ENFORCEMENT DECREE OF THE ACT ON THE REGULATION OF TERMS AND CONDITIONS
Presidential Decree No. 12197, Jul. 1, 1987
Amended by Presidential Decree No. 13843, Feb. 20, 1993
Presidential Decree No. 15750, Apr. 1, 1998
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 20364, Nov. 5, 2007
Presidential Decree No. 22220, jun. 28, 2010
Presidential Decree No. 22745, Mar. 29, 2011
Presidential Decree No. 24033, Aug. 13, 2012
Presidential Decree No. 29295, Nov. 20, 2018
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 2 (Preservation of Terms and Conditions) |
Even in cases of terms and conditions for each category of business provided for in the subparagraphs of Article 3 (2) of the Act on the Regulations of Terms and Conditions (hereinafter referred to as the "Act"), a business person shall preserve the relevant terms and conditions of a contract at the business place to make it accessible by the customers. [This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 3 (Limitations on Application) |
| 1. | International transport business; |
| 2. | International finance and insurance business; |
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 4 (Form of Corrective Measures) |
Any corrective measures or recommendations taken or made under Article 17-2 of the Act shall be delivered in writing clearly indicating the details thereof. [This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 5 (Requests and Recommendations for Corrective Measures) |
| (1) | Any request or recommendation to take corrective measures pursuant to Article 18 of the Act shall be made in writing (including electronic documents) and clearly indicate the details thereof. |
| (2) | The Financial Supervisory Service established under the Act on the Establishment, etc. of the Financial Services Commission or an administrative agency which has received a request or recommendation to take corrective measures pursuant to paragraph (1) shall notify the Fair Trade Commission of the result of settlement in writing (including by electronic documents) within 60 days after receipt of such request or recommendation. |
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 6 (Filing, etc. of Written Applications for Examination) |
| (1) | Any person who intends to apply for an examination on the illegality of the terms and conditions pursuant to Article 19 (1) of the Act shall state the following matters in a written application for examination, and attach thereto a copy of the terms and conditions subject to the examination: |
| 1. | Name and address of the applicant for examination; |
| 2. | Name or trade name and address of the business person; |
| 3. | Purport of and grounds for the application for examination. |
| (2) | Upon receipt of an application for examination pursuant to Article 19 (1) of the Act, the Fair Trade Commission shall notify the applicant for examination of the result of examination in writing within 60 days after the receipt of such application, except in extenuating circumstances. |
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 7 (Notification, etc. of Examination Result of Standard Terms and Conditions) |
| (1) | The Fair Trade Commission, upon receipt of an application for examination of standard terms and conditions pursuant to Article 19-3 (1) of the Act, shall notify the applicant of the result of its examination within 60 days from the receipt of such application. |
| (2) | If deemed necessary, the Fair Trade Commission may request business person or trade organizations which use standard terms and conditions to submit the state of the use of the relevant terms and conditions. |
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8 (Hearing, etc. of Opinions) |
| (1) | When the Fair Trade Commission notifies, in accordance with Article 22 (1) of the Act, the business person or interested persons of the fact that the relevant terms and conditions have become the subject-matter of examination, such notification shall be made in writing, specifying the date, time and place of the hearing of the Fair Trade Commission. |
| (2) | The Fair Trade Commission may reimburse the necessary expenses within budgetary limits to the parties or interested persons who attend a hearing of the Fair Trade Commission pursuant to Article 22 (2) of the Act. |
| (3) | A request for an opinion made to an administrative agency pursuant to Article 22 (3) of the Act shall be made in writing and clearly indicate the contents and the deadline. |
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-2 (Subject-Matters of Dispute Mediation) |
The phrase "terms and conditions prescribed by Presidential Decree" in Article 24 (1) of the Act means the terms and conditions of any clauses of which have a legal issue in common with the terms and conditions which are in violation of Article 17 of the Act, regardless of the principal who has prepared such terms and conditions, or the title or manner of expression of such terms and conditions. [This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-3 (Committee Meetings) |
| (1) | The Chairperson of the Mediation Committee to Resolve Disputes on Terms and Condition established under Article 24 (1) of the Act (hereinafter referred to as the "Committee") shall, where he/she intends to call a meeting under Article 25 (1) of the Act, inform the related members of the date and time, venue and agenda of the meeting in writing seven days before the meeting commences: Provided, That this shall not apply in cases of emergency. |
| (2) | The meetings of the Committee shall not be open to the public: Provided, That where the Chairperson of the Committee deems it necessary, the customer (excluding the customer defined in subparagraph 1 of Article 2 of the Framework Act on Consumers; hereinafter the same shall apply) and business person who are parties to a dispute falling under Article 25 (5) of the Act (hereinafter referred to as "parties to a dispute") or other interested persons may be allowed to sit in on the meeting. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-4 (Application, etc. for Dispute Mediation) |
| (1) | The phrase "terms and conditions prescribed by Presidential Decree" in the main sentence other than the subparagraphs of Article 27 (1) of the Act means the terms and conditions, the contents of which have a legal issue in common with the terms and conditions in violation of Article 17 of the Act, regardless of the principal who has prepared such terms and conditions, or the title or expressions of such terms and conditions. |
| (2) | “Matters prescribed by Presidential Decree" in the main sentence other than the subparagraphs of Article 27 (1) of the Act means the following matters: |
| 1. | Names and addresses of the applicant and respondent (referring to the name of the corporation and location of the main office, and the name and address of its representative, if any party to a dispute is a corporation); |
| 2. | If any proxy is nominated, his/her name and address; |
| 3. | Clauses of the terms and conditions against which application for dispute mediation is filed; |
| 4. | The purport and grounds for application for dispute mediation, including the following matters: |
| (a) | Justification for application for dispute mediation; |
| (b) | Reasons why the clauses of the terms and conditions which are the subject-matter of dispute mediation are unfair; |
| (c) | Details of loss incurred due to any clauses of the terms and conditions which are the subject-matter of dispute mediation. |
| (3) | The following documents shall be attached to the document in which the matters stipulated in paragraph (2) are stated: |
| 1. | Grounds for the application for dispute mediation and the documents evidencing such fact; |
| 2. | A letter of delegation, where a proxy files the application; |
| 3. | Other evidentiary documents or materials necessary for dispute mediation. |
| 1. | Cases for which an agreement between the customer and business person concerning the settlement of dispute or compensation for loss is reached; |
| 2. | Cases for which mediation is in progress or applied under the Arbitration Act. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-5 (Appointment of Representatives for Application for Dispute Mediation) |
| (1) | Where several customers jointly apply for dispute mediation, not more than three representatives may be appointed from among the applicants. |
| (2) | Where applicants fail to appoint representatives pursuant to paragraph (1), the Chairperson of the Committee may recommend the applicants to appoint representatives. |
| (3) | The representatives may conduct all acts concerning the mediation of the relevant case for other applicants: Provided, That they shall obtain written consent of other applicants with respect to the withdrawal, acceptance or rejection of a proposal of mediation. |
| (4) | When representatives are appointed, other applicants may conduct any act concerning the mediation of the relevant case only through the representatives. |
| (5) | Applicants who have appointed representatives may, if deemed necessary, dismiss or replace them. In such cases, the applicants shall notify the Chairperson of the Committee of such fact without delay. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-6 (Supplementation, etc. of Application for Dispute Mediation) |
| (1) | Where it is deemed necessary to supplement an application for dispute mediation filed pursuant to the main sentence other than the subparagraphs of Article 27 (1) of the Act, the Chairperson of the Committee shall demand such supplementation, fixing a reasonable period. |
| (2) | The period required for the supplementation under paragraph (1) shall be excluded from the calculation of the period provided for in Article 27-2 (4) 2 of the Act. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-7 (Attendance, etc. of Parties to Dispute) |
| (1) | Where the Committee intends to request disputant parties to attend a meeting pursuant to Article 27-2 (2) of the Act, it shall notify them thereof at least seven days prior to the date set for attendance, fixing a time and place: Provided, That another period may be set in cases of urgency or if agreed by the parties to dispute. |
| (2) | Any party to a dispute who has received notice given under paragraph (1) may submit his/her opinion in advance, if he/she is unable to attend at the meeting of the Committee due to any extenuating circumstances. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-8 (Notification of Filing of Lawsuit, etc.) |
Where any party to a dispute files a lawsuit to the court relating to the relevant case after filing an application for dispute mediation or applies for arbitration under the Arbitration Act or mediation of a dispute mediation organization established under another Act, he/she shall notify the Committee thereof without delay. [This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 8-9 (Reporting Termination, etc. of Dispute Mediation) |
| (1) | Where the Committee rejects an application for medication pursuant to Article 27-2 (3) of the Act or terminates mediation pursuant to Article 27-2 (4) of the Act, it shall prepare a report on termination of dispute mediation in which the following matters are included: |
| 1. | Current state of parties to a dispute; |
| 4. | Reasons for the rejection of the application for dispute or the termination of mediation process (referring to the result of mediation, where mediation is completed pursuant to Article 27-2 (4) 1 of the Act). |
| (2) | The Committee shall file a report with the Fair Trade Commission without delay, appending a copy of a report on termination of dispute mediation prepared under paragraph (1). |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 9 (Subject-Matter of Collective Dispute Mediation) |
The phrase "case prescribed by Presidential Decree" in Article 28-2 (1) of the Act means a case which meets each of the following requirements: | 2. | That the number of customers excluding the following customers, from among those to whom loss has incurred, shall be at least 20 persons: |
| (a) | Customers who have agreed with the business person on the settlement of dispute or the compensation for loss; |
| (b) | Customers whose cases are pending arbitration in accordance with the Arbitration Act or who have applied for arbitration; |
| (c) | Customers who have filed lawsuits with the court. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 9-2 (Method of Application for Collective Dispute Mediation) |
Commissioning to or applying for a mediation en bloc of dispute (hereinafter referred to as "collective dispute mediation") with the Committee pursuant to Article 28-2 (1) of the Act shall be done in writing. [This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 9-3 (Commencement of Process for Collective Dispute Mediation) |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 9-4 (Application for Participation in Process of Collective Dispute Mediation) |
| (1) | If a customer not a party to a collective dispute mediation intends to additionally take part in as a party thereto pursuant to Article 28-2 (3) of the Act, he/she shall apply therefor in writing during the period of announcement prescribed in Article 9-3 (2). |
| (2) | Upon receipt of an application for permission to participate as a party to a collective dispute mediation pursuant to paragraph (1), the Committee shall inform the applicant as to whether his/her participation is approved, within 10 days after the period of announcement. |
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 9-5 (Compensation Plans for Customers who are not Party but to whom Loss Has Incurred) |
A business person who is advised to submit a compensation plan pursuant to Article 28-2 (5) of the Act shall inform the Committee of as to whether he/she accepts such recommendation, within 15 days after the date of the receipt of such recommendation. [This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 9-6 (Persons to be Excluded from Process of Collective Dispute Mediation) |
Where some among the majority of customers who are a party to a collective dispute mediation fall under any item of subparagraph 2 of Article 9, such customers shall be excluded from the process of the collective dispute mediation. In such cases, the progress of the process shall not be affected by the foregoing. [This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 10 (Detailed Regulations on Operation of Committee) |
Necessary matters concerning the organization, operation, mediation process, etc. of the Committee other than those prescribed in this Decree shall be determined by the Chairperson of the Committee following deliberation and resolution by the Committee.
[This Article Newly Inserted by Presidential Decree No. 24033, Aug. 13, 2012]
| Articles 11 and 12 Deleted. <by Presidential Decree No. 13843, Feb. 20, 1993> |
| Article 13 (Procedures, etc. for Deliberation and Resolution by Fair Trade Commission) |
Matters other than those provided for in Article 30-2 of the Act, which are necessary for deliberations, resolutions, etc. with respect to terms and conditions shall be determined by the Fair Trade Commission. [This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 13-2 (Consultants) |
| (1) | In accordance with Article 31-2 (1) of the Act, the Fair Trade Commission may commission persons with substantial knowledge and experience in dealing with terms and conditions as consultants. |
| (2) | If requested by the Fair Trade Commission, a consultant may attend the hearings of the Fair Trade Commission to state his/her opinion or submit a written opinion (including electronic documents) with respect to the examination of terms and conditions. |
| (3) | Allowances may be paid and other necessary expenses may be reimbursed, within budgetary limits, to persons appointed as consultants. |
| (4) | Except as otherwise provided for in this Decree, necessary matters concerning consultants shall be determined by the Fair Trade Commission. |
[This Article Wholly Amended by Presidential Decree No. 24033, Aug. 13, 2012]
| Article 14 (Criteria for Imposition of Administrative Fines) |
The criteria for imposition of administrative fines prescribed in Article 34 (1) through (4) of the Act shall be as listed in the attached Table. <Amended by Presidential Decree No. 29295, Nov. 20, 2018> [This Article Wholly Amended by Presidential Decree No. 22745, Mar. 29, 2011]
ADDENDUM
This Decree shall enter into force on July 1, 1987.
ADDENDUM <Presidential Decree No. 13843, Feb. 20, 1993>
This Decree shall enter into force on March 1, 1993.
ADDENDA <Presidential Decree No. 15750, Apr. 1, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1998.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 20364, Nov. 5, 2007>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22220, Jun. 28, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 6, 2010.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22745, Mar. 29, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Administrative Fines)
| (1) | In applying the criteria for imposition of administrative fines for any offenses committed before this Decree enters into force, the former provisions shall govern, notwithstanding the amended provisions of the attached Table. |
| (2) | Imposition of an administrative fine for any offense committed before this Decree enters into force shall not be included in determining the number of offenses pursuant to the amended provisions of the attached Table. |
ADDENDUM <Presidential Decree No. 24033, Aug. 13, 2012>
This Decree shall enter into force on August 18, 2012.
ADDENDUM <Presidential Decree No. 29295, Nov. 20, 2018>
This Decree shall enter into force on December 13, 2018.