| (1) | In executing a contract for a financial product, conducting other relevant transactions, or providing advisory service, financial product distributors and advisors shall ascertain whether a counterparty financial consumer is an ordinary financial consumer or a professional financial consumer. |
| (2) | When a financial product distributor or advisor solicits an ordinary financial consumer to conclude a contract for a financial product referred to in any of the following subparagraphs (including cases where a financial product advisor provides advisory service; hereafter the same shall apply in this Article), the financial product distributor or advisor shall obtain the information required under the relevant subparagraph through interviews, inquiries, etc. by requesting the ordinary financial consumer to affix his or her signature (including the digital signature defined in subparagraph 2 of Article 2 of the Digital Signature Act; hereinafter the same shall apply) or to print his or her name and affix his or her seal, by tape-recording oral statements of the ordinary financial consumer, or by obtaining confirmation from the ordinary financial consumer by other methods prescribed by Presidential Decree, shall maintain and manage such information appropriately, and shall provide the confirmed information to the ordinary financial consumer, without delay: |
| (a) | The age of the ordinary financial consumer; |
| (b) | The status of property (referring to information about assets and income, including debts; hereinafter the same shall apply); |
| (c) | The purpose of conclusion of a contract for the indemnity product; |
| 2. | An investment product (excluding the investment products specified by Presidential Decree, such as securities subject to the crowdfunding brokerage under Article 9 (27) of the Financial Investment Services and Capital Markets Act; hereafter the same shall apply in this Article) or a deposit product specified by Presidential Decree as a financial product with a rate of return variable according to the performance of investment: |
| (a) | The purpose of acquisition or disposal of the relevant financial product by the ordinary financial consumer; |
| (b) | The status of property; |
| (c) | Experiences in acquisition or disposal; |
| (a) | The status of property of the ordinary financial consumer; |
| (b) | Credit and the repayment plan; |
| 4. | Other information specified by Presidential Decree as necessary for soliciting ordinary financial consumers to conclude a contract for financial products suitable to ordinary financial consumers. |
| (3) | No financial product distributor or advisor shall solicit an ordinary financial consumer to conclude a contract considered unsuitable to the ordinary financial consumer in light of the information referred to in the relevant subparagraph of paragraph (2). The criteria for the determination on suitability in such cases shall be prescribed by Presidential Decree in accordance with the relevant subparagraph of paragraph (2). |
| (4) | Further details of the information that financial product distributors and advisors shall obtain for each type of financial product under paragraph (2) shall be prescribed by Presidential Decree. |
| (5) | Paragraphs (1) through (3) shall not apply where a financial product distributor or advisor sells collective investment securities of a hedge fund under Article 249-2 of the Financial Investment Services and Capital Markets Act: Provided, That the same shall not apply where a person specified by Presidential Decree, such as an ordinary financial consumer, among qualified investors under Article 249-2 of that Act, requests in accordance with Presidential Decree. |
| (6) | Financial product distributors and advisors under paragraph (5) shall inform the persons specified by Presidential Decree, in advance, in accordance with Presidential Decree, that they may separately request the application of paragraphs (1) through (3) under the proviso of paragraph (5). |
[Enforcement Date: Sep. 25, 2021] Provisions relevant to financial product advisors in Article 17