South Korean Government to Control E-Commerce Sites Directly

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South Korean Government can immediately suspend services from e-commerce sites that are fraud. 

Once consumers use digital contents such as dramas, music and others that have ‘preview’, it will be impossible for those consumers to receive refund.

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Fair Trade Commission (FTC) made an announcement on the 3rd that it will make a pre-announcement of ‘Enforcement Ordinance of E-Commerce Laws and Revised Bill of Enforcement Regulations’ that has such information.

Starting from the 30th of September, FTC will enforce ‘Temporary Suspension Order System’ that forcefully closes sites that are fraud. Even before formal corrective actions can be taken, entire or partial e-commerce transactions can be stopped. FTC can request an action to hosting service providers (services that manage servers and establish cyber malls so that businesses can start their e-commerce businesses) to stop services.

When digital contents providers provide products such as ‘preview’ for testing certain contents, one’s right to cancel such as refund becomes ineffective after formal services (downloads) are started. Businesses need to provide one of the following: approval of partial use (preview of a minute of a song), approval of temporary use (software that can be used for 7 days), and supply of digital contents for experience (viewer program).

When consumers request portal sites such as Naver, Daum and others for counseling on damage relief of consumers’ e-commerce transactions, they need to send such information to dispute conciliation organization within 3 days. They need to indicate tasks of dispute conciliation organizations and procedure of damage relief on their cafes, blogs or others so that consumers can select appropriate organizations for consumer damages.

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“During pre-announcement of legislation period until the 13th of June, we are going to listen to all opinions from people that are concerned, related government organizations.” said a representative for FTC. “We are going to finish process of revision after going through vice-ministers and cabinet meetings in the future and implement these regulations starting from the 30th of September.”

Staff Reporter Yu, Seonil | [email protected]

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