| (1) | Where a credit card holder or a debit card holder reports to a credit card company on loss or theft of the card, from that time, the credit card company shall be liable to the credit card holder or the debit card holder for use of the credit card or the debit card. |
| (2) | A credit card company shall assume the responsibility for using a credit card which has occurred prior to the notification under the provisions of paragraph (1), within the limit of a period prescribed by Presidential Decree. |
| (3) | Notwithstanding paragraph (2), when a credit card company has concluded a contract to the effect that it may hold a credit card holder responsible for the whole or part of loss or theft of the credit card, it may have the relevant credit card holder assume the responsibility pursuant to the details of such a contract: Provided, That the same shall not apply where the credit card holder has no intention nor negligence, such as a divulgence of secret number due to an irresistible violence or a danger to the life or body of himself/herself or relatives. |
| (4) | Where a credit card company receives a report under paragraph (1), it shall forthwith notify the reporting person of information on the recipient of the report, receipt number or other matters certifying such receipt. |
| (5) | A credit card company shall be liable to a credit card holder, etc. for the use of credit cards, etc. falling under each of the following subparagraphs: |
| 1. | Use of forged or altered credit cards, etc.; |
| 2. | Use of credit cards, etc. by utilizing the information of such credit cards, which have been obtained through illegal means including hacking, computer error, and leakage of inside information; |
| 3. | Use of credit cards, etc. issued by stealing the names of other persons (excluding where an intention or gross negligence of credit card holders, etc. is involved). |
| (6) | Notwithstanding paragraph (5), where a credit card company enters into an agreement with a holder of credit card, etc. to the effect that if the said company provides evidences of the existence of intent or gross negligence on the part of such credit card holder, etc. with regard to the use of credit card, etc. under paragraph (5) 1 and 2, the whole or part of such liabilities may be attributed to the holder of credit card, etc., the said company may make the said holder to be liable for the details of such contract. |
| (7) | A contract referred to in paragraphs (3) and (6) shall be effective only where it is concluded in writing or an electronic document, and gross negligence on the part of the credit card holder, etc. shall be restricted to what are specifically indicated in the agreement. <Amended on Mar. 21, 2023> |
| (8) | A credit card company shall take measures including purchase of insurances or subscription to mutual associations or maintenance of reserve funds, etc. so as to bear liabilities under paragraphs (1), (2), (5) and Article 17. |
| (9) | The scope of intent or gross negligence of the credit card holder, etc. under paragraph (5) 3, and paragraphs (6) and (7) shall be prescribed by Presidential Decree. |
| (10) | Where a credit card holder raises an objection in writing, by phone, in an electronic document, or by other methods against the amount of using his/her credit card, a credit card company may not receive the relevant amount from such credit card holder not later than the time when any investigation thereon is completed. <Amended on Mar. 21, 2023> |
[This Article Wholly Amended on Feb. 6, 2009]