| (1) | No financial product distributor or advisor shall commit any of the following acts (hereinafter referred to as “unfair business activities”), which violates rights and interests of financial consumers, taking advantage of his or her dominant position: |
| 1. | Forcing a financial consumer to conclude a contract for a financial product contrary to the financial consumer’s intention in the context of concluding a contract for a loan product or any other financial product specified by Presidential Decree; |
| 2. | Unfairly requiring a financial consumer to offer an asset as security or a guarantee in the context of concluding a contract for a loan product or any other financial product specified by Presidential Decree; |
| 3. | Demanding or receiving any benefit by a financial product distributor or advisor or any of its executive officers and employees in connection with its business activities; |
| 4. | In cases of a loan product, any of the following acts: |
| (a) | Forcing a financial consumer to choose a particular method for the repayment of a loan for its own benefit or for a third party’s benefit; |
| (b) | Except the cases referred to in (i) through (iii) below, imposing any fee, penalty, or early repayment charge, in whatsoever name; |
| (i) | Where a loan is repaid within three years from the date of execution of the loan agreement; |
| (ii) | Where imposing an early repayment charge is allowed under any other statute or regulation; |
| (iii) | Other acts specified by Presidential Decree as unlikely to undermine the protection of financial consumers and the robust trading system; |
| (c) | Demanding a third party’s joint surety in connection with a contract for a loan product specified by Presidential Decree, such as a loan to an individual; |
| 5. | If a linked or tied product or service is involved, an act specified by Presidential Decree as an act of unfairly reducing or changing such linked or tied product or service: Provided, That the cases where, although a linked or tied product or service is inevitably reduced or changed, another linked or tied product or service, equivalent to such product or service, is provided instead or where it is inevitable to reduce or change a linked or tied product or service due to the suspension of business activities, bankruptcy, or a crisis of management of a financial product distributor or advisor, shall be excluded; |
| 6. | Any other act of violating a financial consumer’s rights and interests by a financial product distributor or advisor, taking advantage of its dominant position. |
| (2) | Specific types of, or the criteria for, unfair business activities shall be prescribed by Presidential Decree. |
[Enforcement Date: Sep. 25, 2021] Provisions relevant to financial product advisors in Article 20