Republic of Korea: Korea Fair Trade Commission issued correction of alleged unfair contract terms by Coupang, Naver, Kurly, SSG.COM, Gmarket, 11Street and NolUniverse

Description

Korea Fair Trade Commission issued correction of alleged unfair contract terms by Coupang, Naver, Kurly, SSG.COM, Gmarket, 11Street and NolUniverse

On 27 April 2026, the Korea Fair Trade Commission (KFTC) concluded its review of contract terms used by seven major online open-market operators, namely Coupang, Naver, Kurly, SSG.COM, Gmarket, 11Street and NolUniverse, finding 11 types of clauses across four categories to be unfair under the Act on the Regulation of Terms and Conditions. The first category covered operator liability exemptions and damages limitations, including clauses exempting or transferring personal data protection liability, clauses exempting platform brokerage liability, and clauses exempting operator liability where fault was concurrent with that of the user. The second category covered platform operating practices, including clauses giving operating policies precedence over published terms and clauses permitting unilateral changes to user-designated payment methods. The third category covered settlement and refund practices, including clauses withholding settlement of sales proceeds owed to vendors, clauses requiring forfeiture of restoration rights upon membership withdrawal, and clauses applying differentiated refund conditions to monthly and annual subscribers. The fourth category covered remaining contract terms, including clauses treating user silence as implied consent to amendments, clauses fixing dispute jurisdiction at the operator's home court, and clauses capping operator damages at KRW 100'000. All seven operators submitted corrective proposals and undertook to amend the affected clauses and submit proof of implementation.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
User/subject right
Regulated Economic Activity
platform intermediary: e-commerce
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2026-04-27
in force

On 27 April 2026, the Korea Fair Trade Commission (KFTC) concluded its review of contract terms use…