1.

Mandatory Designation of Domestic Agent for Overseas E-Commerce Businesses That Exceed Certain Threshold

This amendment imposes an obligation to designate a domestic agent on overseas e-commerce businesses, including sellers and intermediaries in electronic commerce who do not have an address or place of business in Korea and exceeds a certain threshold (based on criteria such as sales revenue and consumer size). The Korea Fair Trade Commission (the “KFTC”) will be authorized to request businesses to submit data relating to sales revenue, consumer size, and other relevant information to determine whether they are subject to the domestic agent designation requirement.

The elements, obligations, and penalties for violations relating to the domestic agent obligation under this amendment are as follows:
 

• The domestic agent must have an address or place of business within Korea. If the principal business entity that bears the obligation to designate a domestic agent owns any of the following corporations, the principal business entity must designate a domestic agent from such corporations:

• The name, address, telephone number, and email address of the domestic agent must be disclosed on the internet homepage or similar platforms. The domestic agent must maintain valid contact methods with the principal business entity that designated the domestic agent.
   

• The domestic agent must perform the following duties. If the domestic agent fails to perform these duties, the principal business entity that designated the domestic agent may be deemed to have violated the E-Commerce Act and may be subject to corrective measures and fines:

In addition, corrective measures and fines may be imposed in cases where a business entity obligated to designate a domestic agent (i) fails to designate a domestic agent, (ii) designates a domestic agent who does not meet the legal requirements, (iii) fails to disclose matters related to the domestic agent, or (iv) refuses to submit requested data or submits false data in response to the KFTC’s request to verify the obligation to designate a domestic agent without justifiable cause.
 

2.

Introduction of Consent Decree System

This amendment introduces a consent decree system to the E-Commerce Act.

According to this amendment, a business under investigation or review by the KFTC for violations of the E-Commerce Act may prepare a corrective measure plan and apply for a consent decree. If the KFTC recognizes that the corrective measure plan and the expected sanctions are balanced and appropriate for consumer protection, it may suspend the review process and approve the consent decree based on the submitted corrective measure plan. However, if the business entity fails to implement the corrective measures in the consent decree within the designated deadline without justifiable reasons, a performance enforcement penalty may be imposed on the business entity.
 

3.

Lowered Requirements for Issuing Temporary Suspension Orders

This amendment relaxes the requirements for issuing a “temporary suspension order” under the E-Commerce Act against businesses that solicit consumers by providing false or exaggerated information or using deceptive methods:
 

4.

Establishment of Regulatory Framework for Consumer-to-Consumer (C2C) Transactions

This amendment requires online sales brokers to verify the telephone numbers and other contact information of the seller where the online sales brokerage requestor in a transaction is an individual (“individual sellers”) rather than a business entity (“C2C transaction”). This amendment also prescribes that online sales brokers must provide the information and transaction history of the individual sellers upon a request by the consumer damage dispute resolution bodies, courts and consumer in relation to a dispute over a C2C transaction (provided that in the case of a request by a consumer, the individual seller’s information will only be disclosed upon the individual seller’s consent).

In addition, if individual sellers and business entities coexist, the online sales broker must appropriately distinguish and indicate whether the seller is an individual or a business entity. Lastly, if a payment escrow service is available for use by a consumer in a C2C transaction, the online sales brokers must notify both the individual seller and consumer of the availability of the payment escrow service and recommend its use.

Online sales brokers who violate these obligations may be subject to corrective measures and fines.
 

5.

Obligation to Disclose Criteria for Deletion of Product Reviews and Procedures for Objection

This amendment requires businesses engaged in electronic commerce or online sales to disclose information regarding the posting period, rating evaluations, deletion criteria, and objection procedures of consumer product reviews. Failure to disclose such information may result in corrective measures and fines.
 

6.

Increased Fines

Additionally, this amendment raises the maximum fines for (i) acts subject to fines of up to KRW 10 million under the current law to KRW 20 million, and (ii) acts subject to fines of up to KRW 5 million under the current law to KRW 10 million.