Reporting as mail order distributors
Initial notification for commencement of business- A founder of an online shopping mall shall specify the following matters in a report for mail order distributors and submit such report to the Metropolitan Autonomous City Mayor, Governor of a Special Self-Governing Province, or the head of a Si/Gun/Gu having jurisdiction over its registered principal office (where its principal office is located overseas, submission shall be made to the Fair Trade Commission) as a means of reporting his/her business as a mail order distributor (Article 12(1) of the Act on the Consumer Protection in Electronic Commerce, etc., Article 13(1) and Article 15 of the Enforcement Decree of the Act on the Consumer Protection in Electronic Commerce, etc., and Article 8(1) of the Enforcement Regulations of the Act on the Consumer Protection in Electronic Commerce, etc.).
- Where a mail order distributor intends to operate prepaid mail order business, the above report shall be accompanied by the following documents (Article 13(1) of the Enforcement Decree of the Act on the Consumer Protection in Electronic Commerce, etc., and Article 8(2) of the Enforcement Regulations of the Act on the Consumer Protection in Electronic Commerce, etc.).
· A confirmation on the use of secure purchase service or the deposit of a sum to be paid to verify the use of an escrow system or the conclusion of a contract, etc., of consumer damage compensation insurance
· Materials that provide explanation for a transaction of paying for goods, etc., by credit card, a transaction of buying goods, etc., which are sent through information and communications networks or the delivery of which is not confirmable by a third party, a transaction of buying goods, etc., supplied in installments for a certain period of time, where the safety of purchase is firmly secured by other Acts, or a transaction with the national institution and local governments, public institutions, and corporations and schools established to serve public interest under a special act.
- Sanctions for violations
· In the event where a person fails to file a report or files a false report as a mail order distributor, he/she shall be punished by a fine of up to KRW 30 million. Furthermore, if a person fails to file a report as a main order distributor, the Fair Trade Commission may order him/her to take corrective measures, and if he/she fails to file the report despite an order to take corrective measures, the Commission may order to fully or partially suspend the business or impose upon the relevant business operator penalty surcharges (Subparagraph 1 of Article 32(1), Article 32(4), Article 34(1), and Subparagraph 1 of Article 42 of the Act on the Consumer Protection in Electronic Commerce, etc.).
Notification of modification- A person who intends to give notification of modification shall submit the following documents to the Metropolitan Autonomous City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (where its principal office is located overseas, submission shall be made to the Fair Trade Commission) within 15 days from the date such changes were made, as a means of reporting his/her business as a mail order distributor (Article 12(2) of the Act on the Consumer Protection in Electronic Commerce, etc., Article 16(1) of the Enforcement Decree of the Act on the Consumer Protection in Electronic Commerce, etc., and Article 9 of the Enforcement Regulations of the Act on the Consumer Protection in Electronic Commerce, etc.).
· Change of information on the mail order distributor (form)
· Documents that act as proof of such changes
· A certificate of the mail order business (applicable only where the matters in the report has been changed)
- Sanctions for violations
· In the event where a person fails to file a report for changes in his/her mail order business, he/she shall be punished with a fine of up to KRW 5 million. Furthermore, if a person fails to file a report on changes in his/her a mail order business, the Fair Trade Commission may order him/her to take corrective measures or impose penalty surcharges on him/her. If he/she fails to file the report despite an order to take corrective measures, the Commission may order a full or partial suspension of business (Subparagraph 1 of Article 32(1) and Article 32(4), Article 34(1), and Subparagraph 3 of Article 45(4) of the Act on the Consumer Protection in Electronic Commerce, etc.).