Regulations on Consumer Dispute Resolution
Please check the latest version of the Regulations for actual application.
This English version Is continuously being updated as of July, 2007
October 2006
Korea Consumer Agency
Framework Act on Consumer & Enforcement Decree of the Framework Act on Consumer
Framework Act on Consumer
Article 12 (Remedy for Consumer Damages)
① The central and local governments shall take necessary measures so as to promptly and fairly handle consumer complaints and damages.
② The government may formulate the Regulations on Consumer Dispute Resolution for Consumer Damages by Product Item (hereinafter referred to as the “Regulations on Consumer Dispute Resolution”) in conformity with the general Regulations on Consumer Dispute Resolution for Consumer Damages as determined by the Presidential Decree, for the smooth settlements of B2C disputes.
③ The Regulations on Consumer Dispute Resolution as referred to in Section 2 shall be the norm for remedy in B2C disputes, unless otherwise stated.
Enforcement Decree of the Framework Act on Consumer
Article 10 (General Regulations on Consumer Dispute Resolution for Consumer Damages)
The general Regulations on Consumer Dispute Resolution for Consumer Damages (hereinafter referred to as the “General Regulations on Consumer Dispute Resolution”) as prescribed in Article 12 (2) of the Framework Act on Consumer shall be as follows.
1. In the case consumer damages occur involving defective goods and services or defaults, businesses shall provide repair, exchange, refund or compensation for such damages, or shall cancel, terminate or implement contracts according to the Regulations on Consumer Dispute Resolution as follows:
a. Businesses shall bear the expense of repairs during the warranty period. Provided, in case mishaps or damages are caused by consumers’ faults, or such unexpected circumstances as natural disasters occur, or in case goods are deformed or damaged from repairs by individuals other than manufacturers or repair shops designated by the manufacturers; it shall not apply;
b. Repairs shall be completed in time but in the case of delays due to unexpected circumstances, consumers shall be notified. In case a repaired product is not delivered to a consumer for over a month from the date of request and if it is within the warranty period, the exchange shall be made for the same or a similar type of product when the exchange for the same type is impossible. In case exchanges are provided after a lapse of the warranty period, the business shall refund the depreciated purchase price plus 10% of additional charge;
c. In case similar functional or performance breakdowns reoccur within two months from the date of repair, the following repairs shall be provided for free. If repairs are impossible, however, the previous repair cost shall be returned to the consumer;
d. Exchanges shall be made with the same type of product, but if an exchange for the same type of product is impossible, the exchange shall be made with a similar type of product. Provided, that in case an exchange cannot be made with the same type of product and the consumer does not wish to exchange it with a similar one, the repair cost shall be returned to the consumer;
e. In the case goods were purchased at a discount, exchange shall be made for the same type of product, irrespective of differences between the original and discounted prices. If an exchange for the same type of product is impossible, the exchange shall be made with a similar product: provided, that in case an exchange cannot be made with the same type of product and the consumer does not wish to exchange it with a similar one, the repair cost shall be returned to the consumer;
f. The amount of refund shall be determined based on the price of goods and services indicated on receipts. Provided, that in case disputes over the price occur, the consumer who seeks refund shall prove that the claimed amount was actually paid. If the consumer does not have a receipt that can prove the consumer’s actual payment of the claimed amount, the amount of refund shall be determined based on the commonly accepted prices in the area where the dispute has occurred.
2. In the case of consumer damages involving defective goods or services, the Regulations on Consumer Dispute Resolution shall be the same as indicated in Section 1. In case a contract is canceled or terminated due to a consumer’s fault, the business receives the defective product. And/Or if the return of the product is impossible, the consumer shall return a similar type of product or pay the commonly accepted market price of the product where the dispute has occurred.
3. The business, upon selling goods, shall provide the Seal of Quality that indicates the warranty period, the part replenishment period and compensation methods such as providing repairs, exchanges and refunds, or indicate the contents thereof on the goods. Provided, that in case circumstances are unsuitable to provide the contents stated on the Seal of Quality or to indicate the Regulations on Consumer Dispute Resolution on the Seal of Quality, the business may only indicate that compensation shall be provided for any damages in accordance with the Regulations on Consumer Dispute Resolution under the Framework Act on Consumer.
4. The warranty period and the part replenishment period shall be based on each of the following items.
a. The warranty period and the part replenishment period shall be the period indicated in the Seal of Quality by the business: provided, that in case the warranty period and the part replenishment period set by the business are shorter than the period indicated in the Regulations on Consumer Dispute Resolution under Article 12(2) of the Act, those indicated in the Regulations on Consumer Dispute Resolution shall be the actual periods of providing warranty and part replenishment;
b. In case the business fails to indicate the warranty period and the part replenishment period, the periods shall be those indicated in the Regulations on Consumer Dispute Resolution. Provided, that in case the warranty period and the part replenishment period of the product are not prescribed in the Regulations on Consumer Dispute Resolution, the periods shall be the warranty period and the part replenishment period of a similar type of product item prescribed in the Regulations on Consumer Dispute Resolution. If it cannot be dealt with thereof, the warranty period shall be one year and the part replenishment period shall be the period of durable years, which is counted from the date the production of the goods in question discontinues;
c. The warranty period for used goods shall be determined in accordance with the Regulations on Consumer Dispute Resolution;
d. The warranty period shall be counted from the purchase date of goods and services by consumers. Provided, that in case the date of agreement and delivery date are different, delivery date will be the base of calculating the warranty period. The warranty period of exchanged goods shall be counted from the date of exchange;
e. In case the date of sales is not indicated in the Seal of Quality, or the Seal of Quality or the receipt is lost or not received, or the confirmation of the purchase date is impossible, the warranty period shall be reckoned from 3 months after the date of manufacturing or customs clearance. Provided, that in case the manufacturing date or customs clearance date is not indicated on the goods or package, the business shall uphold the responsibility of proving the manufacturing date.
5. In case consumer damages occur related to goods and services, compensation shall be provided where the goods and services are sold and rendered: provided, that in the case of portable and/or transportable goods, the compensation shall be provided in the place of business.
6. Transportation cost and product test inspection costs incurred in the process of handling consumer damages caused by the business’ fault shall be born by the business.
Article 11 (Standard for Advertisement)
In order to prevent consumer damages or injuries to their bodies, lives, or properties caused by wrong or excessive consumption of goods or services, the nation is responsible for setting up the criteria for advertisement contents and methods in case they fall into any one of the following conditions.
1. In case the contents of the advertisement about the purpose, ingredient, capacity, size or origin should be limited to those authorized or approved, or in case specific contents should be informed to consumers without failure;
2. In case the use of certain terms or expressions which can bring the misunderstanding of consumers should be limited;
3. In case the advertisement media or time should be limited
Article 12 (Application of Regulations on Consumer Dispute Resolution)
1. The Regulations on Consumer Dispute Resolution shall be applied only when parties in dispute do not express any objections, and consumers seek for the compensation in accordance with Regulations on Consumer Dispute Resolution only.
2. If the criteria under other laws and statutes are more advantageous to consumers than those in the Regulations on Consumer Dispute Resolution, the former shall take precedence over the latter.
3. If the criteria on the product in question are not prescribed in the Regulations on Consumer Dispute Resolution, the criteria for similar types of products indicated in the Regulations on Consumer Dispute Resolution shall be applied.
4. In case the Regulations on Consumer Dispute Resolution include more than two compensation methods for the same damage, the method chosen by consumers shall be applied.
Table of Contents
Regulations on Consumer Dispute Resolution for Consumer Damages 9
Appendix I. Product Items in Question 11
Appendix II. Regulations on Consumer Dispute Resolution by Product Item 23
1. Matchmaking Service 23
2. Security Service 24
3. National Examination Preparation Centers 26
4. Public Service 27
5. Industrial Goods 29
6. Performing Industry 59
7. Agriculture, Fishery & Livestock Products 60
8. Cultural Goods & Others 62
9. Beauty Care 68
10. Real Estate Brokerage 69
11. Photography & Photo Developing Industry 70
12. Maternity Care Service 71
13. Merchandise Coupons & Gift Certificates 72
14. Laundry & Dry Cleaning Service 74
15. Accommodation Service 83
16. Food & Beverage 84
17. Credit Card Industry 85
18. Pet Selling Industry 87
19. Overseas Language Training Program Agency 88
20. Travel Industry 89
21. Wedding Ceremony Service 96
22. Transportation Service 97
23. Overseas Study Program Agency 111
24. Satellite & Cable TV Broadcasting Service
25. Pharmaceutical & Chemical Products 112
26. Mobile Telecommunication Service 117
27. Trucking & Shipping Service 118
28. Internet Shopping Industry 120
29. Online Contents Service 121
30. Vehicle Towing Service 124
31. Vehicle Rental Service 124
32. Vehicle Repair Service 126
33. Electronic Cash Service 127
34. Water Purifier Rental Service 128
35. Parking Lots
36. Housing Construction 130
37. Used Home Appliance Sales 131
38. Used Car Sales 132
39. Windows & Doors Construction 133
40. Sports, Leisure & Discount Membership Service 134
41. High-Speed Internet Service 135
42. Courier & Delivery Service 137
43. Public Academic Institutes & Lifelong Learning Centers 137
44. Resort & Condominium Service 139
Appendix III. Warranty Period & Part Replenishment Period by Product Item 140
Regulations on Consumer Dispute Resolution for Consumer Damages
Enactment 31 December 1985
Revisions 14 July 1989
25 March 1993
16 July 1994
1 April 1996
13 March 1999
19 July 1999
4 December 2000
4 December 2001
31 December 2002
1 August 2003
1 November 2004
1 October 2005
16 October 2006
Article 1 (Purpose)
The purpose of this Regulations on Consumer Dispute Resolution for Consumer Damages (hereinafter referred to as the “Regulations on Consumer Dispute Resolution”) is to establish the Regulations on Consumer Dispute Resolution for consumer damages by product item according to the general Regulations on Consumer Dispute Resolution for Consumer Damages under the Enforcement Decree of the Act (Article 10), so as to smoothly settle B2C disputes in accordance with Article 12(2) of the Act.
Article 2 (Claim for Compensation)
If a consumer and a business (hereinafter referred to as the “party”) fail to reach a compensation agreement, the party can seek redress to the central administrative agency, state or local governments, or the Korea Consumer Agency.
Article 3 (Product Item & Regulations on Consumer Dispute Resolution)
The product items in question and the Regulations on Consumer Dispute Resolution by product item are each described as follows (Appendix I, Appendix II and Appendix III).
This Regulations on Consumer Dispute Resolution shall enter into force on August 1, 1989. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force on August 1, 1994. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force on April 1, 1996. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force after the date of its promulgation. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force on January 1, 2003. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force on August 1, 2003. (Proviso Omitted)
This Regulations on Consumer Dispute Resolution shall enter into force on November 1, 2004. (Proviso Omitted)
<Appendix I>
Product Items in Question
Classification / Product Description / Product Items1 / Matchmaking Service / Marriage Information
2 / Security Service / Security Services
3 / National Examination Preparation Center / National Examination Preparation Centers
4 / Public Service / Electricity Service
Telephone Service
5 / Industrial Goods / Home Appliances / TV, VTR, Refrigerator, Washing Machine, Fan, Air Conditioner, Radio, Recorder, Record Player, Microwave, Rice Pressure Cooker, Electric Iron, Electric Mattress Pad, Electric Blanket, Vacuum Cleaner, Electric Furnace, Electric Frying Pan, Humidifier, Head Phone, Electric Razor, Dish Washer & Dryer, Hair Dryer, Electric Oven, Electric Healing Medicine Maker, Electric Pot, Toaster, Curling Iron, Electric Mixer, Briquet Gas Ejector, Electric Pump, Juice Extractor, Mini Pressure Regulator, Electric Dehydrator, Fluorescent Lighting, Electric Stand, Electric Door Hanger, Door Phone, Water Thermos, Electric Heater, Heating Cabinet, Ventilator, Air Purifier, Current Sensor, Water Sprinkler, Water Cooler, Ice Machine, Anti-Theft Alarm System, Ice Shaver, Chime/Bell Ringer, Game Player, Gas Furnace, Antennae, Water Purifier, Water Heater, Bidet, Soft Water Purifier, DVD Player, MP3 Player, Voice-Pen, Hand Blender, Electric Fryer, Food Steamer, Halo Plate, etc.