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| Article 38 (Termination of Illegal Contract) |
| (1) | "Financial products prescribed by Presidential Decree" in the former part of Article 47 (1) of the Act means financial products determined and publicly notified by the Financial Services Commission from among financial products in which continuous transactions occur between financial consumers and financial product direct distributors or financial product advisors. |
| (2) | In the former part of Article 47 (1) of the Act, "period prescribed by Presidential Decree" refers to a period within one year from the date the financial consumer becomes aware of the violation of contract conclusion. In such cases, the relevant period shall be within five years from the date of contract conclusion. |
| (3) | Where a financial consumer intends to demand the termination of a contract pursuant to the former part of Article 47 (1) of the Act, he or she shall submit a written demand for termination determined and publicly notified by the Financial Services Commission to the financial product distributor or advisor, along with documents proving the violation. In such cases, when a request for termination of liability insurance under the Guarantee of Motor Vehicle Accident Compensation Act is made, the person shall be insured with another liability insurance of the same kind. |
| (4) | The scope of good causes under Article 47 (2) of the Act shall be as follows: |
| 1. | Where he or she fails to present grounds for violations or presents false grounds; |
| 2. | Where no violation has been committed at the time of the conclusion of the contract, but the financial consumer alleges the violation due to changes in circumstances after the conclusion of the contract; |
| 3. | Where he or she corrects any violation with the consent of the financial consumer; |
| 4. | Other matters determined and publicly notified by the Financial Services Commission, which are corresponding to subparagraphs 1 through 3. |
| (5) | Except as provided in paragraph (1) through (4), details of matters necessary for the methods and procedure for the exercise of the right to demand the termination of a contract shall be determined and publicly notified by the Financial Services Commission. |