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ENFORCEMENT DECREE OF THE INSTALLMENT TRANSACTIONS ACT

Wholly Amended by Presidential Decree No. 22388, Sep. 17, 2010

Amended by Presidential Decree No. 22637, Jan. 24, 2011

Presidential Decree No. 24436, Mar. 23, 2013

Presidential Decree No. 26036, Jan. 6, 2015

Presidential Decree No. 26932, Jan. 22, 2016

Presidential Decree No. 27971, Mar. 29, 2017

Presidential Decree No. 27987, Apr. 11, 2017

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Installment Transactions Act and matters necessary for the enforcement thereof.
 Article 2 (Scope of Consumers)
"Person who trades with the same status and under the same transaction conditions as those applicable to the person referred to in item (a), as prescribed by Presidential Decree" in subparagraph 5 (b) of Article 2 of the Installment Transactions Act (hereinafter referred to as the "Act") means any of the following persons: <Amended by Presidential Decree No. 24436 on Mar. 23, 2013>
1. An end-user of goods or services (hereinafter referred to as "goods, etc."): Provided, That a person who uses goods, etc. as raw materials (including intermediary goods) or capital goods shall be excluded herefrom;
2. A business operator who falls under the proviso to subparagraph 1 of Article 3 of the Act and who purchases goods, etc. (limited to the business relationship involving such goods, etc.);
3. A person who purchases goods, etc. for agricultural (including stock farming) or fishery activities, other than a sea-going fisherman who has obtained a permit from the Minister of Oceans and Fisheries under Article 6 (1) of the Distant Water Fisheries Development Act.
 Article 3 (Scope, etc. of Specially-Related Persons)
(1) "Specially-related person determined by Presidential Decree" in subparagraph 7 (a) of Article 2 of the Act means any of the following persons:
1. Where a controlling shareholder is a private individual, any of the following persons:
(a) That shareholder's spouse;
(b) Relatives by blood within the sixth degree of relationship or relatives by marriage within the fourth degree of relationship to that shareholder;
(c) A corporation, at least 30 percent of the total number of issued shares or equity of which is held by that shareholder solely or together with persons in a relationship provided for in item (a) or (b), and its executives;
(d) A corporation, at least 30 percent of the total number of issued shares or equity of which is held by that shareholder solely or together with persons in a relationship provided for in items (a) through (c), and its executives;
2. Where a controlling shareholder is a corporation, any of the following persons:
(a) Any of its executives;
(b) Any of its affiliate companies (referring to affiliate companies under subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act) and its executives.
(2) "Person who actually controls the management of the corporation concerned" in subparagraph 7 (b) of Article 2 of the Act means any of the following persons:
1. A person who appoints or dismisses a representative director or appoints or is able to appoint at least 50/100 of executives, solely or by contract or agreement with other shareholders or investors;
2. A person who exerts dominant influence on major decisions or business operations of the corporation concerned, such as a change in its organizational structure or investment in a new business.
 Article 4 (Transactions Exempted from Application of the Act)
"Transaction of goods, etc. prescribed by Presidential Decree" in subparagraph 2 of Article 3 of the Act means any of the following transaction of goods, etc.:
1. Agricultural, fishery, livestock, forest, or mineral products not produced by the manufacturing sector under the Korea Standard Industrial Classification prepared in accordance with Article 22 of the Statistics Act;
2. Drugs under subparagraph 4 of Article 2 of the Pharmaceutical Affairs Act;
3. Insurances under the Insurance Business Act;
5. Real property.
 Article 5 (Method, etc. of Calculating Actual Annual Rate of Installment Commission)
(1) The method of calculating an actual annual rate of installment commission referred to in Article 7 of the Act shall be as set out in attached Table 1.
(2) The ceiling of an actual annual rate of installment commission under paragraph (1) shall be 25/100 per annum. <Amended by Presidential Decree No. 26036 on Jan. 6, 2015>
 Article 6 (Limitation of Consumer’s Withdrawal of Offer)
(1) "Goods, etc. determined by Presidential Decree" in Article 8 (2) 2 of the Act means any of the following goods, etc.: <Amended by Presidential Decree No. 27971, Mar. 29, 2017>
1. Ships under the Ship Act;
2. Aircraft under the Aviation Safety Act;
3. Vehicles running on railroads under the Railroad Service Act and the Urban Railroad Act;
4. Construction machinery under the Construction Machinery Management Act;
5. Automobiles under the Automobile Management Act;
6. Cases of installing any of the following goods, installation of which requires professional skills and additional components:
(a) Freezers under subparagraph 4 of Article 3 of the High-Pressure Gas Safety Control Act;
(b) Air conditioners (including two-way air conditioners);
(c) Boilers.
(2) "Cases determined by Presidential Decree" in Article 8 (2) 5 of the Act means any of the following:
1. An installment contract, whose installment value is less than 100 thousand won: Provided, That it refers to an installment contract, hose installment value is less than 200 thousand won, in the case of an installment transaction by using a credit card under the Specialized Credit Finance Business Act;
2. An installment contract, the purpose of which is to provide goods, etc. individually produced according to consumers’ needs.
 Article 7 (Rate of Damages for Delay)
"The rate prescribed by Presidential Decree" in the latter part of the main sentence of Article 10 (2) of the Act means 15/100 per annum. <Amended by Presidential Decree No. 26932, Jan. 22, 2016>
 Article 8 (Expenses Claimable where Goods, etc. have been Partially Consumed)
"Amount as prescribed by Presidential Decree" in Article 10 (9) of the Act means any of the following amounts:
1. Where it is difficult to resale consumable parts due to the use of goods, etc. or the resale price of consumable parts reduces sharply, the amount incurred in providing such consumable parts;
2. In cases of goods, etc. comprised of several separable parts, the amount incurred in providing the parts consumed by the partial use.
 Article 9 (Calculation of Damages for Delay)
"Rate prescribed by Presidential Decree" in Article 12 (1) of the Act means the rate agreed by and between an installment business operator or credit provider and a consumer.
 Article 10 (Acceleration of Consumer’s Obligation)
"Cases as prescribed by Presidential Decree" in Article 13 (1) 2 of the Act means any of the following:
1. Where a consumer emigrates to a foreign country to earn money;
2. Where a consumer emigrates to a foreign country due to a marriage or any other special relationship with a foreigner.
 Article 11 (Restriction on Consumer's Defense)
"Amount prescribed by Presidential Decree" in Article 16 (2) of the Act means 100 thousand won: Provided, That in cases of installment transactions using a credit card under the Specialized Credit Finance Business Act, such amount means 200 thousand won.
 Article 12 (Procedures for Registration, etc. of Prepaid Installment Business Operators)
(1) A prepaid installment business operator who intends to file for registration under Article 18 (1) of the Act shall file an application prescribed by Ordinance of the Prime Minister with the Special Metropolitan City Mayor, the Metropolitan City Mayor, the Metropolitan Autonomous City Mayor, the Do Governor, or the Special Self-Governing Province Governor who has jurisdiction over the domicile of its principal place of business (hereinafter referred to as the "Mayor/Do Governor"), along with the documents specified in Article 18 (1) 2 through 4 of the Act. <Amended by Presidential Decree No. 26932, Jan. 22, 2016>
(2) Where the Mayor/Do Governor who has received an application under paragraph (1) finds none of the documents referred to in Article 18 (1) 2 through 4 of the Act attached to the application or finds any error or defect therein, he/she may request the relevant prepaid installment business operator to supplement such within a prescribed period not exceeding ten days.
(3) The Mayor/Do Governor who has received an application for registration under paragraph (1) shall, if the application meets the requirements for registration, issue a certificate of registration set forth in Ordinance of the Prime Minister.
(4) A person who intends to file a report on a change under Article 18 (3) of the Act shall submit to the Mayor/Do Governor a written report set forth in Ordinance of the Prime Minister along with the document supporting the relevant change within 15 days from the date of occurrence of such change, and the Mayor/Do Governor in receipt of the report shall confirm such change and re-issue the certificate of registration, stating such change: Provided, That with regard to any change caused by the rescission, expiration, etc. of a consumer damage compensation insurance contract, etc. under Article 18 (1) 3 of the Act, a document supporting such change shall be submitted to the Mayor/Do Governor by not later than one month prior to the rescission or expiration date of such contract.
(5) A person who intends to file a report to suspend or discontinue his/her business or recommence his/her business after suspension of business under Article 18 (4) of the Act shall submit to the Mayor/Do Governor a written report set forth in Ordinance of the Prime Minister by not later than one month prior to the occurrence of the event. In such cases, a person filing a report to discontinue his/her business shall attach the previously-issued certificate of registration to the written report.
 Article 13 (Procedures for Disclosure of Information on Prepaid Installment Business Operators)
(1) Where the Free Trade Commission discloses information concerning any prepaid installment business operator under Article 18 (5) of the Act, it shall notify the prepaid installment business operator of the purpose, details, period, methods, etc. of the disclosure by not later than 15 days prior to the date of such disclosure of information.
(2) A prepaid installment business operator who has received notification under paragraph (1) may, if information to be disclosed is factually incorrect or matters falling under the proviso to the main body of Article 18 (5) of the Act, file a written request to rectify or not to disclose such incorrect information with the Fair Trade Commission along with the document, certifying the fact by not later than five days prior to the date of the disclosure of information. In such cases, the Fair Trade Commission may change the information to be disclosed or not disclose the relevant information, if it deems that the request by the prepaid installment business operator is justifiable.
(3) Where data submitted by a prepaid installment business operator pursuant to Article 18 (6) of the Act is vague, the Fair Trade Commission may require the prepaid installment business operator to change or supplement necessary parts within a prescribed period as it deems reasonable.
(4) Matters necessary for the disclosure of information concerning a prepaid installment business operator, other than those set forth in paragraphs (1) through (3), shall be determined and publicized by the Fair Trade Commission.
 Article 13-2 (Procedures and Methods for Submission and Disclosure of Accounting Audit Reports)
(1) Pursuant to Article 18-2 (1) of the Act, a prepaid installment business operator shall submit to the Fair Trade Commission an accounting audit report (referring to an audit report prepared by the auditor defined under Article 3 of the Act on External Audit of Stock Companies in accordance with Article 7-2 of the aforesaid Act; the same shall apply hereafter in this Article) in the form of a document (including electronic documents [referring to the electronic documents defined under subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions; the same shall apply hereinafter]).
(2) Pursuant to Article 18-2 (2) of the Act, the Fair Trade Commission shall post accounting audit reports on its website within four months from the end of each fiscal year.
(3) Pursuant to Article 18-2 (2) of the Act, a prepaid installment business operator shall disclose an accounting audit report to the public for three years from three months after the end of each fiscal year by both of the following methods:
1. Keeping the report in the head office of the prepaid installment business operator for the general public to peruse;
2. Posting the report on the website of the prepaid installment business operator for the general public to access.
(4) Except as otherwise provided in paragraphs (1) through (3), matters necessary for the procedure and methods for the submission and public disclosure of accounting audit reports shall be prescribed and publicly notified by the Fair Trade Commission.
[This Article Newly Inserted by Presidential Decree No. 26932, Jan. 22, 2016]
 Article 14 (Public Announcement and Reporting of Succession of Status of Prepaid Installment Business Operator)
(1) "The date specified by Presidential Decree" in the main body of Article 22 (2) of the Act means the date specified in the following for a merger, a division, and an entire transfer of business respectively: <Newly Inserted by Presidential Decree No. 26932, Jan. 22, 2016>
1. In cases of a merger by absorption (including merger after division): The date on which a resolution on the merger is adopted at the general meeting of shareholders or members of the merged company or all members of the merged company consent to the merger: Provided, That the relevant date specified in the following shall apply in either of the following cases:
(a) Where the approval of the general meeting is replaced by the approval of the board of directors under Article 527-2 (1) of the Commercial Act: The date on which the board of directors resolves to approve a merger;
(b) Where the company surviving a merger under Article 600 (1) of the Commercial Act is a stock company: The date on which the merger is authorized by the competent court;
2. In cases of a consolidation (including merger after division): The date on which a resolution on the consolidation is adopted at the general meeting of shareholders or members of each consolidated company or all members of each consolidated company consent to the consolidation: Provided, That the date on which the consolidation is authorized by the competent court shall apply, if the company resulting from the consolidation under Article 600 (1) of the Commercial Act is a stock company;
3. In cases of a division (including physical divisions under Article 530-12 of the Commercial Act): The date on which a resolution on the division is adopted at the general meeting of the divided company;
4. In cases of an entire transfer of business: The date on which a resolution on the transfer of business is adopted at the general meeting of shareholders or members of the transferor company: Provided, That the date on which the board of directors resolves to approve the transfer of business, where the approval of the general meeting may be replaced by the approval of the board of directors under Article 374-3 (1) of the Commercial Act.
(2) A person who intends to file a report on the succession of the status of a prepaid installment business operator under Article 22 (3) of the Act shall submit to the Mayor/Do Governor a written report in the form prescribed by Ordinance of the Prime Minister, along with the document evidencing the succession, within 15 days from the date the person succeeds to the status. <Amended by Presidential Decree No. 26932, Jan. 22, 2016>
(3) Upon receipt of a report under paragraph (2), the Mayor/Do Governor shall verify matters relevant to the succession of status and re-issue the certificate of registration of the succession of status. <Amended by Presidential Decree No. 26932, Jan. 22, 2016>
 Article 14-2 (Methods, etc. for Reporting Transfer of Prepaid Installment Contracts)
(1) "The assets related to prepaid installment contracts specified by Presidential Decree" in the main body of Article 22-2 (5) of the Act means the residual assets after subtracting liabilities, except advances, from all assets related to prepaid installment contracts of the transferor prepaid installment business operator (referring to the prepaid installment business operator who transfers prepaid installment contracts to another business operator: the same shall apply hereafter in this Article). The assets of the transferor prepaid installment business operator in such cases shall be limited to those that may be reported as assets in the financial statements prepared in accordance with the accounting standards under Article 13 (1) of the Act on External Audit of Stock Companies (including consolidated financial statements, in cases of a company that shall prepare consolidated financial statements) at the time of conclusion of a transfer agreement on prepaid installment contracts (hereinafter referred to as "transfer agreement").
(2) A prepaid installment business operator to whom prepaid installment contracts are transferred shall prepare a report on the transfer agreement in accordance with Article 22-2 (7) of the Act and shall submit the report to the relevant Mayor/Do Governor, along with the following documents evidencing the transfer agreement, as prescribed by Ordinance of the Prime Minister. In such cases, the lists or documents specified in subparagraphs 2 through 4 may be submitted in the form of an electronic document:
1. A transfer agreement;
2. A list of all consumers who signed a prepaid installment contract with the transferor prepaid installment business operator;
3. A list of all consumers who consent to the transfer agreement (including the consumers who are deemed to consent under the proviso to Article 22-2 (2) of the Act; the same shall apply hereafter in this paragraph);
4. Documents evidencing the following amounts:
(a) Total amount of the advances paid by consumers who signed a prepaid installment contract with the transferor prepaid installment business operator;
(b) The amount of advances paid by consumers who do not consent to the transfer agreement;
(c) The amount of advances paid by consumers who consent to the transfer agreement;
5. Documents describing the list, value, etc. of the assets of the transferor prepaid installment business operator (limited to assets related to prepaid installment contracts).
[This Article Newly Inserted by Presidential Decree No. 26932, Jan. 22, 2016]
 Article 15 (Provision of Information Prior to Conclusion of Contract and Items, etc. to be Described in Contracts)
(1) Pursuant to Article 23 (1) 8 of the Act, a prepaid installment business operator or a solicitor shall explain the following matters to consumers:
1. The fact that a contract specified in any subparagraph of Article 27 (1) of the Act (hereinafter referred to as "consumer damage indemnification insurance contract, etc.") has been concluded;
2. The contract term of the consumer damage indemnification insurance contract, etc.;
3. Indemnities for consumer damage under Article 27 (4) of the Act;
4. The person liable to indemnify under Article 27 (4) of the Act (hereinafter referred to as the "person liable to indemnify");
5. Grounds for the payment of indemnities for consumer damage under Article 27 (4) of the Act.
(2) "Matters specified by Presidential Decree" in Article 23 (1) 11 of the Act means the following matters:
1. The details and amount of additional charges, if there are charges that a consumer shall pay in addition to the price for goods, etc.;
2. The details of restrictions on terms and conditions of the supply of goods, etc. if there are restrictions on the date and time of supply, the area eligible for supply, the quantity to be supplied, etc.;
3. The price of goods, etc., if there are goods, etc. that a prepaid installment business operator shall supply to consumers before supply of the goods, etc. which are the main subject matter of a prepaid installment contract.
(3) "Matters specified by Presidential Decree" in Article 23 (5) of the Act means the following matters:
1. The company name, address, or telephone number of the prepaid installment business operator;
2. The person liable to indemnify;
3. Standard terms and conditions of prepaid installment transactions.
(4) "Means specified by Presidential Decree" in Article 23 (5) of the Act means telephone, facsimile, electronic mail, mobile text messages, or any similar means.
[This Article Wholly Amended by Presidential Decree No. 26932, Jan. 22, 2016]
 Article 16 (Consumer Damage Indemnification Insurance Contract, etc.)
(1) A consumer damage indemnification insurance contract, etc. shall meet the following requirements: <Amended by Presidential Decree No. 22637, Jan. 24, 2011; Presidential Decree No. 26932, Jan. 22, 2016>
1. If any cause for payment as prescribed in Article 27 (4) of the Act arises, the contract shall have terms and conditions to indemnify consumers;
2. The insured or beneficiary shall be a purchaser of goods, etc. sold by the person who has concluded the consumer damage indemnification insurance contract, etc., and the purchaser shall be eligible to receive indemnification;
3. The contract shall ensure that consumers can promptly and easily receive indemnification and, if indemnification is delayed, damages for delay shall be paid to consumers;
4. No restriction on expression of consumers’ intentions shall be made without good cause, and consumers shall not bear any excessive burden of proof;
5. The scope of indemnification, the liability of the person liable to indemnify, or the liability of the seller of goods, etc. shall not be subject to any limitation, without good cause;
6. The contract shall not have terms and conditions likely to incur on consumers any risk or damage that is hard to be expected, or those unjustifiably detrimental to consumers;
7. An insurance contract or debt guarantee contract shall be concluded with an insurance company under subparagraph 6 of Article 2 of the Insurance Business Act or a bank under Article 2 (1) 2 of the Banking Act;
8. The transaction period under a consumer damage indemnification insurance contract, etc. concluded by a prepaid installment business operator shall not be less than one year, and he/she shall not give any disadvantage to consumers without good cause by setting forth conditions for rescission of the contract;
9. A person liable to indemnify shall take measures to ensure that consumers readily check, by visit, by telephone, or on the Internet, the terms and conditions of the consumer damage indemnification insurance contract, etc. regarding the consumers and the amount of indemnifications reserved accordingly.
(2) "Institution prescribed by Presidential Decree" in Article 27 (1) 3 of the Act means any of the following:
1. A financial company under Article 2 (1) 2 or Article 5 of the Banking Act;
2. A postal service agency under the Postal Savings and Insurance Act;
3. An insurance company under the Insurance Business Act.
(3) The amount to be reserved by a prepaid installment business operator pursuant to a consumer damage indemnification insurance contract, etc. under Article 27 (2) of the Act shall be calculated by the following formula. In such cases, where the prepaid installment business operator does not actually deliver goods, etc., such goods, etc. shall not be deemed to have been provided:
Amount to be reserved = (The amount received in advance by the prepaid installment business operator from a consumer as the price for goods, etc. related to a prepaid installment contract the value of goods, etc. provided to the consumer by the prepaid installment business operator) × 50/100.
(4) "Cases determined by Presidential Decree" in Article 27 (3) of the Act means any of the following:
1. Transfer of the status as a party to a prepaid installment contract to another prepaid installment business operator;
2. Transfer of business.
(5) "Cases prescribed by Presidential Decree" in Article 27 (4) 4 of the Act means any of the following:
1. Where a prepaid installment business operator is declared bankrupt under the Debtor Rehabilitation and Bankruptcy Act;
2. Where a decision for rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act is rendered against a prepaid installment business operator.
(6) Necessary matters concerning the detailed standards for a consumer damage indemnification insurance contract, etc. according to the characteristics of goods, etc. and transactions, terms of and procedures for indemnification, and the use of mark of consumer damage indemnification insurance contract, etc., other than those provided for in paragraphs (1) and (3), shall be prescribed by Ordinance of the Prime Minister.
 Article 17 (Contributions)
"Amount determined by Presidential Decree" in the main sentence of Article 28 (4) of the Act means 20 billion won.
 Article 18 (Authorization, etc. of Mutual Aid Association)
(1) In order to establish a mutual aid association under Article 28 (1) of the Act, at least ten promoters shall prepare its articles of association and file an application for authorization with the Fair Trade Commission following a resolution passed at the inaugural general meeting.
(2) Where the Fair Trade Commission has authorized the establishment of the mutual aid association, it shall publicize such authorization.
 Article 19 (Operation and Supervision of Mutual Aid Association)
(1) The mutual aid association shall budget its gross revenue and expenditure for each business year and submit such budget to the Fair Trade Commission by not later than one month prior to the commencement of each business year.
(2) The mutual aid association shall complete settlement of accounts within two months from the end of each business year and submit the statement of accounts to the Fair Trade Commission, along with a balance sheet and an income statement.
(3) The mutual aid association shall keep each balance sheet and each income statement submitted to the Fair Trade Commission pursuant to paragraph (2) at its principal office and branch offices and shall disclose the balance sheet.
 Article 20 (Items to be Entered in Articles of Association of Mutual Aid Association)
"Matters prescribed by Presidential Decree" in Article 30 (1) 6 of the Act means each of the following:
1. Purpose;
2. Name;
3. Place of business;
4. Value of each equity unit, methods of payment thereof, and calculation of equity units;
5. Matters concerning assets and accounting;
6. Matters concerning composition and operation of general meetings;
7. Matters concerning composition of the executive recommendation committee, grounds for disqualification of committee members, and operation of the committee;
8. Matters concerning employees;
9. Matters concerning financing;
10. Matters concerning business affairs and execution thereof;
11. Matters concerning amendment of the articles of association;
12. Matters concerning dissolution and the handling of remaining assets;
13. Matters concerning methods of disclosure.
 Article 20-2 (Notification Methods for Period of Temporary Closure of Business, etc.)
"Means prescribed by Presidential Decree" in Article 32 (2) of the Act means telephone, facsimile, electronic mail, mobile text messages, or any similar means.
[This Article Newly Inserted by Presidential Decree No. 26932, Jan. 22, 2016]
 Article 21 (Perusal of Transaction Records, etc. of Prepaid Installment Business Operators)
A prepaid installment business operator shall take measures necessary to ensure that consumers readily check the transaction records of goods, etc. by visit, by telephone, or on the Internet under Article 33 of the Act and, if consumers request the perusal by mail, etc., shall forward relevant materials within three business days thereafter.
 Article 22 (Cases where Use of Information on Consumers is Allowed)
(1) "Cases determined by Presidential Decree" in subparagraph 10 (a) of Article 34 of the Act means any of the following cases: <Amended by Presidential Decree No. 26932, Jan. 22, 2016>
1. Where information on consumers is provided to persons who deliver or transmit goods, etc. for business purposes, in order to fulfill contracts with the consumers;
2. Where information on consumers is provided to persons engaged in the business of installing goods, etc. and providing follow-up service and other agreed services, in order to fulfill contracts with the consumers;
3. Where information on consumers is provided to persons liable to indemnify who have concluded a consumer damage indemnification insurance contract, etc.
(2) "Cases determined by Presidential Decree" in subparagraph 10 (c) of Article 34 of the Act means any of the following cases: <Amended by Presidential Decree No. 26932, Jan. 22, 2016>
1. Where information on consumers is provided to any of the following persons, in order to confirm the identities, actual names, or actual intents of the consumers:
(a) A common telecommunications business operator under Article 5 (3) 1 of the Telecommunications Business Act;
(b) A credit information company under subparagraph 5 of Article 2 of the Credit Information Use and Protection Act;
(c) A settlement business operator directly related to the payment made in connection with the relevant transaction;
(d) A person who is engaged in the business of verifying a person’s actual name for the prevention of illegal use of private information after obtaining authorization or a license in accordance with or as provided for in the Acts and subordinate statutes;
2. Where information on consumers is used for confirming the consent of a legal representative, in the case of a transaction with a minor.
 Article 23 (Composition, etc. of Investigative Team)
(1) An investigative team under Article 35 (6) of the Act (hereafter referred to as "investigative team" in this paragraph) shall be comprised of a team leader and team members, and a public official of the Fair Trade Commission shall hold office as the team leader while public officials of the Fair Trade Commission and employees of the Korea Consumer Agency designated by its President as team members.
(2) Where it is necessary to form an investigative team, the Fair Trade Commission shall first request the President of the Korea Consumer Agency to designate its team members with a document stating the period of investigation, items to be investigated, number of persons required for the investigation, etc.
(3) Investigative activities by the investigative team shall be conducted under the direction and supervision of the team leader.
 Article 24 (Disclosure of Information, etc. on Illegal Acts, etc.)
(1) Where the Fair Trade Commission intends to disclose information on illegal acts under Article 36 of the Act, it shall notify the relevant prepaid installment business operator of the purpose, details, period, methods, etc. of the disclosure of information by not later than 15 days prior thereto.
(2) A prepaid installment business operator who has received notice under paragraph (1) may, if information to be disclosed is factually incorrect, request the Fair Trade Commission to rectify or not to disclose such incorrect information. In such cases, the Fair Trade Commission may change information to be disclosed or not disclose the relevant information, if it deems that the request filed by the prepaid installment business operator is justifiable.
(3) Necessary matters concerning the detailed methods, procedures, etc. of disclosure of information on illegal acts of a prepaid installment business operator, other than those provided for in paragraphs (1) and (2), shall be determined and publicized by the Fair Trade Commission.
 Article 25 (Duty to Report)
Where a Mayor/Do Governor or the head of a Si/Gun/Gu (referring to an autonomous Gu) issues a corrective recommendation under Article 37 (1) of the Act, he/she shall report to the Fair Trade Commission without delay.
 Article 26 (Publication of Fact of Being Subject to Corrective Action)
Where the Fair Trade Commission orders a prepaid installment business operator to publicize the fact that he/she is subject to corrective action under Article 39 (2) 3 of the Act, it shall determine the contents, number, etc. of such publication taking into account each of the following matters:
1. Details and severity of the violation;
2. Duration and frequency of the violation;
3. Scope and degree of damage suffered by consumers due to the violation.
 Article 27 (Standards for Suspension of Business)
The standards for suspension of business under Article 40 (1) of the Act shall be as set out in attached Table 2.
 Article 28 (Consumer Damage Dispute Mediation Agency)
"Consumer damage dispute mediation agency determined by Presidential Decree, such as an agency or organization that performs the duties related to consumer protection with respect to prepaid installment transactions" in the former part of Article 41 (1) of the Act means any of the following agencies:
1. The Korea Consumer Agency established under Article 33 of the Framework Act on Consumers;
2. An organ to provide remedies for consumer damage, established by a Mayor/Do Governor under Article 16 of the Framework Act on Consumers and Article 7 of the Enforcement Decree of the same Act;
3. Other dispute settlement body established and operated under consumer-related Acts and subordinate statutes.
 Article 29 (Procedures, etc. for Not Taking Corrective Action When Accepting and Acting on Mediatory Suggestion)
(1) A party to dispute mediation under Article 41 of the Act shall submit to the Fair Trade Commission a document verifying that he/she has acted on the recommendatory or mediatory suggestion of a consumer damage dispute mediation agency within ten days from the date of acting on the suggestion and may request the Fair Trade Commission to confirm that he/she will not take corrective action under Article 39 of the Act.
(2) When the Fair Trade Commission receives a request under paragraph (1), it shall notify the business operator of those that are not subject to corrective action.
 Article 30 (Calculation of Turnover Related to Offenses)
(1) "Turnover related to an offense prescribed by Presidential Decree" in the former part of Article 42 (1) of the Act means an amount corresponding to 30/100 of the price of goods, etc. paid by a consumer in connection with a prepaid installment contract from the commencement to the end of such offense (where the relevant offense does not end by the date of deliberation by the Fair Trade Commission ordering a disposition of imposition of a penalty surcharge, the date of deliberation shall be deemed the closing day of such offense).
(2) Matters necessary for the calculation of turnover related to an offense, other than those provided for in paragraph (1), shall be determined by the Fair Trade Commission.
 Article 31 (Standards for Imposition of Penalty Surcharges)
(1) The standards for imposition of penalty surcharges under Article 42 (1) of the Act shall be as set out in attached Table 3.
(2) The detailed standards for imposition of penalty surcharges, other than those provided for in this Decree, shall be determined by the Fair Trade Commission.
 Article 32 (Registration of Trade Association)
(1) A trade association seeking to file for registration under Article 45 (1) of the Act shall submit to the Fair Trade Commission a written application stating each of the following:
1. Purpose;
2. Name;
3. Addresses of its principal office and branch offices, and its website address;
4. Name, resident registration number, address, and e-mail address of the representative;
5. Date of establishment;
6. Number of members (including the number of branch offices);
7. Details of business.
(2) The articles of association and materials on each of the following shall be attached to a written application under paragraph (1):
1. Current status of personnel and financial conditions, and financing measures;
2. List of major equipment and their functions.
(3) A trade association registered under Article 45 (1) of the Act shall notify the Fair Trade Commission of any change in the matters referred to in paragraph (1) 1 through 4, 6 and 7 or any subparagraph of paragraph (2) within 20 days from the date on which such change occurs.
 Article 32-2 (Management of Personally Identifiable Information)
The Mayor/Do Governor (including a person to whom the relevant authority has been delegated or entrusted if such authority is delegated or entrusted) may manage data including resident registration numbers provided for in Article 19 (1) of the Enforcement Decree of the Personal Information Protection Act, if it is inevitable to perform the following business affairs:
1. Registration of prepaid installment business pursuant to Article 18 (1) of the Act;
2. Report on revisions to the registered matters of prepaid installment business pursuant to Article 18 (3) of the Act;
3. Report on succession to the status of prepaid installment business operators pursuant to Article 22 (3) of the Act.
[This Article Newly Inserted by Act No. 27987, Apr. 11, 2017]
 Article 33 (Standards for Imposition of Administrative Fines)
The standards for imposition of an administrative fine under Article 53 (1) through (5) of the Act shall be as set out in attached Table 4.
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on September 18, 2010.
Article 2 (Transitional Measures due to Citation of other Act)
(1) "Bank under Article 2 (1) 2 of the Banking Act" in the amended provisions of Article 16 (1) 7 shall be deemed "financial institution under Article 2 (1) 2 of the Banking Act" until November 17, 2010.
(2) "Common telecommunications business operator under Article 5 (3) 1 of the Telecommunications Business Act" in the amended provisions of Article 22 (2) 1 (a) shall be deemed "common telecommunications business operator under Article 4 (3) 1 of the Telecommunications Business Act" until September 23, 2010.
Article 3 (Relationship with other Acts)
Where provisions of the previous Enforcement Decree of the Installment Transactions Act are cited in other Acts or subordinate statutes as at the time this Decree enters into force, the corresponding provisons of this Decree shall be deemed to have been cited in place of the previous provisions if provisions corresponding thereto exist in this Decree.
ADDENDA <Presidential Decree No. 22637, Jan. 24, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA <Presidential Decree No. 24436, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 26036, Jan. 6, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26932, Jan. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 25, 2016: Provided, That the amended proviso to Article 14 (1) 4 shall enter into force on March 2, 2016.
Article 2 (Applicability to Interest Rate Applicable to Calculation of Damages for Delay)
The amended provisions of Article 7 shall apply to cases where damages for delay shall be calculated for the delay in the downpayment or installments that a prepaid installment business operator shall refund to a consumer for goods, etc. after this Decree shall enter into force.
Article 3 (Applicability to Submission and Public Disclosure of Accounting Audit Reports)
The amended provisions of Article 13-2 shall apply to accounting audit reports for the fiscal years that begin after July 24, 2015.
ADDENDA <Presidential Decree No. 27971, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDUM <Presidential Decree No. 27987, Apr. 11, 2017>
This Decree shall enter into force on the date of its promulgation.