. 18 Confectioneries Chocolate, Dried Fruit, Biscuit, Rice Snack, Chips, Gum, Caramel, Candy, etc. Frozen Snacks Ice Cream, Ice & Other Frozen Desserts Dairy Products Milk, Powdered Milk, Condensed Milk, Fermented Milk, Butter, Cheese, Baby Formula, etc. Canned Goods Canned Fruit/Seafood/Meat Pastries Bread, Pie, Korean Rice Cake, Sponge Cake, etc. Sugar & Flour Sugar, Molasses, Flour, Soy Bean Powder, Starch, etc. Edible Oil Sesame Oil, Soy Bean Oil, Corn Oil, Ground-Nut Oil, Rapeseed Oil, Shortening, Cotton Seed Oil, Palm Oil, Margarine, etc. Mayonnaise, Seasoning Ketchup, Curry, Chemical Seasoning, Vinegar, Salt, Hot Pepper Powder, Pepper, Mustard, etc. Sauce Soy Bean Paste, Hot Pepper Paste, Soy Sauce, Soya Sauce, etc. Coffee & Tea Coffee, Black Tea, Job’s Tears Tea, Green Tea, Jujube Tea, Gugija Tea, Arrowroot Tea, Ginseng Tea, Cinnamon Tea, etc. Spaghetti, Raemyeon (Korean Noodle), Chinese Noodle, Noodles Instant Noodle, etc. Processed Meat Products Ham, Sausage, Bacon, Smoked Meats, etc. 19 Nutritious Food Ginseng, Honey, Dog Juice (male virility juice), Oak Mushroom, Aloe, Pollen, etc. Alcohol & Liquor Unrefined Liquor, Soju, Rice Wine, Beer, Fruit Wine, Foreign Wine or Liquor, etc. Lunch Package Lunch Packs Side Dish Tofu, Soft Bean Curd, Jelly, Pickled Radish, Kimchi, Salted Seafood, etc. Frozen Food Hamburger, Pork Cutlet, Shrimp, Dumpling, etc. Drinking Water Bottled Water 17 Credit Card Industry Credit Card Companies 18 Pet Selling Industry Pet Selling Companies 19 Overseas Language Training Overseas Program Agency Language Training Program Agencies 20 Travel Industry Domestic Travel Overseas Travel 21 Wedding Ceremony Service Wedding Halls Rental Buses Special Passenger Vehicles 22 Transportation Service General Commercial Vehicles Individual Commercial Vehicles Delivery Vehicles City Buses 20 Railway Transportation Air Transportation Domestic/International Airlines Maritime Transportation 23 Overseas Agency Study Program 24 Satellite & Cable Broadcasting Service Overseas Study Program Agencies TV Satellite Broadcasting Service Cable TV Broadcasting Service Medicine for Circulatory/Respiratory/Digestive Problems, Vitamins, Nutritional Supplements, Hormones, Surgical Medicine, Korean Oriental Medicine, Animal Medicine, etc. Pharmaceutical Drugs Menstrual Pad, Tooth Paste, Silver Dust, Household Pharmaceutical Products 25 Pesticide, Sterilizer, etc. Pharmaceutical & Chemical Sanitary Products Products Bandage, Gauze, Absorbent Cotton, Wet Cloth, Napkin, Tissue Paper, etc. Medical Equipment Eyesight Protection Glasses, Contact Lenses, Ionizer (ion water machine), Wheel Chair, Hearing Aid, Leg Brace, Blood Pressure Monitor, Magnetic Mattress, Bidet, Massager, etc. Soap & Synthetic Products Washing Soap, Cosmetic Soap, Liquid Soap, Powder Detergent, etc. 21 26 Mobile Service Telecommunication Cosmetic Products Shampoo, Conditioner, Cream, Lotion, Lipstick, Manicure, Hair Care, Perfume, Foundation, Mascara, etc. Agricultural Chemical Products Bactericide, Pesticide, Herbicide, etc. Fertilizer Nitrogen Fertilizer, Phosphate Fertilizer, Kali Fertilizer, Compost Fertilizer, Special Ingredient Fertilizer, etc. Plastic Products Household Plastic Ware, Foil, Wrap, Plastic-Covered Floor, etc. Rubber Gloves Rubber Gloves for Household, Industrial & Medical Use Batteries Alkaline & Manganese Battery Mobile Carriers Pager (Beeper) & Mobile Handsets 27 Trucking & Shipping Service Trucking/Shipping Companies Agents 28 Internet Shopping Industry Internet Mall Web Sites 29 Online Contents Service Online Contents 30 Vehicle Towing Service Vehicle Towing Companies 31 Vehicle Rental Service Vehicle Rental Companies & Commercial Transportation Service, Passenger Transportation Service, Delivery Transportation Service, & Trucking/Shipping Service Online Education Service, Online Data Service & Online Game Service 22 32 Vehicle Repair Service Vehicle Repair Companies Premium Automobile Repair Service, Secondary Automobile Repair Service, Convenient Repair Service, etc. 33 Electronic Cash Service Electronic Cash Network-Based Electronic Cash 34 Water Purifier Rental Service Water Purifier Rentals 35 Parking Lots Parking Lots 36 Housing Construction Housing Construction Companies Private Houses, Multi-Housing Units, Tenements & Apartment Units 37 Used Home Appliance Sales Used Home Appliances TV, Refrigerators, Washing Machines, etc. 38 Used Car Sales Used Car Sales Companies 39 Windows Construction & Doors Windows & Doors Construction Companies Swimming Pool, Fitness Center, Public Sports Center, Golf Practice Range, Bowling Alley, Aerobic Center, etc. Sports Facilities 40 Sports, Leisure & Discount Leisure Services Membership Services Event Planning Service, Farm Weekend, Wedding Agency, Ticket Reservations, etc. Discount Memberships 41 High-Speed Internet Service High-Speed Internet Services 42 Courier & Delivery Service Courier & Delivery Services Liberal Arts & Science, Engineering, Art, Home Economics, Business Affairs, Reading, etc. Public Academic Institutes & Public Academic Institutes 43 Lifelong Learning Centers Lifelong Learning Centers 23 44 Resort & Services Condominium Resorts & Condominiums 24 <Appendix II> Regulations on Consumer Dispute Resolution by Product Item 1. Matchmaking Service (1 type of industry) Product Description Marriage Information Regulations on Consumer Type of Damage Dispute Resolution Remarks 1) Contract cancellation or termination ‘At-fault’: Applied when due to business’ fault consumers can prove that -Prior to using service (arranged dates) -Refund the membership fee & false information about a 20% of total membership fee person such as marital status, occupation, and educational -After receiving service (more than -Refund Membership fee * (the one arranged dates) remaining number of arranged dates/total number of arranged dates promised) + 20% of the membership fee 25 background was, either accidentally or intentionally, disclosed by an individual to a third party. 2) Contract cancellation or termination due to consumer’s fault -Prior to receiving service (arranged dates) -After receiving service (more than -Refund 80% of the membership fee -Refund 80% of the membership fee x (remaining number of arranged dates/total number of one arranged dates) dates promised) 2. Security Service (1 type of industry) Product Description Security Services Regulations on Consumer Type of Damage 1) Different service provided from that stated in contract 2) Functional or performance defects in security system 3) Defects incurred within one month after repairing security system Dispute Resolution Remarks -Contract termination -Free repair -Product exchange or contract termination 4) Burglary due to delayed dispatch -Compensate for any damage or -In case of difficulty in after security system goes off loss proving the actual monetary 5) Contract cancellation or termination damage, it shall be within the due to business’ fault criteria indicated in the 26 -Prior to using service -After receiving service -Return of the contract amount & contract. compensate 10% of total amount of fixed monthly fees for one year -Compensate 10% of total fixed monthly fees for one year (provided, that in the case of prepayment or non-payment of the service fees, the business shall pay for the amount mutually agreed) 6) Contract cancellation or termination due to consumer’s fault -Prior to using service -After receiving service -Compensate 10% of total fixed monthly fees for one year -Compensate 10% of total fixed monthly fees for one year (provided, that in the case of prepayment or non-payment of service fees, the business shall pay for the amount mutually agreed) 27 3. National Examination Preparation Center (1 type of industry) Product Description Regulations on Consumer Dispute Resolution Type of Damage 1) Contract cancellation or termination due to a business’ fault -Prior to using service -After receiving service National Examination Preparation Centers -Return of the contract amount plus 10% of the service fee already used -Refund the total service fee after deducting the amount for service used till cancellation date plus 10% of the total service fee 2) Contract cancellation or termination due to a consumer’s fault -Refund the service fee after -Prior to using service deducting 10% of cancellation fee -After receiving service -Refund the total service fee after deducting the amount for service used till cancellation date plus 10% of the total service fee 28 Remarks 4. Public Service (2 types of industries) Product Description Regulations on Consumer Dispute Resolution Type of Damage 1) Damages from incorrect voltage -Refund the remaining balance measurement caused by breakdowns or huge range of errors of electricity meters, or miscalculation of the usage amount 2) Unfair charging of utility fees due -Refund the remaining balance to mistakes in reading meters, noninspection of meters, inaccurate labeling of meter dials, miscalculation Electricity Services of utility fees, charging for unused voltage and inspection during wrong period 3) Overlapping charges caused by -Full refund or refund the double-billings or consumers’ faults remaining balance 4) Failing to notify the plans of -Compensate for the damages suspending power supply 5) Equipment breakdowns due to excessive power supply 6) Property damage while installing electrical apparatus -Provide the repair (if repair is impossible, provide product exchange or monetary compensation) 29 Remarks 7) Damage incurred by lack of ″ separation distance between power line and equipment ″ 1) Double-billings and calculation -Refund the remaining balance errors 2) Property damage while installing a temporary communication system 3) Overcharged phone bills due to business’ fault (incorrect records of phone uses or miscalculation of the fee ) Telephone Services -Remove the installed system or compensate for monetary loss -Refund the remaining balance or deducted amount -Payment exempt or refund 4) Overdue payment resulting from non-delivery of phone bills -Compensation for damages 5) Damage incurred by discontinuation or breakdown of service for more than six hours -If only in case there is objective evidence -Provided, that in case of unexpected circumstances such as natural disasters, or accidental or intentional fault by the consumer, it shall not apply. Time of service discontinuation or breakdown shall be from the 30 time after the consumer notifies the company 5. Industrial Goods (27 types of industries) Product Description Home Appliances Type of Damage Regulations on Consumer Dispute Remarks Resolution 1) Functional or performance -Product exchange or refund defects while using the product within ten days from the date of purchase 2) Functional or performance -Product exchange or free repair defects while using the product within one month from the date of -Depreciation Calculation •Based on fixed rate policy but durable period shall be in accordance with the Corporate Tax Law (monthly allotment) •Depreciation Amount purchase 3) Functional or performance defects while using the product within the warranty period -Defects -Free repair -Repair impossibility -Product exchange or refund -Exchange impossibility -Refund =(Year of Usage/Durable Period) x Purchase Price -Occurrence of the fourth -Product exchange or refund breakdown after receiving repairs for similar defects -Fifth recurring breakdown after -Product exchange or refund 31 -In case of assembling parts for computers or record players, exchanges shall be receiving repairs for various defects -If repairs are needed within one -Refund month after product exchange 4) If contractor loses the product consumer requested for repair -Within warranty period -After the lapse of warranty period computers, the main body, -Product exchange or refund monitor and keyboard shall -Refund the depreciated purchase be considered a set. price plus 10% additional charge 5) Damages incurred by nonpossession of repair parts: -Within warranty period •Functional or performance defects -Product exchange or refund while using the product •Accidental or intentional -Product exchange & refund breakdowns caused by the purchase price after deducting the consumer amount of repair cost -After the lapse of warranty period made for each separate item; For assembling parts in a set, it shall not apply so refund shall be provided in the amount equal to the whole set. Provided, that in case of -Refund the depreciated purchase price plus 10% additional charge 32 6) Damages occurred while -Product exchange (provided, that in delivering the purchased goods case of consigning the delivery of goods to a delivery agent, the business shall have the right to claim compensation for damages toward the delivery agent) 7) Damages installment Light Bulbs occurred during -Product exchange 1) Functional or performance -Product exchange or refund defects while using the product within 30 days from the date of purchase (mishaps in light bulb base, lighting or darkening) 2) Damages occurred during -Product exchange or refund distribution process Furniture 1) Dust mites and germs -Found within 10 days from the -Product exchange or refund date of purchase -Found within two years from the -Free repair or parts exchange date of purchase -Recurring problems receiving parts exchange 2) Crooked doors after -Product exchange 33 -More than 0.5% of door length •Within six months from the date -Product exchange of purchase •Within three years from the date -Free repair or parts exchange of purchase -Within 0.5% of door length •Within three years from the date -Free repair or parts exchange of purchase 3) Efflorescence & weak coating -Within 10 days from the date of -Product exchange or refund purchase -Within six months from the date -Product exchange of purchase -Within three years from the date -Free repair or parts exchange of purchase -Recurring defects after receiving -Product exchange repairs 4) Color difference -Within one month from the date -Product exchange (refund of purchase exchange for the same furniture is impossible) 5) Color change -Within 10 days from the date of -Product exchange or refund 34 if color purchase -Within one year from the date of -Product exchange purchase 6) Strong chemical smells -Within six months from the date -Product exchange or refund of purchase 7) Standard measurement error -Product exchange (±5mm) 8) Cracks, splits & color changes in painted furniture -Within 10 days from the date of -Product exchange or refund purchase -Within one year from the date of -Free repair or parts exchange purchase 9) Cracks, splits & color changes in rattan furniture -Within 10 days from the date of -Product exchange or refund purchase -Within one year from the date of -Free repair or parts exchange purchase 10) Bed quality defect (e.g. spring, mattress) -Within 10 days from the date of -Product exchange or refund 35 purchase -Within one year from the date of -Product & parts exchange purchase 11) Sofa quality defect (e.g. color changes, rips, splits and outdated spring) -Within 10 days from the date of -Product exchange or refund purchase -Within one year from the date of -Free repair or parts exchange purchase -After the lapse of one year from -Repair (non-free) the date of purchase 12) Mishaps during delivery process -Within one month from the date -Product exchange of purchase 13) Products sold using copied -Refund brand, log and/ or design 14) Third recurring defect after -Product exchange or refund receiving repairs within the warranty period 15) Contract cancellation after payment but before receiving the 36 purchased goods: --Due to consumer’s fault -3 days before the delivery -1 day before the delivery -Refund the prepaid amount after deducting 5% of the amount -Refund the prepaid amount after deducting 10% of the amount --Due to business’ fault: •If prepaid fee is lower than 10% -Refund twice the amount of prepaid of product price fee •If prepaid fee is higher than 10% -Refund the prepaid amount plus of product price 10% additional charge 16) Damages caused by repair impossibility -Within warranty period -Product exchange or refund •Defects while using the product •Defects caused by the consumer’s -Refund the depreciated amount fault from purchase price or product exchange -After the lapse of warranty period -Refund the depreciated purchase price plus 10% additional charge or product exchange Automobile 1) Within warranty period -Warranty Period -Breakdowns due to quality or -Free repair (parts or functional •Body & Parts: within two manufacturing defects device exchange) years (provided, that in 37 -Two or more breakdowns that -Product exchange or refund affect driving performance & safety (e.g. headlight, break, engine or transmission device) within one month from the date of vehicle delivery case average mileage surpasses 40,000km, it shall expire) •Engine & Transmission Device: within three years (provided, that in case -Fourth recurring breakdown after average mileage surpasses receiving repairs for same defects 60,000km, it shall expire) or defects surpassing the accumulated repair period (30 days) -Product exchange or refund -Including but not limited to repairs by manufacturer, •Age of vehicle less than 12 (including essential costs) months -Parts exchange & functional device seller or proxy (designated •Age of vehicle over 12 months exchange in case there are remaining branch or repair shop) defects (e.g. engine or transmission device) -Repair Time Calculation •If consumers request repairs in written form to the manufacturer, seller or proxy, it shall be included in the accumulated work time (manufacturer, seller or proxy must provide and 38 distribute forms). repair request •If repairs can be made on the same day as the request date, it shall be one day; If repairs take more than one day, it shall be the total number of days (provided, that in case repairs are impossible due to public holidays, strikes and natural disasters, it shall be excluded from the accumulated work time). -Compensation exemption from non-possession of repair parts: In case of repair impossibilities among cars in accidents caused by fires and 2) Repair impossibility due to the non-possession of repair parts: ①Within warranty period -Defects while using the product collisions •Age of vehicle less than 12 -Refund (including essential costs) *Essential Cost Calculation months or product exchange -The seller bears the expense 39 •Age of vehicle over 12 months -Defects caused by driver’s fault for essential costs (e.g. -Refund the depreciated purchase registration tax, acquisition price plus 10% additional charge or tax, education tax, license product exchange plate fee, etc.) with the exception of optional fees -Refund the depreciated purchase (comprehensive insurance price or product exchange coverage, incidental fee, etc.) installment charge, notarial •With the exception optional installment fees of *Depreciation Amount •Based on fixed rate policy but durable period shall be in with the ②After the lapse of warranty -Refund the depreciated purchase accordance period price (including essential costs) plus Corporate Tax Law (monthly 10% additional charge or product allotment) exchange •Depreciation Amount= (Year of Usage/Durable Period) x Purchase Price (Essential costs included ③ Within warranty period but -Refund the 10% of the purchase such as registration tax, 40 after the lapse of durable period price (including essential costs) or acquisition tax, education product exchange tax, license plate fee, etc.) -For recognizable defects 3) In case remaining insurance (steel plates, coating, etc.), installment fee was claimed - Cancellation of the claim the consumer must notify of without prior notice in written the problem within seven form, days from the date of vehicle delivery. 4) Defects occurred while shipping -Compensation for damages, free -Person Liable and/or loading vehicles repair, product exchange or refund •Optional parts installed during shipment: auto maker 5) Defects related to optional parts •Optional parts installed after (airbag, ABS, remote control -Free repair, refund or product shipment: part installment starter, etc.) -Within warranty period exchange -Repair (non-free) company -After the lapse of warranty period Motorcycle 1) Within warranty period & -Warranty Period: within one average mileage -Breakdowns caused by quality or -Free repair or parts exchange manufacturing defects -Third recurring breakdown after -Product exchange or refund year (provided, that in case average mileage surpasses 10,000km, it shall expire) 41 receiving repairs for similar defects involving engine or transmission device (ignition device, charging equipment, starting device, etc.) -Depreciation Amount= 2) Repair impossibility due to the non-possession of repair parts: -Within warranty period •Defects incurred while using the product •Defects caused by driver’s fault -After the lapse of warranty period -Full refund (including essential (Year of Usage/Durable costs) or product exchange Period) x Purchase Price -Refund the depreciated purchase (Essential costs included price or product exchange such as registration tax, acquisition tax, education -Refund the depreciated purchase tax, license plate fee, etc.) price (including essential costs) plus 10% additional charge or product exchange 1) Functional or manufacturing -Product exchange defects within six months from the date of purchase Bicycle 2) Functional or performance defects while using the product within warranty period: -Defects -Free repair 42 -Repair impossibility -Product exchange -Fourth recurring breakdown after -Product exchange or refund receiving repairs for similar defects -Product exchange or refund -Fifth recurring breakdown after receiving repairs for various defects 1) Functional or performance -Product exchange or refund defects while using the product within 10 days from the date of purchase Boiler 2) Functional or performance defects while using the product within warranty period: -Defects -Repair impossibility -Quick exchanges -Third recurring breakdown after -Free repair -Product exchange or refund -Refund -Product exchange or refund receiving repairs for similar -Product exchange or refund defects -Fifth recurring breakdown after -Refund receiving repairs for various 43 *Calculation following exchanges & refund include construction cost for snow removal work defects -If repair needed within one month after last product exchange 3) Repair impossibility due to the -Product exchange or refund non-possession of repair parts: -Within warranty period -Refund the deducted amount after •Functional or performance defects depreciation based on purchase price while using the product or product exchange •Accidental or intentional -Refund the depreciated purchase breakdowns caused by the price plus 10% additional charge or consumer product exchange -After the lapse of warranty period -Free repair or compensation for damages (construction company liable) 4) Construction mishaps within warranty period Agricultural Machinery Fishery Machine 1) Within warranty period -Breakdowns caused by product -Product exchange defects -Breakdowns caused by quality or -Free repair 44 -The following cases require on-site repairs: •Refusal to deliver goods •Difficulty in delivery of material defects -Breakdowns caused by -Free repair manufacturing defects -Breakdowns caused by assembly -Free repair or installment defects -Occurrence of the third -Product exchange or refund breakdown after receiving repairs for similar defects -Free repair -Breakdowns caused by packaging & delivery defects 2) Repair impossibility due to the non-possession of repair parts: -Within warranty period -Product exchange or refund •Functional or performance defects while using the product -Product exchange after refunding •Accidental or intentional the amount of repair cost breakdowns caused by the -Refund the depreciated purchase consumer price plus 10% additional charge •Breakdowns after the lapse of warranty period -Compensation for damages 45 goods or delivery cost overcharging •Farming season 3) If repair takes more than 10 days (farming season) from the date of repair request, without probable cause 1) Quality defects -Product exchange or refund 2) Defective products -Compensation for damages Fishing Gear 1) Quality defects 2) Defective products -Product exchange or refund -Compensation for damages Livestock Material 1) Quality defects 2) Defective products -Product exchange or refund -Compensation for damages Agricultural Material 1) Quality defects (operational mishaps, Construction Material (Sanitation Equipment) defects, cracks, weak coating, standards deficiency, etc.) 2) Manufacturing defects (breakdowns, construction mishaps, cracks, leaks, etc.) 1) Quality defects (discoloration, color (Wallpaper) -Prior to color exchange construction: repair & compensation for damages -Repair & compensation for damages -Prior to defects, exchange standards deficiency, etc.) 2) Manufacturing defects (discoloration, plushiness, etc.) construction: product & refund; After construction: product & refund; After construction: repair & compensation for damages -Repair & compensation for damages 46 (Tile) 1) Quality defects -Prior to construction: product (discoloration, color defects, exchange & refund; After standards deficiency, etc.) construction: repair & compensation for damages 2) Manufacturing defects -Repair & compensation for (efflorescence, frost, adhesion damages defects, slab surface defects, etc.) (F.R.P. Tank) 1) Quality defects -Prior to construction: product (rusting, standards deficiency, exchange & refund; After defected clamp joint metal, etc.) construction: repair & compensation for damages 2) Manufacturing defects -Compensation for damages (leaks, rusting, defected clamp joint metal, etc.) 1) Quality defects (color defects, coagulation, etc.) (Paint) 2) Manufacturing defects -Prior to construction: product exchange & refund; After construction: repair & compensation for damages -Compensation for damages (color, gloss, coloration, paint finishing defects, discoloration, etc.) -Product exchange & refund 3) Supply shortage 47 (Cement) 1) Quality defects -Prior to construction: product (cracks, low cement strength, exchange & refund; After standards deficiency, etc.) construction: repair & compensation for damages 2) Manufacturing defects -Repair & compensation for (cracks, cement finishing defects, damages etc.) (Doors & Windows) 1) Quality defects -Prior to construction: product (operational defects, damages, exchange & refund; After standards deficiency, etc.) construction: repair & compensation for damages 2) Manufacturing defects -Repair & compensation for (construction mishaps, damages, damages etc.) (Wood) 1) Quality defects (damages, cracks, standards deficiency, color defects, dryness, etc.) 2) Manufacturing defects (damages, adhesive finishing defects, etc.) Kitchen Goods -Prior to construction: product exchange & refund; After construction: repair & compensation for damages -Repair & compensation for defects, damages 1) Functional or performance -Product exchange or refund defects occurred within one month 48 from the date of purchase 2) Functional or performance defects occurred within the warranty period: -Free repair -Defects -Product exchange -Second recurring breakdown after receiving repair 〃 -Repair impossibility -Refund -Exchange impossibility or recurrence of similar defects after productexchange 3) Damages due to the nonpossession of repair parts: -Within warranty period -Product exchange or refund •Quality, functional or performance defects while using -Product exchange after refunding the product the amount of repair cost •Accidental or intentional breakdowns caused by the -Refund the depreciated purchase consumer’s fault price plus 10% additional charge -After the lapse of warranty period 49 4) If losing the product requested -Product exchange or refund for repair: -Refund the depreciated purchase -Within warranty period price plus 10% additional charge -After the lapse of warranty period Stationery (Sharp Pencils) (Lead Pencils) 1) Breakdowns 2) Clip breaks 3) Tip breaks 4) Rusting 5) Weak pen tips -Product exchange -Parts exchange -Product exchange -Product exchange -Product exchange 1) Pencil lead breaks -Product exchange 2) Difference in actual lead density -Product exchange and labeled density 3) Shortage in quantity -Product exchange or refund (Pencils) 1) Slanted pencil or pencil point -Product exchange 2) Lead density not indicated -Product exchange 3) Unclear writing or pencil breaks -Product exchange 4) Unstable pencil point due to -Product exchange weak adhesiveness between the pencil and lead (Ballpoint Pens) 1) Writing difficulty 2) Ink chunk -Product exchange -Product exchange 50 (Pencil Cases) (Sketchbooks) (School Bags) (Photo Albums) 3) Defective pens 4) Ink leaks 5) Other damages -Product exchange -Product exchange -Product exchange & compensation for damages 1) Breaks or rips -Product exchange 2) Weak lid magnets -Product exchange 1) Loose springs 2) Rips & scatters -Product exchange -Product exchange 1) Coating peel-offs 2) Zipper breaks 3) Defective material 4) Change in shape & color -Free repair -Free repair -Product exchange -Free repair 5) Color changes/discoloration -Free repair or product exchange 1) Damage to covers or inside -Product exchange pages -Product exchange 2) Loose springs -Product exchange 3) Adhesive defects or vinyl binder cover rips 1) Separation of inner & outer -Product exchange (Notebooks) pages from detached cross tape due to weak sewing structure 2) Printing quality defect -Product exchange 3) Writing difficulty due to holes -Product exchange 51 and dots on paper 4) Different number of pages from -Product exchange labeled number 5) Difference in actual paper -Product exchange quality and labeled quality -Weight of inner/outer paper -Paper strength -Brightness 1) Writing difficulty 2) Ink tube breaks 3) Ink leaks (Fountain Pens) -Free repair or product exchange -Free repair or product exchange -Free repair or product exchange 4) Loose caps or tight caps -Free repair or product exchange 5) Clip breaks -Free repair or product exchange 6) Other damages caused by ink -Compensation for damages leaks product exchange 7) Ink dryness -Free repair or product exchange 52 & (Crayons) (Water Colors & Oil Paints) Clothing & Garments -Product exchange 1) Defective packaging -Product exchange 2) Crayon breaks prior to use -Product exchange 3) Difference between actual color and labeled color -Product exchange 4) Easy breaks -Product exchange 5) Crayon melts (in summer) -Product exchange 6) Difference in volume 7) Coloring difficulty -Product exchange 8) Decolorization -Product exchange 1) Defective packaging -Product exchange 2) Tube breaks 3) Paint dryness 4) Difference in actual color and labeled color 5) Difference in actual number of products and labeled number 6) Decolorization -Product exchange -Product exchange -Product exchange 7) Division in paint layers -Product exchange 1) Loose sewing ①Repair→②Product exchange → -Product Exchange ③Refund •For same priced or similar -Product exchange -Product exchange 53 ①Repair→②Product exchange → type of product ③Refund •For defects in one of the 3) Defective sub-material ①Repair→②Product exchange → two-piece outfits, exchanged for a whole outfit ③Refund 4) Inaccurate size ①Repair→②Product exchange → -Compensation ③Refund •For material defects on 5) Inaccurate labeling (false ①Repair→②Product exchange → tailor-made outfits, information, omission) & bad ③Refund compensation including labor material composition causing cost washing mishaps -Defect Cause Examination 2) Defective raw material •In case of difficulty in finding the cause of defect due to impossibility of product tests, the manufacturer (seller or importer) bears the burden of proving the quality of clothing in question is problem-free (limited to clothes worn for less than two years from the date of purchase) 54 6) Complaints regarding design and/or color size, -Product exchange (within seven -Compensation days from the date of purchase, only •Free repair→product if undamaged ) exchange→refund -Product Exchange & Refund •Based on purchase price: provided, that in case of goods purchased within warranty period, full refund shall be provided; if after the lapse of warranty period, it shall not apply (based on compensation rate of dry cleaning industry) -Repair or refund •Product exchanges in stores irrespective of whether it was bought at a discount price •For defects in one of the two-piece outfits, exchanged for a whole outfit •Receipt provided in case refund is requested -Compensation 7) Defective material •Compensation 55 including labor cost 1) Quality defects occurred within -Product exchange one month from the date of purchase -Breakdowns Umbrellas -Rusting -Color changes & decolorization -Leaks caused by material defects -Contamination 2) Quality defects while using the -Free repair product within warranty period 1) Loose sewing 2) Adhesive defects 3) Coloring defects Shoes 4) Sub-material defects 5) Complaints regarding design and/or color -①Free repair→②Product exchange -Compensation exemption →③Refund -①Free repair→②Product exchange →③Refund -①Free repair→②Product exchange →③Refund -①Free repair→②Product exchange →③Refund size, -Product exchange (within seven days from the date of purchase, undamaged): provided, that in case there is no available size, refund 56 •Defects consumer’s negligence caused fault by or •Outdated products -Product exchange in case of repair impossibility -Product Exchange & Refund 6) Water seeps into shoes shall be provided). For complaints regarding size, design and/or color, it shall be exchanged for more than 80% of the original purchase price and remaining difference paid in cash. -①Free repair → ② exchange →③Refund 1) Adhesive defects 2) Loose sewing Leather Goods 3) Coloring defects 4) Material defects •For goods purchased within warranty period; exchange/refund based on purchase price and goods purchased after warranty period, it shall be deducted accordance with Product (in compensation rate of dry cleaning industry) -①Free repair→②Product exchange -Product Exchange & Refund →③Refund •For goods purchased within period; -①Free repair→②Product exchange warranty exchange/refund based on →③Refund -①Free repair→②Product exchange purchase price and goods purchased after warranty →③Refund -①Free repair→②Product exchange period, it is deducted (refer to compensation rate of dry →③Refund - Product exchange (within seven cleaning industry) days from the date of purchase, 5) Complaints regarding design & undamaged): provided, that in case color there is no available size, refund shall be provided). For complaints regarding size, design and/or color, it 57 shall be exchanged for more than 90% of the original purchase price and remaining difference paid in cash. 1) Functional or performance -Product exchange or refund defects while using the product within 10 days from the date of purchase 2) Functional or performance defects while using the product within warranty period: -Defects -Free repair Musical Instrument -Repair impossibility -Exchange impossibility -Occurrence of the fourth breakdown after receiving repairs for similar defects -Occurrence of the fifth breakdown after receiving repairs for various -Product exchange or refund -Refund -Product exchange or refund -Product exchange or refund defects -If major repair is needed within -Refund one month after product exchange 58 3) Tuning -Within warranty period: 2 times -After the lapse of warranty period 1) Separation due to: -Adhesive defects Tires -Free tuning -Tuning (non-free) -Product exchange or refund -For damages resulting from manufacturing defect -Infiltration of air into the tire -Vulcanization -Infiltration of particles (sand, chemicals, etc.) -Product exchange if wear rate is less than 10% -Refund if wear rate is between 10%~80% 2) Cracking due to: -Division between tread & side -Product exchange or refund *Refund= Purchase wall -Excessive vulcanization excluded) x (1-Wear Rate) *Wear Rate (%)= (Standard Skid Depth-Skid Depth Remaining) / Standard Skin Depth x 100 3) Bead damage due to: -Infiltration of air into the bead -Vulcanization -Incorrect bead wiring -Product exchange or refund Price (VAT -Compensation Exemption •Wear rate over 80% •Repair product •Product used over three years (based on manufacture -Molding & expansion phase after vulcanization -Bead winding mishap -Adhesive defects 59 4) Chipping/chunking/cutting due -Product exchange or refund to: -Rubber adhesive defects -Excessive vulcanization 5) Joint opens due to: -Product exchange or refund -Adhesives incorrectly applied to trade joint -Adhesives incorrectly applied to wheel joint 6) Air leakage due to -Product exchange or refund -Awling work mishap -Bead/toe winding mishap 7) Different size from indicated in -Product exchange or refund the contract 8) Different supply volume from -Product exchange or refund indicated in contract Briquette 1) Standards deficiency -Product exchange -Height difference of up to 142mm 60 date if without document evidence) •Compensation claims for old tires proven to have been collected for wrongful purposes •Products with no trademark •Spare tires (bicycles included) that haven’t been used for over a year (if error is less than 5%) -Diameter difference of up to 150mm (if error is less than 5%) -Weight difference of less than 3.6kg -Heat capacity difference of less than 4,400Kcal/kg -One third of product damages during collection 2) Incomplete combustion -Product exchange -Defects found after product collection 3) Briquette & briquette ash breaks -Product exchange 4) Deficiency in combustion time -Product exchange 5) Damage to stored Briquette -User’s fault -Product exchange after deducting distribution cost by volume & weight 6) Explosion during combustion due to infiltration of particles (gunpowder) 61 -Property damage -Casualties -Compensation for damage or loss •Injuries -Medical fee & acceptable expense compensated -Mutually agreed compensation •Deaths 6. Performing Industry (1 type of industry) Product Description Type of Damage Regulations on Consumer Dispute Remarks Resolution 1) Cancellation due to: -Full refund & 10% of total admission fee compensated -Business’ fault -Full refund Performing Industry -Unavoidable circumstances such as (film & video natural disasters production excluded) 2) Refund requests -Seven days before performance date -Three days before performance date -One day before performance date -Refund after cancellation fee -Refund after cancellation fee -Refund after cancellation fee 62 deducting -For discount tickets, refund shall be provided based on the purchase price but the business shall bear 20% the burden of proof deducting 30% deducting 50% 7. Agriculture, Fishery & Livestock Products (7 types of industries) Product Description Regulations on Consumer Dispute Remarks Resolution Type of Damage 1) Inaccurate information on quantity, -Product exchange or refund content, weight, number & labeling) ◦Eggs ◦Meat Products ◦Grain Products ◦Fruits & Vegetables ◦Fishery Products 2) Rotting & Spoiling 3) Lapse of expiration date 4) Infiltration of contaminated substances 5) Side effects 6) Defective packaging -Product exchange or refund -Product exchange or refund -Product exchange or refund -Medical fee, relevant expense and disposable income compensated -Medical fee, expense and disposable income compensated Animal Feed Seedling Plantation 1) Shortage in weight 2) Rotting & Spoiling 3) Excessive amount of substance 4) Lapse of expiration date 5) Side effects -Product exchange or refund -Product exchange or refund -Product exchange or refund -Product exchange or refund -Medical fee for animals expense compensated 6) Carcass -Compensation of animal price 1) Defects found prior to seedling -Shortage in volume -Product exchange or refund -Infiltration of contaminated 63 & substances -Defective packaging -Lapse on expiration date -Rotting & Spoiling 2) In case of seed mixtures with nonsprouting & defective seeds due to -If reports on non-sprouting buds are made within 15 mutant seeds after planting -If replanting is possible days after normal sprouting -Product exchange or compensate period, compensation shall the amount of actual expenses be provided -If replanting is impossible -Direct Expenses: labor •Replanting possible to a different type -Compensation for the amount of cost, material cost, etc. of seed difference between expected and -Expected Profit actual profit =Average Harvest Volume •Replanting impossible to a different -Compensate the type of seed expected profit amount of (for the recent 3 years) * Price received by farmers 3) Difficulty in initiating & sustaining growth & sustaining growth, or bearing defective fruits (during and after plantation) -Seedling deficiency -Difference in growth status from originally advertised -Compensate the amount of difference between expected and actual profits -Compensate the amount of 64 difference between expected and -Unexpected weather conditions, actual profits, according to impure ineffective plantation technology, seedling distribution rate deficiency in seed germination, etc. 8. Cultural Goods & Others (4 types of industries) Product Description Type of Damage Regulations on Consumer Dispute Remarks Resolution 1) Shortage in content & weight -Product exchange or refund 2) Size difference -Within one month from date of -Free repair or refund purchase Jewelry & Gemstones 3) Poor coating or plating -Free repair or refund -Within one year from date of purchase 4) Difference in actual content and -Product exchange or refund labeled content (e.g. level, color, size, authentic/synthetic product, etc.) 5) Poor setting Accessories -Free repair or product exchange 1) Complaints regarding design, -Product exchange color and/or size -Within seven days from the date of 65 purchase, undamaged) 2) Poor setting -Free repair or product exchange -Separation of strap and loop 3) Poor coating or plating -Free repair or product exchange -Within six months from the date of purchase -Quality defects (damage, shortage in total page number, poor recording, etc.) -Non-distribution of contract -Excessive penalty on contract cancellation in written form within Books & Records -Product exchange -Contract cancellation -Contract cancellation penalty fee without - period of retraction -Intentional damage to packaging by -Contract cancellation the seller to limit the buyer’s right to cancel -Contracts drawn up by a seller -Contract cancellation using a fake name and a fake place of business -Contract cancellation after the lapse -Contract cancellation of retraction period deducting general expenses -Non-performance of contract after -Contract cancellation selling products 66 - after -Terminating regular subscription (based on the termination date set in the written contract) •Unavoidable circumstances of the -Refund the subscription fee for -Subscription fee shall be seller the remaining period plus 10% based on actual price paid additional charge for subscription -Refund the subscription fee for after •Unavoidable circumstances of the the remaining period consumer deducting 10% of the amount -Returning free gifts after canceling -Product return regular subscription -Compensate the purchase price -Contract cancellation after •Undamaged goods deducting loss calculated •Damaged goods according to the General Usage -Contract cancellation after the lapse Rate & Damage Rate of retraction period 67 ※General Usage Rate & Damage Rate •Higher damage rate is chosen between overall usage rate and damage rate. •Damage rate is based on the condition of each type of book or record: provided, that in case of difficulty in dividing the goods, damage rate is based on another unit. -Books a. Overall usage rate Usage Time Overall Usage Rate (%) Usage Time Overall Usage Rate (%) Less than 1 Less than 2 Less than 3 Less than 4 Less than 5 Month Months Months Months Months 20 23 27 30 40 Less than 6 Less than 7 Less than 8 Less than 9 Less than 10 Months Months Months Months Months 50 60 70 80 90 b. Damage Rate (after product return) Product Condition Damage Rate (%) Moderate condition 20 Somewhat poor condition (in which resale is impossible) 50 Very poor condition (in which overall product value is diminished) 85 68 -Records •Individually wrapped records; unwrapped products shall be considered copied and charged for the number of products unwrapped (provided, that in case of quality defects, the damage rate shall not apply even for unwrapped products) -In case books or records are sold with other products as a set •Overall usage rate and damage rate for individual products is applied Product Description Recreational Products Type of Damage Regulations on Consumer Dispute Remarks Resolution 1) Functional or performance defects -Product exchange occurred while using the product within one month from the date of purchase ※Provided, that in case of golf products, the standard period for exchange are as follows: 2) Repair impossibility due to -Product exchange manufacturing & structural defects 3) Quality, functional & performance -Free repair Sports defects while using the product 4) Occurrence of the fourth -Product exchange breakdown after receiving repairs for similar defects or fifth breakdown -Golf Club: within three months from the date of purchase -Other Products (gloves, shoes): within six months from the date of purchase after receiving repairs for various defects 5) Even if a case falls into the above four cases, if : 69 -Product exchange impossible -Refund -If breakdowns occur within 30 days after product exchange 6) If losing the product requested for repair -Within warranty period -After the lapse of warranty period 7) Damages due to the possession of repair parts: -Within warranty period -Product exchange or refund -Refund the depreciated purchase non- price plus 10% additional charge •Quality, functional or performance defects while using the product -Product exchange or refund •Accidental or intentional breakdowns caused by consumer’s -Product exchange after collecting fault the repair cost -After the lapse of warranty period -Refund the depreciated purchase price plus 10% additional charge 70 9. Beauty Care (2 types of industries) Product Description Type of Damage Regulations on Consumer Dispute Remarks Resolution 1) Different service from indicated -Contract cancellation and refund within contract after deducting Usage Cost amount * actual after deducting deducted amount for the number of days service used till cancellation date) 2) Physical injuries -Provide the amount necessary for Skin Care Hair Care -Usage Cost = the total price * actual number of days consumers used the service/ total number of days (Separate billing on the recovery from the injury, and makeup products shall be 3) Contract cancellation due to compensation if recovery is prohibited) business’ fault impossible -Prior to using service •Cancellation within 20 days from -Full refund the date of agreement •Cancellation after the lapse of 20 -Full refund & 10% additional days from the date of agreement -After receiving service charge -Refund after deducting Usage -In case of signing a Cost plus 10% of the cancellation contract based on number fee of services, refund shall be 71 provided after deducting the amount for the number of days service was used 4) Contract cancellation due to consumer’s fault -Prior to using service -Full refund •Cancellation within 20 days from the date of agreement -Refund the 10% deducted amount •Cancellation after the lapse of 20 from total usage cost days from the date of agreement -Refund the 10% deducted amount -After service starts from total usage cost for the number of days service used till cancellation date 10. Real Estate Brokerage (1 type of industry) Product Description Type of Damage Regulations on Consumer Dispute Remarks Resolution 1) Excessive withdrawal of real -Return the difference in amount estate brokerage commissions Real Estate Brokerage 2) Property damage from -Compensation for any damage or Service inattentiveness to checking & loss explaining the real estate products in question 72 11. Photography & Photo Developing Industry (1 type of industry) Product Description Type of Damage 1) Photo processing difficulty due to mishaps while developing Photography Developing & undamaged film 2) Loss of films or videotapes 3) Excessive demand on repair cost for a rental camera that was broken Photo by consumer’s fault 4) If consumers request the photographer to return the original Regulations on Consumer Dispute Remarks Resolution -Compensation for damages -Refund contract fee & compensation for damages -Bears the expense for only damaged parts & material cost -Based on pre-contractual terms -Copyright but if there are no such contracts roll of film (polaroid or digital •Return polaroid film to consumer camera film) •Digital film to be returned to consumer but the consumer shall bear the expense for materials to make the delivery 73 is not transferred when returning the original film -Photographers may keep the original film for one year 12. Maternity Care Service (1 type of industry) Product Description Regulations on Consumer Dispute Remarks Resolution Type of Damage 1) Contract cancellation before admission due to: ◦Business’ fault -Refund contract fee & 100% of -Provided, that in case the total contract fee compensated contract fee exceeds 10% of total usage cost, the ◦Consumer’s fault -After the lapse of nine days before -Contract fee non-refundable exceeding amount shall be admission date fully refunded and the -After the lapse of 10~20 days -Refund 30% of the contract fee remaining amount shall be Maternity Care Centers before admission date -Refund 60% of the contract fee -After the lapse of 21~30 days -Full refund of the contract fee before admission date -One month before admission date or within 24 hours after the lapse of agreement date 2) Contract cancellation after -Refund the amount after admission due to: ◦Business’ fault deducting total Usage Cost and 10% compensation fee -Refund 74 the amount after refunded based on the rate set in the Regulations on Consumer Dispute Resolution ◦Consumer’s fault deducting total Usage Cost plus 10% cancellation fee 13. Merchandise Coupons & Gift Certificates (1 type of industry) Product Description Type of Damage Regulations on Dispute Resolution Consumer 1) Consumers denied to be paid the -Pay the remaining amount remaining amount of the cash certificate after purchasing goods or services, even if the remaining ◦Merchandise Coupons ◦Gift Certificates ◦Gift Cards amount is within the range of “Reimbursement Rate.” 2) Consumers denied the purchase of certain goods with coupons for no reason or for reasons that it is during the discount period. 3) Consumers denied the purchase of Remarks -Reimbursement Rate =Purchase Price/Coupon Face Value •If face value exceeds 10,000 won: 60% -Provide the goods in question or •If face value is below full refund of the coupon’s face 10,000 won: 80% value •If using more than two coupons at the same time, it shall be based on the total -Allow consumers to buy goods amount of the coupon face goods with coupons because of the with the coupons change in coupon issuer under the Merchandise Coupons Act 4) Consumers denied the purchase of -Allow consumers to buy goods 75 value. Provided, that in case the purchase price and coupons are irrelevant, it shall be excluded from the goods with coupons on the ground with the coupons within the that the validation period was range of 90% of the face value passed, even if it is still within the expiration period (five years) of merchandise coupons total amount. -Compensation Liability: Coupon issuer (including the store under direct management) and the party designated by the coupon issuer (stores accepting the merchandise coupons in question) -“Merchandise Coupons”, irrespective of type, shall refer to trading securities in 5) Consumers denied cash refunds of -Allow consumers to buy goods which a consumer provides a merchandise coupons or gift with the coupons certificates, due to businesses’ nonprovision or late provision of goods or services specific amount with an issued merchandise coupon or gift certificate (in electronic or handwritten form) to a designated party (stores that accept the coupon in question), so as to purchase a certain number of goods or obtain services. 76 14. Laundry & Dry Cleaning Service (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Declororization, color changes, -Restored to original state or 1. Compensation Calculation recontamination, damage, etc. compensation for damages (1) Purchase Price x Compensation Ratio 2) Loss or disappearance of -Compensation for damages laundry material Laundry & Cleaning Services (2) Provided, that in case of a special contractual terms regarding compensation, it shall apply. 2. Partial Deduction of Compensation Amount (1) If businesses are able to prove that the damage was partly caused by the consumer’s fault. Provided, that in case the business proves that the damage was caused by another Dry person, the business shall initially provide compensation to the consumer and then exercise right to indemnity to the other person. 77 (2) If damaged laundry is delivered after gaining the consumer’s consent as well as providing compensation for damages. 3. Compensation Exemption (1) If the consumer delivers the laundry after checking for any damages based on the laundry & dry cleaning service order form (provided, that in case business’ fault is proven even though the consumer checked and found no damages, it shall not apply). (2) If the consumer does not receive the laundry past the due date & if businesses fail to deliver the laundry within 30 days from the date of notification (if disagreements occur on whether notification was made and its period, the business shall bear the responsibility of proof based on the laundry & dry cleaning service order form 78 4. Checking Laundry -Laundry & dry cleaning services are responsible for checking for any damages on garments the consumer handed over. 5. Delivery of Laundry/Dry Cleaning Service Order Form -When providing laundry/dry cleaning services, the service order form including the following items shall be given to the consumers: (1) Delivery date of laundry item (2) Expected date of completion (3) Name of product, number & price (4) Washing/dry cleaning method (5) Special features (whether there are damages, special contractual terms) (6) Name/phone number of consumer 5-1. Possible Compensation Items Compensation shall be based on the contents indicated on the service order form: provided, that in case the business leaves out the above 79 information on the order form (Section 5) or fails to deliver the order form, it shall be based on the claimed amount (irrespective of damage or type of laundry). 6. Compensation Standard for TwoPiece Outfits (1) Compensation shall be provided as one whole outfit. (2) Provided, that in case the consumer requests service for one of the two-piece outfit, it shall be provided for the article of clothing in question. 7. Allotment of Compensation Amount for Two-Piece Outfits (1) For two pieces in one set: Coat/Jacket (65%), Pants/Skirt (35%) (2) For three pieces in one set: Coat/Jacket (55%), Pants/Skirt (35%), Blouse/Vest (10%) (3) Hanbok: Skirt/Coat (50%), Pants (50%) 80 (4) If two or more pieces in one set are separately priced, it shall be based on the individual price. Compensation Ratio Classification Days Compensation Elapsed Ratio (%) 1st Stage 0~15 95 2nd Stage 15~45 85 3rd Stage 45~90 70 4th Stage 90~135 60 5th Stage 135~180 50 6th Stage 180~225 45 7th Stage 225~270 40 8th Stage 270~315 35 9th Stage 315~360 30 10th Stage 360~ 20 (1) ‘Days Elapsed’ refers to the ‘actual number of delayed days’ calculated by the number of days in a year. (2) ‘Actual Number of Delayed Days’ 81 refers to the number of days elapsed between the date of purchase, whether used or not, to the date of service request. (3) Calculation Method [Days Elapsed=Actual Number of Delayed Days/Durable Period] ※ Sample of Calculation Method [Purchase Price (100,000won), Durable Period (4 years), Actual Number of Delayed Days (240 days)] ① Calculation of Days Elapsed: 240/4=60 days ② Calculation of Compensation Ratio: Indemnification ratio for 60 days elapsed is 70% ③ Calculation of Compensation Amount 200,000 won x 70%=140,000 won Average Durable Period by Product Item Classification Product Item Purpose 82 Material Product Durable Description Period Spring/Summer Wool/Mixed Wool/Silk 4 Clothes Others 3 Men’s Suits Fall/Winter Western-Style Clothes 4 Overcoats 4 Raincoats 3 Coat Dress, Two-Piece or Three-Piece Outfit Wool/Mixed Wool/Silk 3 Others 2 Spring/Summer (Women) Fall/Winter 4 Wool/Mixed Wool/Silk Tight/Flair/Culotte Skirts, Skirt 3 Jumper Spring/Summer Dresses Others 2 Fall/Winter 3 Exercise Clothes, Sports Ware Sports Uniforms, 3 Swim Suits Jacket/Jumper Wool/Mixed Wool/Silk 3 Others 2 Spring/Summer Fall/Winter Trousers 4 Wool/Mixed Wool/Silk Trousers, Slacks, 3 Others Pantaloons, Pants 2 Spring/Summer 83 Fall/Winter 4 Sweater Sweater, Cardigan 3 Cotton Shirts, TShirts, Button-Up Shirts Shirts, 2 Turtlenecks, Dress Shirts Silk 3 Others 2 Blouse Working Uniform 2 Office School 3 Skirt/Coat/Pants/Outer Silk/Velvet Coat/Vest/Overcoat Others Hanbok 4 Silk/Cotton 3 Others 2 Scarf Clothes Accessory Muffler 3 Neck Tie 2 Foundation, Lingerie, Undergarments Underwear 2 84 Pigskin, Reptile Skin 3 Others 5 Outer Clothes Leather Goods Others 3 Fake Leather 3 Wool 6 Others 5 Cotton 5 Others 4 Natural Leather 5 Others 3 Carpet Interior Blanket /Decoration Sofa Curtain Blanket, Spring/Summer 2 Fall/Winter 3 Mattress, Bedcovers Covers 8. For damaged accessory items (fur, collars & hats), it shall be based on only the particular damaged item. Provided, that in case accessory items are an essential part of the whole outfit (winter hats), it shall be 85 calculated as a whole outfit. 15. Accommodation Service (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Contract cancellation due to business’ fault -Until five days before departure -Refund contract fee -Until two days before departure -Refund contract fee & 10% of total contract fee compensated -Until one day before departure Accommodation Facilities -Refund contract fee & 20% of total contract fee compensated -Cancellation or non-notification -Refund contract fee & 30% of of changes on/until the day of total contract fee compensated departure 2) Contract cancellation or termination due to consumer’s fault -Until five days before departure -Until two days before departure -Refund contract fee -Refund the 10% deducted from total -Refund the 0.2% 86 amount amount -Until one day before departure deducted from total -Refund the 0.3% -Cancellation or non-notification deducted from total of changes on/until the day of departure amount 16. Food & Beverage (19 types of industries) Product Description Type of Damage Regulations on Dispute Resolution ◦Soft Drinks ◦Confectioneries ◦Frozen Snacks ◦Dairy Products 1) Lack of content & quantity 2) Rotting & spoiling 3) Lapse of expiration date 4) Infiltration of contaminants -Product exchange or refund -Product exchange or refund -Product exchange or refund -Product exchange or refund ◦Canned Goods ◦Pastries ◦Sugar & Flour ◦Edible Oil ◦Processed Meat ◦Seasoning ◦Sauce led to income loss (provided, that in 5) Side effects -Provide medical cost, relevant case proof is difficult, it shall be expense and the amount of lost based on the commercial labor cost. income 6) Accidents or injuries due to -Provide medical cost, relevant damaged packaging/containers expense and the amount of lost income ◦Tea ◦Noodles ◦Nutritious Food ◦Alcohol & Liquor 87 Consumer Remarks -Amount of Lost Income: Applied when able to prove that the damage ◦Lunch Package ◦Side Dishes ◦Frozen Food ◦Drinking Water 17. Credit Card Industry (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Unauthorized use by a third -full compensation party less than 60 days prior to the damages date of report on lost/stolen cards Credit Card Companies for -Comparative fault allocation possible in case of registered members’ fault (based on credit card user stipulation) as follows: 2) Unauthorized use by a third party before receiving the issued -full compensation card damages •If the card user requests for reimbursement after the lapse of more than one year from the issuance date and is unable to prove such nonreceipt •If the card user recognizes the unauthorized use following such nonreceipt but wrongful billing still occurs due to belated reporting. 88 3) Unauthorized use by a third -Waiver of card party due to wrongful issuance of financial obligation a card using a stolen name or using counterfeit cards holder’s -Comparative fault allocation possible in case of consumers’ fault (based on credit card user stipulation) 4) If affiliate commission rates are -Return of commission from charged to the registered company credit card company affiliate 5) Rejection by card companies on -Refusal of providing refutations for the following installment payments generated reasons: after the notification date of ①Nullification, retraction, payment refusal to card cancellation or termination of company -Payment refusals including but not limited to installment payments for over 200,000 won, a written request made to the card company within the installment payment period, and must installment contracts provide reason of refutation requested by the card company. ②Delivery failure of whole or partial goods ordered ③Failure to provide collateral warranties by seller ④Installment contract failures due to other seller’s default 6) Wrongfully registered as a -Remove name from Credit credit delinquent Law Delinquent List & 89 if compensation for damage 18. Pet Selling Industry (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) If animal deaths occur within -Exchange for same type of pet -When selling pet animals, pet shop 15 days after the purchase date Pet Selling Companies or refund (provided, that in case death occurs due to consumer’s fault, compensation claim is impossible) ①Name & address of pet distributor ②Pet birth date & date of receiving the pet by seller after ③Pedigree, sex, color and special curing to its original state by features when sold the pet shop owner ④Vaccination record for immunization and pesticide 2) If animals get sick within 15 -Return days after the purchase date owners must provide a written document containing the following items to the consumers: to consumer ⑤Veterinary/medication record 90 3) If contract paper was not - Cancellation of the contract provided ⑥Health condition when sold ⑦Purchase price & purchase date 19. Overseas Language Training Program Agency (1 type of industry) Product Description Overseas Training Agencies Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Contract cancellations due to -Refund application fee & business’ fault compensation for damages 2) Contract cancellation or Language termination due to consumers’ Program fault ①Contracts including only application fee: -Non-selection of language -Refund after deducting 20% agencies or non-application for of total cost 91 overseas language training program -Preparation underway for -Refund after deducting 40% application form and other of total cost relevant documents after agency selection -Application form mailing -Refund after deducting 70% of total cost -Refund rate of agencies in question ② Application fee and language training course fee included in the is primarily applied and if not, the contract said criteria shall apply. -Until 40 days before start of -Refund the 10% amount language training course deducted from total cost -Until 30~39days before start of -Refund after deducting 20% language training course of total cost -Until 20~29 days before start of -Refund after deducting 30% language training course of total cost -Until 10~19 days before start of -Refund after deducting 40% language training course of total cost -Until 1~9 days before start of language training course -Same day as the start of language training course -Refund after deducting 50% of total cost -Refund after deducting 95% of total cost 92 20. Travel Industry (2 types of industries) Product Description Regulations on Consumer Remarks Dispute Resolution Type of Damage 1) Damages due to travel -Same stipulation applied as standard cancellation -Cancellation by travel agency due to agency’s fault contract terms for domestic travel <One Day Trip> •If notifying cancellation until -Refund contract fee until three days before departure Domestic Travel •If notifying cancellation until -Refund the contract fee plus until two days before departure 10% compensation fee •If notifying cancellation until -Refund the contract fee plus until one day before departure 20% compensation fee •If notifying cancellation or -Refund the contract fee plus notification failure on/until the day 30% of the total fee of departure <Overnight Trip> •If notifying cancellation until five -Refund contract fee days before departure 93 •If notifying cancellation until two -Refund the contract fee plus days before departure 10% of the total fee •If notifying cancellation until one -Refund the contract fee plus day before departure 20% of the total fee •If notifying cancellation or -Refund the contract fee plus notification failure on/until the day 30% of the total fee of departure -Cancellations by consumers due to consumer’s fault <One Day Trip> •If notifying cancellation until -Full refund three days before departure •If notifying cancellation until two -Consumers pay 10% of days before departure cancellation fee •If notifying cancellation until one - Consumers pay 20% of day before departure cancellation fee •If notifying cancellation or - Consumers pay 30% of notification failure on/until the day cancellation fee of departure <Overnight Trip> •If notifying cancellation until five -Full refund 94 days before departure •If notifying cancellation until two -Consumers pay 10% of days before departure cancellation fee •If notifying cancellation until one - Consumers pay 20% of day before departure cancellation fee •If notifying cancellation or - Consumers pay 30% of notification failure on/until the day cancellation fee of departure -Contract termination by consumer due to travel agency’s contractual failure (before travel) <One Day Trip> •If notifying contractual changes -Refund contract fee until three days before departure •If notifying contractual changes -Refund the contract fee plus until two days before departure 10% of the total fee •If notifying contractual changes -Refund the contract fee plus until one day before departure 20% of the total fee •If notifying contractual changes -Refund the contract fee plus or notification failure on/until the 30% of the total fee day of departure 95 <Overnight Trip> •If notifying contractual changes -Refund contract fee until five days before departure •If notifying contractual changes -Refund the contract fee plus until two days before departure 10% of the total fee •If notifying contractual changes -Refund the contract fee plus until one day before departure 20% of the total fee •If notifying contractual changes -Refund the contract fee plus or notification failure on/until the 30% of the total fee day of departure -Cancellation by travel agencies -Refund contract fee & 100% due to shortage in number of (penalty) of total contract fee travelers (fail to fulfill the notification obligation) -Compensate for any damage 2) Damages due to contractual suffered by traveler(s) failures by travel agencies (after travel) 3) Damages accidentally -Compensate for any damage or suffered by traveler(s) 96 intentionally caused by travel agencies/travel-related industries -Compensate for any damage 4) Damages due to lost/stolen or loss suffered by traveler(s) luggage or other accidents while traveling -Compensate for any damage 5) Delay in schedule or luggage suffered by traveler(s) -Includes accidental or intentional delivery failure due to travel fault by transportation companies due agencies’ accidental or intentional to breakdowns or traffic accidents fault 1) Damages due to cancellations -Compensate for any damage or loss suffered by traveler(s) -Cancellations by travel agencies due to agency’s fault Overseas Travel •If notifying cancellation 20 days -Full refund of contract fee before departure •If notifying cancellation 10~19 -Compensate 5% of total fee days before departure •If notifying cancellation 8~9 days - Compensate 10% of total fee before departure •If notifying cancellation 1~7 days - Compensate 20% of total fee before departure 97 •If notifying cancellation on/until - Compensate 50% of total fee the day of departure -Contract cancellation requests by traveler •If notifying cancellation 20 days -Refund contract fee before departure •If notifying cancellation 10~19 -Consumers pay 5% days before departure cancellation fee •If notifying cancellation 8~9 days -Consumers pay 10% before departure cancellation fee •If notifying cancellation 1~7 days -Consumers pay 20% before departure cancellation fee •If notifying cancellation on/until -Consumers pay the day of departure cancellation fee -Notifying cancellation seven days -Refund contract fee before departure due to shortage in number of travelers -Failing to notify cancellation by travel agencies due to shortage in number of travelers 98 50% of of of of •If notifying cancellation until one -Consumers pay day before departure cancellation fee •If notifying cancellation on/until -Consumers pay the day of departure cancellation fee 20% of 50% of 2) Damages due to contractual -Compensate for any damage failures by travel agencies (after suffered by traveler(s) travel) 3) Damages to accidental or -Compensate for any damage intentional fault by travel suffered by traveler(s) agencies/travel-related agencies 21. Wedding Ceremony Service (1 type of industry) Product Description Regulations on Consumer Remarks Dispute Resolution Type of Damage 1) Contract cancellations due to business’ fault -Before two months prior to -Refund Wedding Halls wedding day -After two wedding day contract compensation of 100% of the fee months prior fee plus additional to -Compensate the amount of 99 wedding cost 2) Contract cancellations due to consumer’s fault -Before two months prior to - refund of contract fee wedding day -After two months prior to -consumers pay 100% of total wedding day contract fee as cancellation penalty 3) Damages related to wedding pictures -Pictures taken without consumer -Refund the amount consent photograph cost -Stolen or damaged pictures -Free photographing requested by consumer 4) Unfair treatment due to non-use of accessory goods and facilities 5) Non-use of accessory goods and services due to business’ accidental or intentional fault compensation for damages -Refund the amount wedding cost of & of -Compensate double the amount of total usage cost 22. Transportation Service (9 types of industries) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 100 1) Transportation failure due to business’ fault -Transportation cancellation after -Refund contract fee & 50% agreement (penalty) of total fare compensated -Transportation failure due to -Fare return & compensate for ◦Rental Buses breakdowns, traffic accidents or any damage or loss suffered by ◦Special Passenger other accidents passenger(s) Vehicles 2) Different transportation service from that indicated in the contract 3) Property damage or physical injury caused by driver’s -Compensate for any damage suffered by passenger(s) -Compensate for any damage suffered by passenger(s) accidental or intentional fault 1) Burglary, damages, outage or outflow during transportation ◦General Commercial 2) Damages caused by rusting, Vehicles deterioration or delays Damages due volatile ◦Individual Commercial 3) Vehicles compounds, inflammable or pharmaceutical substances ◦Delivery Vehicles 4) Charging costs surpassing the agreed amount -Refund of fare (if prepaid) & -Provided, that in case of damages compensation for damages due to consumer’s fault or due to -Refund of fare (if prepaid) & unexpected circumstances such as compensation for damages natural disasters, it shall not apply. -Refund of fare (if prepaid) & -For damages to agriculture, fishery compensation for damages -Refund the remaining fare 101 amount and livestock products (losses, damages, outage, etc.), the current of market price shall apply based on final delivery date of transportation vehicle. 1) Lost baggage -Compensate for any damage suffered by passenger(s) 2) Transportation failure due to unexpected circumstances of business -Transportation cancellation Inter-city Buses -Stipulations set based on -Refund of fare & 10% of total transportation contract terms (express fare compensated buses) -Failure to aboard due to early -Refund of fare & 10% of total starts fare compensated -Transportation failure due to -Shortage in number of breakdowns, traffic accidents passengers: Refund the bus and/or other reason fare for the remaining distance plus 20% of the fare Continuity in travel: Provide alternative transportation service & refund 20% of the bus fare for the remaining 3) Transportation delays due to distance unexpected circumstances of business -Over 50% delay from normal -Compensate 10% of total fare 102 time -Over 100% delay from normal -Compensate 20% of total fare time 4) Property damage or physical -Compensate for any damage injury due to driver’s accidental or suffered by passenger(s) intentional fault 5) Ticket returns by passengers (postponing travel) -Before departure -Refund the total fare after deducting 10% -Lapse of two days after departure -Refund the total fare after date deducting 20% (Provided, that in the case of weekends, offdays or holidays, refund the fare after deducting 50% -Lapse of three departure date days after -Free ※Same stipulations applied as the -Due to unavoidable situations -Refund of the fare for the Railway Transportation Regulation & remaining distance National Passenger Railway -Due to reasons under the -Full refund of ticket value ( if Transportation Regulation responsibilities of the Rail the remaining distance is -Stipulations optionally applied based 1) Suspension of Service Passenger Trains 103 Corporation shorter than the minimum on passenger’s request distance, minimum fare will be paid) -Departure/Arrival: Fare refund after providing free ride -Using other railway service: allow passengers to use other railway services and pay a certain amount of cost for delays -Interruption of travel route: postpone duration of passenger tickets -Refund the amount of for delayed fare according to travel distance 104 Amount of Refund 2) Delays Time of Delay KTX 20~40min 12.5% 40~60min 25% General Trains 12.5% 60~80min 80~120min 50% Over 120 min 3) Ticket returns by passengers (postponing travel) 25% 50% -After 22:00, returning departure tickets possible until 09:00 the -Non-reserved Tickets -Refund of fare after deducting following day -Before departure minimum commission -After departure but before arrival -Refund the fare after deducting time 5% Passenger Trains -Reserved Tickets -Until 2 days before the departure -Until before the time of departure - Until 10 min after the departure -Refund of fare after deducting minimum commission -Refund the fare after deducting 10% -Refund the fare after deducting 105 - Until before the time of arrival 20% -Refund the fare after deducting 30% Freight Trains -Lost or damaged cargo -Compensation for damages Air Transportation (Domestic Flights) 1) Lost or damaged baggage -Compensate for any damage or -In case of paying advalorem tax loss (based on air transport after filing a cargo claim, it shall contract terms) be based on claimed amount 2) Flight failures due to business’ -Bear expenses including a certain accidental or intentional fault. amount of accommodation fee, if Provided, that in case of needed uncontrollable circumstances such as meteorological conditions, unexpected circumstances at airports, flight connection difficulties and unplanned equipment maintenance for safe flight, it shall not apply. ①If alternative provided -Within four hours flights are -20% of total fare compensated 106 -Cancellation of scheduled flight, reservation cancellation without confirming reservation or -After four hours -30% of total fare compensated ②If alternative flights are not -Refund of fare & provide airline provided tickets or exchange tickets for the flight in question ③If passenger(s) refuse to use -Refund of fare & provide alternative flights compensation based on the earliest passenger name, overbooking, and failure to keep passenger records who have reserved airline tickets -Alternative flights refer to that provided within 12 hours available time of alternative flights (including other airlines) in accordance with provisions in ① 3) Flight delays due to business’ -Bear expenses including a certain accidental or intentional fault. amount of accommodation fee, if Provided, that in case of needed uncontrollable circumstances such as meteorological conditions, unexpected circumstances at airports, flight connection difficulties and unplanned equipment maintenance for safe flight, it shall not apply. ① Flight delayed for more than -Compensate 20% of total fare two hours ~ within four hours ② Flight delayed fore more than -Compensate 30% of total fare four hours 107 4) Provisions on unused passenger tickets upon request for refund prior to the expiration date of tickets (or a separate period indicated in the contract -For non-cancelled reservations within said period, compensation provided after deducting the due cancellation charge; if service charge and communication cost is stipulations) due to unexpected circumstances of passengers -Nonuse of tickets -Partial use of tickets -Full refund of total fare -Refund the amount deducted from 5) Provisions for refund in case of boarding fare losing tickets applied, the latter will be deducted from the total fare. ①If not having purchased alternative airline tickets -Nonuse of lost tickets -Partial use of lost tickets -Full refund of total fare -Refund the amount deducted from ②If having purchased alternative boarding fare refund of tickets by said party or other party, and after compensation agreement for duplicate use. airline tickets -Refund on lost tickets shall be provided if: report of loss is made within the set period, after confirming the non-use and non- -Refund the amount of alternative ticket purchasing price 1) Lost or damaged cargo (International Flights) -Compensate for any damage or -Usage term of tickets for same 108 loss (based on 2) Provisions on unused passenger contract terms) tickets upon request for refund prior to the expiration date of tickets (or a separate period indicated in the contract air transport airline & flight route of lost tickets stipulations) due to unexpected circumstances of passengers -Nonuse of tickets -Refund the amount of difference after deducting applied service charge and communication cost from ticket price -Partial use of tickets -Refund the amount of difference after deducting used fare, applied service charge and communication cost from ticket price 3) Provisions for refund in case of losing tickets ①If not having purchased alternative airline tickets -Nonuse of lost tickets -Full refund of total fare -Partial use of lost tickets -Refund the amount deducted from applied fare 109 -Refund on lost tickets shall be provided if report of loss is made within the set period, after confirming the non-use and nonrefund of tickets by said party or other party, and after compensation agreement for duplicate use. ②If having purchased alternative -Refund the amount of alternative -Usage term of tickets for same airline tickets airline ticket price airline & flight route of lost tickets -Issue unused airline tickets -For duplicate use of tickets by ③Reissuing lost tickets said party or other party, agreed compensation provided and passenger bears the expense for service charge (charge for reissuing) 4) Flight failures (cancellation of -Bear expenses including a certain -Based on arriving at destination scheduled flights, cancellation of amount of accommodation fee, if -Passengers arriving past final reserved tickets, needed boarding time set by each airline OVERBOOKING, NO-RECORD, etc.) due to business’ accidental or intentional fault. Provided, that in case of uncontrollable circumstances such as meteorological conditions, shall be exempt -Except for cancellations made due to failing to reconfirm within 72 hours -Compensation amount shall not exceed maximum limit unexpected circumstances at airports, flight connection difficulties and unplanned equipment maintenance for safe -Four-hour flight time equals the distance of 3,500km 110 flight, it shall not apply. ①If alternative flight is provided -Within 4 hours from flight time •Providing alternative flight within -Provide USD 100 compensation four hours fee •Providing alternative flight after the lapse of four hours -Provide USD 200 compensation -After the lapse of four hours from fee flight time •Providing alternative flight within four hours •Providing alternative flight after -Provide USD 200 compensation the lapse of four hours fee ② If alternative flight is not -Provide USD 400 compensation provided fee ③ If passenger(s) refuse use of alternative flights -Refund of fare plus USD 400 compensation fee 5) Flight delays due to business’ -Refund 111 of fare & provide -Based on arrival destination accidental or intentional fault. Provided, that in case of uncontrollable circumstances such as meteorological conditions, unexpected circumstances at airports, flight connection compensation based on the earliest available time of alternative flights in accordance with provisions in ① -Bear expenses including a certain amount of accommodation fee, if difficulties and unplanned needed equipment maintenance for safe flight, it shall not apply. ① Flight delayed for more than two hours ~ within four hours ② Flight delayed fore more than four hours -Compensate 10% of total fare -Compensate 20% of total fare Maritime Transportation 1) Lost baggage (Domestic Passenger Ships) -Compensate for any damage or -Provided, that in case of loss (based on air transport uncontrollable circumstances such contract terms) 2) Operation failure due to business’ accidental or intentional fault 112 as meteorological conditions, unexpected circumstances at sea ports, flight connection difficulties and unplanned equipment -Cancellation of ship operation -Refund of compensation fare plus 10% maintenance for safe flight, it shall not apply. -Suspension of ship operation due to accidental fault, accident or other reason •Arrive at destination port through -Fare non-refundable (separate another passenger ship payment for delays) -Full refund of fare plus 20% •Return cruise compensation fee •Shortage in number of passengers -Full refund of fare plus 20% compensation fee 3) Business’ accidental or Provided, that in case of intentional operation delays uncontrollable circumstances such -If delayed for more than 50% -Full refund of additional fare from normal time (high-speed ships & clipper ships) as meteorological conditions, unexpected circumstances at sea ports, flight connection difficulties and unplanned equipment maintenance for safe flight, and if departing within one hour, it shall not apply. -Additional Fare Rate •Express Liners (15~20 knots): 15% added from basic fare 113 •Clipper Ships (20~35 knots): 50% added from basic fare •Clipper Ships (over 35 knots): 90% added from basic fare 4) Property damage or physical -Compensate injury due to accidental intentional fault of carriers for any damage -Burden of proving actual damage or suffered by passenger(s) lies with the passenger 23. Overseas Study Program Agency (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Contract cancellations due to -Full refund of admission fee business’ accidental or intentional & compensate for damages fault 2) Contract cancellation or termination due to the consumer’s Overseas Study fault Program Agencies -Prior to notifying of school -Refund the admission fee after selection deducting 20% -After notifying of school -Refund the admission fee after selection but prior to mailing deducting 50% enrollment documents -After mailing enrollment -Refund the admission fee after 114 documents -After receiving more than one enrollment forms -After completing departure procedure deducting 80% -Refund the admission fee after deducting 90% -No refund 25. Pharmaceutical & Chemical Products (11 types of industries) Product Description 1) Infiltration substances ◦Pharmaceutical Drugs ◦Pharmaceutical Products ◦Sanitary Products Regulations on Dispute Resolution Type of Damage of Remarks harmful -Product exchange or refund 2) Defective component 3) Rotting & spoiling 4) Lapse of expiration date 5) Shortage in volume 6) Quality, functional performance defects 7) Defective packaging containers 8) Side effects Consumer -Product exchange or refund -Product exchange or refund -Product exchange or refund -Product exchange or refund or -Product exchange or refund or -Medical fee, expense and disposable income compensated -For products that cause animal -Medical fee, expense and deaths, compensation shall be disposable income compensated provided equal to the amount of animal price 115 -Disposable Income: Applied when able to prove damage led to income loss (provided, that in case proof is difficult, it shall be based on the commercial labor cost. 1) Functional or performance -Product exchange or refund defects while using the product within one month from date of purchase 2) Functional or performance defects while using the product within the warranty period Medical Equipment -Defects -Second recurring breakdown after receiving repair -Repair impossibility -Exchange impossibility -Requiring major repairs within one month after product exchange -Free repair -Product exchange or refund -Product exchange or refund -Refund -Refund 3) Damages due to the nonpossession of repair products: -Within warranty period •Functional or performance -Product exchange or refund 116 defects while using the product exchange after •Accidental or intentional -Product breakdowns caused by consumers deducting amount for repair cost -After the lapse of warranty period -Refund the depreciated purchase price plus 10% additional charge 4) If losing the product requested for repair -Product exchange or refund -Within warranty period -Refund the depreciated purchase -After the lapse of warranty period price plus 10% additional charge -Medical fee, expense and 5) Accidents or injuries related to disposable income compensated exchanged products 1) Infiltration of substances 2) Defective component Cosmetic Products harmful -Product exchange or refund 3) Rotting & spoiling 4) Lapse of expiration date 5) Shortage in volume 6) Quality, functional -Product exchange or refund -Product exchange or refund -Product exchange or refund -Product exchange or refund or -Product exchange or refund 117 performance defects 7) Defective packaging containers 8) Side effects or -Medical fee, expense and disposable income compensated -Medical fee, expense and disposable income compensated -Medical fee provided based on diagnosis by a dermatologist for treating dermatitis. Provided, that in case damages are linked to cosmetic products and used for cosmetic surgical or beauty care purposes, it shall not apply. -Disposable Income: Applied when able to prove damage led to income loss (provided, that in case proof is difficult, it shall be based on the commercial labor cost. -For products that cause animal deaths, compensation shall be provided equal to the amount of animal price Soap & Products Synthetic 1) Lack of component & content 2) Shortage in volume Plastic Products 1) Quality defects 2) Side effects 3) Manufacturing defects -Product exchange -Product exchange -Product exchange or refund -Medical fee, expense and wage compensated -Repair or refund 118 1) Defective component -Product exchange or refund 2) Shortage in volume -Product exchange or refund 3) Damage to crops due to -Compensate the amount of defective product expense and expected profit 4) Side effect -Medical fee, expense and wage compensated Fertilizer Agricultural Products 1) Defective component -Product exchange or refund 2) Shortage in volume -Product exchange or refund 3) Lapse of expiration date -Product exchange or refund Chemical 4) Damage to crops due to -Compensate for the amount of -Expected Profit defective product expense and expected profit =Average Harvest Volume (for the past 3 years) x Farm Acquisition Price Rubber Gloves 1) Water seeps -Product exchange 2) Coloration from contact with -Product exchange sauce or other substances 3) In case of containing harmful -Product exchange substances 1) Defective battery case Batteries -Product exchange 2) Cuts in batter circuit -Product exchange 3) Inappropriate size & pricing -Product exchange 4) Defective acid battery (due to -Free repair or compensation for manufacturing defect) damages (for damages to 119 exchanged or currently used batteries) 26. Mobile Telecommunication Service (1 type of industry) Product Description Mobile Carriers Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Subscribing consumers who are -Contract cancellation under age without the consent of -After having paid the amount in advance (subscription fee, warranty parents and/or legal guardian 2) Damages incurred due to -Contract cancellation contracts signed using stolen names 3) Poor transmission quality while -Contract termination using in main area of residence (registered address, billing address fee or warranty insurance fee), charging for remaining unpaid fee & remaining penalty banned & job location) -Within 14 days from subscription -Refund subscription fee & date warranty fee (or warranty insurance fee) and deduction of 120 50% from basic charge -After the lapse of 15 days ~ -deduction of 50% from basic within 6 months from subscription charge for the latest month date -Compensation for damages 4) Service disconnections or breakdowns lasting for more than six hours -Refund 5) Additional charges for nonrequested services -Provided, that in case of unexpected circumstances such as natural disasters or accidental/intentional fault of consumers, it shall not apply. For service disconnections or breakdowns, compensation shall be provided after the consumer notifies the carrier. 27. Trucking & Shipping Service (1 type of industry) Product Description Trucking/Shipping Agents & Companies Regulations Type of Damage 1) If losing, damaging goods on Dispute Resolution breaking Consumer Remarks and -Compensation for damages -Application Criteria: trucking (provided, that in case the (moving) agents in accordance with damaged goods are insured and the Commercial Vehicle Operations 121 the insurance has already been Act. paid to the consumer, compensation shall be provided after deducting the said amount. 2) Contract cancellations due to business’ fault ①Notifying cancellation two days -Refund contract fee & prior to scheduled moving date compensate twice the amount of contract fee -Refund contract fee & ②Notifying cancellation one day compensate three times the prior to scheduled moving date amount of contract fee -Contract fee shall be rendered in the amount applicable to 10% of total sum ④Failing to notify cancellation on the same as scheduled moving date fee and actual delivery cost. -Delivery & Collection Terms •Service charge for delivery shall be -Refund contract fee & based on the bill statement after compensate four times the delivery is complete. ③Notifying cancellation on the amount of contract fee •Delivery cost shall not be charged same day as scheduled moving -Refund contract fee & exceeding the estimated sheet, but it date compensate five times the shall be charged if difference in amount of contract fee amount occurs between the estimated -Refund contract fee 122 •If the estimated fee is smaller than the actual delivery cost and if the consignor is responsible for the difference in amount, payment shall 3) Contract cancellation due to the -Refund contract fee & be based on the actual delivery cost. consumer’s fault compensate 100 times the ①Notifying cancellation prior to amount of contract fee scheduled moving date -Compensate for any damages the amount ②Notifying cancellation on the -Refund same day as scheduled moving wrongfully charged & take date necessary affirmative action -Compensate for delays except 4) Delays due to business’ fault within the scheduled time 5) Unfair additional charge for labor fee by the contractor or consignor 6) Delays due to the consumer’s fault 28. Internet Shopping Industry (1 type of industry) Regulations on Consumer Remarks Dispute Resolution Product Description Type of Damage Internet Mall Web Sites 1) Contracts using false & -Contract cancellation misleading ad phrases 2) Failure to deliver ordered goods -Contract cancellation or services compensation for damages 123 -For contract cancellations, the consumer shall be repaid for the & amount already paid within three days from the date of cancellation. 3) Deliveries past the due date stated in contract -If the purpose of goods or -Contract cancellation services have not been met by compensation for damages consumers due to delays -Others -Contract cancellation & & compensation for damages 4) Delivering damaged goods or -Product exchange or refund delivering goods and/or services different from the originally requested 5) Wrongful charges -Retraction of payment or refund the amount wrongfully charged 6) Contractual failures due to -Contract implementation, business’ fault contract cancellation or compensation for damages 29. Online Contents Service (1 type of industry) Regulations on Consumer Remarks Dispute Resolution Product Description Type of Damage Online Contents 1) Subscribing consumers who are -Contract recession 124 -After having paid the amount in under age without the consent of parents and/or legal guardian 2) Contracts (provided services) using false & misleading ad -Contract cancellation phrases 3) Terminating contracts -Refund the contract amount advance, charging for remaining unpaid fee & penalty is banned. continuous for more than a month after deducting actual service by the consumer’s fault usage fees until the cancellation plus 10% of the amount -Provided, that in case terminations are requested within seven days from the date of agreement or service date, refund shall be made after deducting the actual cost for services used without including penalty. -Usage fee includes the entire amount 4) Service disconnections or breakdowns lasting for more than three days, or accumulated time of disconnection or breakdown for -Usage fee includes the entire amount paid by the consumer (additional cost for study guidebook). paid by the consumer (additional cost for study guidebook). -Contract termination & refund -Time of service disconnection or the amount for remaining breakdowns shall be from the date service period after the consumer notifies the business. For service disconnection or one month services exceeds 72 hours breakdowns due to unexpected circumstances (natural disasters) or prior notice or fault by the business, it shall not apply. 125 5) Damages incurred due to service disconnection or breakdown for more than four hours -Extend free service period equal to three times the period of service disconnection & breakdown 6) Charges exceeding the amount -Refund the exceeding amount of actual service used -Time of service disconnection or breakdowns shall be from the date after the consumer notifies the business. For service disconnection or breakdowns due to unexpected circumstances (natural disasters) or prior notice or fault by the business, it shall not apply. -Burden of proving the excessively used services lies with the business ※Return of free gifts for subscription to online education service -If the consumer exercises the right to withdraw the contract based on relevant laws or if contract terminations due to the consumer’s unexpected circumstance •Non-use of free gifts: Return •Use of free gifts: Return after refunding the amount for damage rate equal to the market price of the same type of product (Provided, that in case 126 of simply unwrapping the package or container shall not be rendered as actually use). -For contract cancellation or termination due to business’ fault: Free gifts do not have to be returned back to the seller -If omitting the type or price of the free gift: Free gifts do not have to be returned back to the contractor 30. Vehicle Towing Service (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Overcharging consumers Vehicle Companies -Refund the difference in amount 2) Towing vehicles without -Towing to the location owner’s consent or towing to designated by the consumer or Towing relatively distant location without compensate amount for the owner’s consent additional towing fee 3) Vehicle damage due to business’ -Compensation for damages accidental or intentional fault 127 -Method of compensation shall be chosen by the consumer 31. Vehicle Rental Service (1 type of industry) Product Description Regulations on Consumer Remarks Dispute Resolution Type of Damage 1) Damages due to reservation cancellation prior to rental release ①Cancellation due to unexpected circumstances by the consumer •Notifying cancellation at least 24 -Full refund of reservation fee hours prior to rental release •Notifying cancellation within 24 -Refund the reservation fee hours prior to rental release Vehicle Companies after deducting 10% Rental ②Cancellation or contractual -Refund the reservation fee failure due to business’ unexpected plus 10% compensation fee circumstances 2) Damages due to contract termination during rental period ①Contract termination by -Refund the rental fee for the consumers remaining period after - 24 hours before the reserved date deducting 10% 128 - 24 hours after the reserved date -Provide the rental fee for the remaining period plus 10% compensation fee ②Rental impossibility from - Provide alternative rental car damages incurred prior to rental or full refund of rental fee release ③Unexpected circumstances such -Refund the amount for as natural disasters remaining rental service period 32. Vehicle Repair Service (1 type of industry) Product Description Vehicle Companies Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Recurring defects on repaired -Free repair auto part due to repair & maintenance mishaps -Age of vehicle less than two Repair years & average mileage under 40,000km: within three months (90 days) from the last repair date -Age of vehicle over two years & average mileage exceeding •Application Criteria: Vehicle auto repair & call repair services -If surpassing the scope of work under the Vehicle Maintenance Act, they shall bear expense for recurring repair cost *Auto repair centers shall be responsible for warranty service only in case of recurring defects on 129 40,000km: within two months (60 repaired auto part due to repair & days) from the last repair dater maintenance mishaps. 2) Consumers being fined for -Compensate the amount in maintenance mishap by repair question shop 3) Charging for non-requested -Payment cancellation of said -Determining the “recurring defects repair services or charging amount additional costs for services not notified in advance on repaired auto part due to repair & maintenance mishaps” shall be based on the repair estimate sheet provided by the business. Provided, that in case the repair estimate sheet is not available, repair shops shall uphold the responsibility of warranty service. 4) If repair period exceeds the due -Provide actual transportation -Repair Delay Period: The first day of date without justifiable reason cost for exceeding period repair shall be included. Provided, that in case of unexpected circumstances such as public holidays, strikes and natural disasters, it shall not apply. -Based on the date indicated on vehicle repair estimate sheet 130 33. Electronic Cash Service (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Refusing refund of balance within the validation period -If basic fee exceeds 10,000 won -Refund the balance if more -Basic fee shall be the balance after than 60% of basic fee was used the last cash recharge (balance before -Refund the balance if more -If basic fee is less than 10,000 the last cash recharge + total than 80% of basic fee was used won recharged amount) Electronic Cash -Cash recharge or refund the remaining balance after 2) Refusing refund of balance after deducting 10% the lapse of the validation period -Cash recharge or refund 3) Withdrawals exceeding the amount equal to the exceeded actual used amount amount 34. Water Purifier Rental Service (1 type of industry) Regulations on Dispute Resolution Consumer Product Description Type of Damage Water Purifier Rentals 1) Breakdowns or damages due to -Free repair, parts exchange & -Business’ 131 Remarks fault refers to the business’ fault compensation for damages 2) Contract terminations due to -Compensate amount from the business’ fault subscription fee & consumers shall pay the settled monthly rental fee based on the actual usage period until the obligatory failure or indifference to effective maintenance, defective repair, or difficulty in maintenance management of water purifiers due to poor water quality. cancellation month 3) Breakdowns or damages due to -Consumers bear expenses for -If fault lies with the business, the consumer’s fault requesting repair or parts consumers may set a period for the exchange business to fulfill obligations & consumers may terminate the contract without penalty. 4) Contract terminations due to the consumer’s fault -If obligatory usage period is less than one year -Compensate the lesser amount between the amount applicable to 0.5% of rental fee for remaining month of obligatory usage period and the amount applicable to 10% of total rental -For contractual failures due to business’ fault, the said period shall be exempt. Provided, that in case of difficulty in management of water purifiers due to transfer without consent, installment & registration fee for remaining rental service fee shall be excluded. period -If there is no set obligatory usage -Compensate the lesser amount -Rental Fee for Remaining Month= period but rental service period is between the amount applicable {Monthly Rental Fee x (Obligatory 132 less than one year to 0.5% of rental fee for Usage Period-Actual Usage Period) remaining month of rental / 30} service period and the amount applicable to 10% of purchase price -If exceeding the obligatory usage -Compensate the amount period (one year) applicable to 10% of rental fee for remaining month of obligatory usage period -If there is no set obligatory set -Compensate amount applicable period but rental service period to 10% of rental fee for exceeds more than one year remaining month of rental service period 36. Housing Construction (1 type of industry) Product Description Housing Companies Construction Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Construction & installment mishaps of rental housing -Within warranty period -Free maintenance & repair -Warranty period shall be the period set within the ‘Public Housing Management Law’ -After the lapse of warranty period -Maintenance & repair (nonfree) •Compensation Amount= (Contract Fee + Deposit) x Interest on 2) Tenant delays due to -Provide compensation or Overdue Payment x Delayed Number 133 construction completion date refund the deducted amount of Days in Tenant’s Occupation) /365• lapsing the scheduled date of from remaining balance Among the compensation amount, the tenant’s occupation amount of contract fee to be included shall be applied from the approved tenant screening since February 11, 1995 -Refundt= Occupiable Area (stated in contract) 3) Difference in occupiable area -Refund the amount equal to Unit Price x Area of Shortage (㎡) (actual area + residential housing area of shortage area) and legally registered area (real estate registration certificate) 4) Property damage due to -Compensation for damages or settlement of mortgage on rental contract cancellation housing without tenant’s consent 5) Quality difference in -Reconstruction or refund the construction materials and amount of difference installment compared to model houses 134 37. Used House Appliance Sales (1 type of industry) Product Description Used House Appliances ◦TV ◦Refrigerator ◦Washing Machine Type of Damage Regulations on Dispute Resolution Consumer Remarks 1) Functional or performance -Free repair or compensate the -Warranty possibility & warranty defects while using the product amount of repair cost (if repair is period differs according to within warranty period impossible, refund shall be individual contracts. provided) 2) Failing to explicitly notify warranty period -Functional or performance -Free repair or compensate the -If failing to explicitly notify defects while using the product amount of repair cost (if repair is warranty period to consumers, the within warranty period impossible, refund shall be warranty period shall be six months. provided) -Fourth recurring breakdown after -Refund receiving repairs for similar defects or fifth recurring breakdown after receiving repairs for various defects within the warranty period 38. Used Car Sales (1 type of industry) Product Description Type of Damage Regulations on Dispute Resolution 135 Consumer Remarks 1) Damages due to seller’s failure -Compensation for damages or indifference to register transfer of ownership 2) Transferring costs (including -Compensation for damages commission) born by the seller to the buyer Used Car Companies Sales 3) Defects caused by nonprovision or provision of false vehicle inspection records 4) Unilateral contract cancellation by seller -Compensate repair cost the amount of -Compensate the amount equal to twice the amount of contract fee 5) Defects occurred within parts -Free repair or compensate the ※Warranty possibility, warranty replenishment period amount of repair cost period & warranty parts differs according to individual contracts 39. Windows & Doors Construction (1 type of industry) Regulations on Dispute Resolution Product Description Type of Damage Windows & Construction Companies 1) Construction mishaps (cracking, leaking, damages, etc.) -Within warranty period -Free repair -After the lapse of warranty period -Repair (non-free) Doors 136 Consumer Remarks 2) Standards deficiency -Reconstruction (under the responsibility of the construction company) or refund the difference of amount from 3) Contract cancellations due to construction cost business’ fault -Refund the prepaid amount plus 10% of total construction cost as 4) Contract cancellations due to compensation fee consumer’s fault -Within two months till scheduled -Scheduled installment date & installment date (tenant’s tenant’s occupation date shall be the occupation date) date indicated in the said contract •If only having signed contracts or completed area measurement -Consumers pay contract amount as penalty but the penalty •If having completed amount should not exceed 10% -Burden of proving actual damage manufacturing or installment of total construction cost cost lies with the company -Compensation for damages 40. Sports, Leisure & Discount Membership Services (3 types of industries) Product Description ◦Sports Type of Damage Regulations on Consumer Remarks Dispute Resolution Facilities 1) Difference in the provided -Contract cancellation 137 -With the exception of Article 19 of (swimming pool, fitness goods or service and indicated center, tennis court, within contract public sports facility, golf practice range, etc.) 2) Facility use impossibility due to -Refund or provide alternative facility breakdowns or exceeding use of similar type of facilities ◦Leisure Facilities (event planning service, the regular number of members the ‘Act on Installment & Use of Sports Facilities’ and Article 18 (Membership-Based Sports Facility Business) of the ‘Enforcement Decree of the Act’ •Membership-Based Sports Facilities: golf ranges, ski resorts, yacht clubs, recreational sports facilities, etc. farm weekend, wedding agency, ticket 3) Physical injuries -Compensation for damages reservations, etc. ◦Discount Memberships 4) Contract cancellations due to (Businesses operating business’ fault on membership fees -Prior to service date -Full refund plus 10% of total -‘Service Date’: after acquiring various usage cost as compensation If service date is based on the number affiliates involved different fields) in -After the lapse of service date -Refund the amount after of days, it shall be applied from the deducting actual usage cost and first date of use; if based on the 10% cancellation fee period, it shall be applied from the first period of use. 5) Contract cancellations due to -Refund total usage cost after -Additional charge for sports consumer’s fault deducting 10% accessories (rackets, exercise wares, -Prior to service date sneakers, etc.) is banned. Provided, 138 -Refund the amount after that in case the said cost is included in deducting actual usage cost and the contract, it shall not apply. 10% cancellation fee -After the lapse of service date 41. High-Speed Internet Service (1 type of industry) Product Description Regulations on Consumer Dispute Remarks Resolution Type of Damage 1) Subscribing consumers who are -Contract recession under age without the consent of parents and/or legal guardian -After having paid the amount in advance, charging for remaining unpaid fee & penalty is banned. 2) Third recurring breakdown after -Product exchange -Time of service disconnection or receiving repairs for equipment defects (rented modem) High-Speed Services Internet 3) Five or more recurring service breakdowns lasting for more than one hour or the accumulated time of disconnection or breakdown breakdowns shall be from the date after the consumer notifies the business. For service -Contract termination without disconnection or breakdowns due penalty (including excluded to unexpected circumstances installment fee upon subscription (natural disasters) or prior notice & discount rates) (circuit repair) or fault by the exceeds 72 hours for one-month services business, it shall not apply. 4) -Provided, that in case damages Service disconnections or -Compensation for damages 139 breakdowns lasting for more than three days or exceeding the monthly accumulated time (12 hours) due to unexpected circumstances such as natural disasters or accidental/intentional fault by the consumer, it shall not apply. Time of service disconnection or breakdowns shall be from the date after the consumer notifies the business. 5) Delayed installments -Cancellation of reserved services -Compensation Calculation: Average Daily Cost of Services Used for 3 Months (also applied for services used less than 3 months) x Time of Service Disconnection or Breakdowns / 24 42. Courier & Delivery Service (1 type of industry) Regulations on Consumer Product Description Type of Damage Courier & Services 1) Delivering lost or damaged -Refund the amount of delivery products cost (prepaid) & compensation for damages Delivery Dispute Resolution 140 Remarks 2) Late delivery 〃 3) Ineffective after measures upon the absence of receiver 〃 -In case of visitation sign-ins and contacting the receiver upon his/her absence, it shall not apply. 41. Public Academic Institutes & Lifelong Learning Centers (2 types of industries) Product Description Regulations on Dispute Resolution Type of Damage Remarks ※Upon signing the contract, the cost for the lecture, textbooks & materials must be separately 1) Contract cancellation by trainees (students) upon learning of business’ unfair practices ①Contracts using misleading ad phrases Consumer & -Contract cancellation & full indicated or notified. refund of lecture fee ②Receiving & providing lectures to -Contract cancellation & full Public Academic trainees (students) exceeding the refund of lecture fee Institutes & Lifelong regular number of trainees (students) Learning Centers ③Course lectures provided by -Contract cancellation & full unqualified lecturers (provided, that refund of lecture fee false the qualification standard of lecturers shall be based on the Public Academic Institute Act & the Lifelong Education Act) 141 2) Contract cancellations by trainee -Refund the lecture fee for the -calculation (students) while continuing to remaining period Based on daily lecture fee receive education after finding out about the above mentioned unfair practices 3) Difficulty in taking courses due to -Refund the lecture fee for the -Refund the amount within five administrative measures (transfer or remaining period days from the date of incidence registration cancellation of academic institutes) or business’ unexpected circumstances (relocation or closedown of academic institutes) 4) Contract cancellations due to the unexpected circumstance of the trainee (student) ①Prior to the first month of the date -Refund lecture fee when lecture begins -Applied regardless of lecture period (over one month) -Include starting date of lecture ②After the lapse of the month of -Refund the lecture fee for the class the date when lecture begins remaining month, except for the month in question 142 44. Resort & Condominium Service (1 type of industry) Product Description Type of Damage Regulations on Consumer Remarks Dispute Resolution 1) Difference in provided service -Contract cancellation and indicated within contract Resorts Condominiums & 2) Usage delay due to the -Compensate for the amount construction completion date applicable to the delayed dates exceeding the scheduled due date from the actual reserved date to the actual usage date 3) Overcharging -Refund the amount of difference <Appendix III> Warranty Period & Parts Replenishment Period by Product Item 143 -Compensation Calculation= (Contract Fee + Deposit) x Interest for Overdue Payment x (Delayed Dates/356) Product Item Warranty Period Parts Replenishment Period 1. Vehicles ◦Main Body & Parts: within two years ◦Eight years (provided, that in case similar (provided, that in case average mileage exceeds parts are provided for use within the scope in 40,000km, the warranty period shall expire) which functional & performance defects are ◦Motor (engine) & Transmission Device: within not found) three years (provided, that in case average mileage exceeds 60,000km, the warranty period shall expire) 2. Motorcycles ◦Three years (provided, that in case similar ◦Within one year (provided, that in case average parts are provided for use within the scope in mileage exceeds 10,000km, the warranty period which functional & performance defects are shall expire) not found) 3. Boilers ◦Two years 4. Agricultural & Machinery 1) Agricultural Machinery ◦Seven years Fishery ◦Motor & Transmission Device: Two years (provided, that in case average mileage ◦Seven years (provided, that in case similar exceeds 2,500km or usage time exceeds 500 parts are provided for use within the scope in hours (Combine: 200 hours), the warranty which functional & performance defects are period shall expire) not found) 2) Fishery Machinery ◦One year 5. Home Appliances/Office Supplies/Electric & Electronic Goods/Optical Goods/Kitchen 144 Goods 1) Finished Goods -Air Conditioner ◦Two years -Electric Furnace (fan heater, rotary ◦Two years heater), Fan, Humidifier ◦Seven years ◦Five years -TV, Record Player, Refrigerator, ◦One year Microwave -VTR, Washing Machine, Vacuum ◦One year Cleaner, Video Camera, Camera, Electric Dryer, Ventilator, Electric Water Heater, Water Cooler, Digital Piano, Wire/Wireless Phone, Gas ◦Seven years ◦Five years Oven Range, Word Processor, Electric Typewriter, Facsimile, Car Phone, Pager (Beeper), Water Purifier -PC & Computer Parts (printer, ◦One year monitor), Juice Mixer, Electric Rice ◦Four years Pressure Cooker -Mobile Phone, Rice Pressure ◦One year Cooker, Frying Pan, Multi-Food Cooker, Fryer, Electric Pot, Electric ◦Three years 145 Healing Medicine Maker, Grinder, Electric Toaster (Oven Toaster), Water Kettle/Tea Pot, Water Thermos, Massager, Hair Dryer, Electric Razor, Electric Blanket, Electric Mattress Pad, Telescope, Microscope -Copy Machine ◦Six months: provided, that in case the number ◦Five years of copies differ according to size of copying machine (small: 30,000 copies/medium: 60,000 copies/large: 90,000 copies) 2) Core Parts -TV (CPT), Refrigerator ◦Four years (provided, that in case of CDT (Compressor), Air Conditioner monitors in which timers are installed and (Compressor), Monitor (CDT) which exceeds 10,000 hours, the warranty period shall expire) -Washing Machine (Motor), ◦Three years Microwave (Magnetron), PC (Mother Board), VTR (Head Drum), Video Camera (Head Drum), Fan Heater (Burner), Rotary Heater (Burner) 146 6. If there is no set period ◦One year ◦Five years 147