Terms and Conditions of Electronic Financial Transaction Services

Article 1 (Objective)

The objective of this agreement is to set forth basic terms relating to the electronic financial transactions between NHN KCP Corp. ( “Company ”) and Users of the electronic payment agency service and escrow (payment deposit) service provided by the Company.

Article 2 (Definitions)

The terms of this agreement have the following meanings:

(1) "Electronic Financial Transaction" means a transaction whereby the Company provides electronic payment agency service and escrow (payment deposit) service (collectively "Electronic Financial Transaction Service") and a User uses such services in automated system without direct communication with employees of the Company.

(2) "Electronic Payment Agency Service" means a service of receiving or transmitting payment information electronically or carrying out settlement of payment on behalf of a User or brokering settlement of payment.

(3) "Escrow (Payment Deposit) Service" means, in connection with a User’s purchase of products or use of service, a service whereby the if the amount of payment for such products or services is paid in advance before receiving products or using services, the amount of such payment is deposited with the Company until it is confirmed that a User received products or used services.

(4) "Merchant" means any person, other than a financial company or an electronic financial business entity, who supplies goods or services to users in transactions conducted by an electronic debit payment means, electronic prepayment means or electronic currency under a contract concluded with a financial company or an electronic financial business entity.

(5) "User" means a party who consents to this Agreement and uses Electronic Financial Services provided by the Company.

(6) "Medium of Access" means information or means used to secure veracity and accuracy of the transaction details and User, or give Transaction Instruction in Electronic Financial Transaction, and refers to electronic card or other similar electronic information (including credit card number), certificate provided under the Digital Signature Act, User number registered with the Company, User’s bio-data, password necessary to use the aforementioned means or information, etc., as prescribed under the Article 2, Item 10 of the Electronic Financial Transaction Act.

(7) "Transaction Instruction" means the User's instruction to the Company to process Electronic Financial Transaction in accordance with Electronic Financial Transaction contract pursuant to this standard agreement.

(8) "Error" means an instance where an Electronic Financial Transaction has not been processed in accordance with Electronic Financial Transaction contract or Transaction Instruction without intentional misconduct or negligent act or omission of a User.

Article 3 (Posting and Amendment)

(1) Company shall post this agreement so that a User can confirm the material terms of this agreement before using the Electronic Financial Transaction Service.

(2) If a User requests a copy of this agreement, the Company shall provide such copy of this agreement via transmission of electronic document.

(3) In the event of amendment of this agreement, the Company shall post the amended agreement on its website or the initial screen page of the Electronic Financial Services no later than one (1) month before the effective date of the amendment. That if the terms and conditions are urgently altered due to any amendment to Acts and subordinate statutes, it or he/she shall promptly publish the terms and conditions so altered and inform the Users.

(4) In case where “User” does not agree to the altered terms and conditions, the service cannot be provided, and the user may terminate the service contract.

Article 4 (Electronic Payment Agency Services)

Electronic Payment Agency Services are classified in accordance with payment method as follows:

(1) "Credit Card Payment Service" means a service whereby a User pays by credit card. Company receives and transmits credit card payment information via electronic payment system and settles the payment amount on behalf of the User, or brokers’ settlement.

(2) "Account Transfer Service" means a real-time wire transfer service whereby a User, through the Company's electronic payment system, withdraws the payment amount from his/her account registered at a financial institution and transfers to another account.

(3) "Virtual Account Service" means a service of automatically providing a User who wants to pay in cash with a one-time disposable account for payment through the Company’s electronic payment system.

(4) Others include services provided the company such as "Mobile Phone Payment Service," "ARS Payment Service," "Gift Certificate Payment Service," "Transportation Card Payment Service," etc.

Article 5 (Escrow (Payment Deposit) Service)

(1) User (in this Article 5, User includes a party to be provided with products or services if a User consents) shall notify the Company of the fact the User has been provided with products or services within three (3) business days from the date when such products or services were provided.

(2) After notified of the fact that a User has been provided with products or services, the Company shall make payment to the on-line seller for the products or services within the period agreed between the Company and the on-line seller.

(3) If a User does not notify the Company of the fact he/she has been provided with products or services for three (3) business days after the receipt date of such products or services, the Company may make payment to the on-line seller for the products or services without the User’s consent.

(4) The company will refund the corresponding amount to the customer in case users need to receive refund before the company settles the transaction amount.

(5) Apart from this contract, in order to specify the rights and liability related to Payment Deposit Service Terms and Conditions between the Company and User, Company may enact separate Payment Deposit Service Terms and Conditions.

Article 6 (Service Hours)

(1) Company shall provide the Electronic Financial Transaction Service 24 hours a day all year round; provided, however, the service hours may change depending on the circumstance of the financial institution or other payment method issuer.

(2) If suspension of the Service is inevitable due to repair, inspection or other technical necessity or other circumstances of a financial institution or other payment method issuer, the Company may temporarily suspend its Service after posting a notice on its website through available electronic methods no later than three (3) days before the date of suspension; provided, however, the Company may suspend its service without posting a notice in emergencies such as system failure, urgent program fix, external factors, etc.

Article 7 (Selection, Use and Maintenance of Medium of Access)

(1) Company may select a Medium of Access and confirm a User’s identity, authority and details of Transaction Instruction to provide Electronic Financial Transaction Service.

(2) User shall not lend nor assign the Medium of Access to a third party. User shall not delegate the use of the Medium of Access to a third party nor shall provide such as collateral.

(3) User shall not disclose nor leak his/her own Medium of Access to a third party. User shall exercise sufficient care in order to prevent forgery or falsification of such Medium of Access.

(4) In case a User notifies the Company of any loss or theft of the Medium of Access, the Company shall be responsible for damages incurred by such User by a third party’s use of such Medium of Access after the notification.

Article 8 (Confirmation of Transaction Information)

(1) Company shall have a User confirm details of his/her transaction (including without limitation a User’s “details of request for correction and results of processing”) by electronic methods agreed between the parties. If requested by a User, the Company shall provide the User with a copy of such information by fax, etc., within two (2) weeks from the date of such request.

In the case where Company cannot provide transaction details due to electronic devices’ operational failures or other causes, Company shall promptly inform a User through electronic documents(including e-mails), and the period of sending written documents does not include the period of unable to provide transaction details.

(2) Among the transaction details provided by the Company to a User, the name or number of the transaction account, the type and amount of the transaction, information indicating the counterparty, the date of the transaction, the type of electronic device, information that can identify the electronic device, and the relevant electronic financial transaction access records of related electronic devices, fees received by the company in exchange for Electronic Financial Transaction, matters regarding Users' consent to withdrawal, matters regarding application for Electronic Financial Transaction and changes in conditions, Electronic Financial Transactions in which the transaction amount exceeds KRW 10,000 records on transactions are kept for 5 years, and records of small Electronic Financial Transactions in which the transaction amount is less than KRW 10,000 per transaction, records of transaction approval when using electronic payment methods, and information on User’s request for error correction and processing results are kept for 1 year. The Company provides a User with matters regarding the fee received in exchange for providing the Electronic Payment Agency Service.

(3) A User may request a copy of the information regarding his/her transaction at the following address:

Address: NHNKCP, 72, Digital-ro 26-gil, Guro-gu, Seoul, Republic of Korea

Email Address: help@kcp.co.kr

Phone: +82-1544-8667

Article 9 (Correction of Error, etc.)

(1) A User may request the Company to correct an error in connection with his/her Electronic Financial Transaction Service.

(2) In the event of a request provided in the above Article 9, Paragraph 1 or when the Company detect an error on its own, the Company will promptly investigate and handle the matter and notify the result thereof within two (2) weeks from the date on which the correction request is received or the date the error is found.

Article 10 (Merchants Compliance Matters, Etc.)

(1) Merchants shall not refuse to provide goods or services or treat a User unfavorably for transactions by means of direct payment electronic payment, prepaid electronic payment, or electronic money (hereinafter referred to as "electronic money, etc.”).

(2) Merchants should not require a User to bear merchant fees.

(3) Merchants shall not engage in any of the following acts.

1. Pretending to have made a transaction by electronic money, etc. without the provision of goods or services, etc.

2. Conducting transactions with electronic money, etc. in excess of the actual sales amount

3. Conducting transactions with electronic money, etc. under the name of another Merchant

4. Lending the name of the Merchant to another person

5. Acting as a proxy for transactions by electronic money, etc.

(4) No person who is not Merchant shall make transactions by electronic money, etc. under the name of Merchant.

Article 11 (Merchant Recruitment, etc.)

(1) When recruiting Merchant, the Company must check the business status of the person who wants to become Merchant. However, this is not the case for Merchants that have already been verified in accordance with Article 16-2 of the Specialized Credit Finance Business Act.

(2) The Company must inform Merchants of the following matters in accordance with the method determined by the Financial Services Commission.

1. Merchant fees

2. Responsibility for merchants pursuant to the provisions of paragraph (2)

3. Merchant compliance matters in accordance with the preceding provisions

(3) The Company shall terminate the merchant agreement without delay unless there are any special reasons when the reason determined by presidential decree applies, such as the merchant is punished for violating the provisions of the preceding article, or receives a written notification of a violation from a relevant administrative agency, etc. The term 'the reason determined by presidential decree' refers to cases falling under any of the following subparagraphs.

1. When Merchant is sentenced to legal punishment for violating Article 26 of the Electronic Financial Transactions Act or the preceding paragraph (3), subparagraphs 3. through 5.

2. When the Company has a written notification from a relevant administrative agency regarding the fact that the Merchant has violated the preceding paragraph (1), (2) or (3), subparagraphs 3. through 5.

3. In the case of receiving a written notice of the closure of Merchant from the relevant administrative agency.

Article 12 (Company’s Responsibility)

(1) The Company is responsible for damages caused to a User due to accidents caused by forgery or falsification of a Medium of Access. However, if a User violates Article 7, Paragraph 2, or even though a User knew or should have known that a third party could make Electronic Financial Transactions using the user's Medium of Access without authorization, if the Medium of Access is leaked, exposed, or left unattended, the Company may make a User bear all or part of the responsibility.

(2) The company is responsible for compensating a User for any damages caused to a User due to an accident occurring in the course of signing a contract or electronic transmission or processing of a Transaction Instruction. However, in the case of the proviso to Paragraph 1 of this Article or in the event that damage occurs to a User who is a corporation (excluding a small corporation under Article 2 Paragraph 2 of the 'Framework Act on Small and Medium Enterprises') despite the fact that the Company has fulfilled its reasonably required due diligence, such as establishing a security procedure and thoroughly complying with it, the Company is not responsible for compensating a User for damage.

(3) Even if there is a Transaction Instruction from a User, the Company shall not be responsible for damages incurred by a User due to delay or failure of transaction caused by the acts of God, blackout for which the Company is not responsible, fire, communication problems or other conditions beyond the Company’s control if the User has been notified of such delay or failure of transaction (including notification by financial institution, payment method issuer or on-line seller).

(4) Company shall be responsible for compensating a User for damages caused by electronic devices for Electronic Financial Transaction or Medium of Access obtained by fraud or other fraudulent means under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.

However, in the following cases, the Company shall not be responsible for any or all of the User's damages.

1) In the event of an accident under Article 9 (1) 3 of the Electronic Financial Transactions Act due to a User's refusal to take additional security measures required for Electronic Financial Transactions in order to enhance security other than confirmation by the Medium of Access;

2) Where an accident occurs due to the following acts against the media, means or information used in additional security measures under the Article 12, Paragraph 4, subparagraph 1:

(i) Disclosure, leakage, or neglect;

(ii) An act of lending to a third party or delegating the use thereof, or providing it for the purpose of transfer or collateral

Article 13 (Effect of Electronic Payment Contract)

(1) If User’s Transaction Instruction relates to electronic payment transaction, Company makes payment on behalf of a User and transmits details of such Transaction Instruction so that the payment is made.

(2) The Company shall refund the received funds in the event payment transaction has not been made in accordance with a User’s Transaction Instruction in regard to electronic payment transaction.

Article 14 (Cancellation of Transaction Instruction)

(1) A User may cancel the Transaction Instruction on electronic payment transaction by contacting the following address, e-mail address and contact number until ‘the payment becomes effective’.

Address: NHNKCP, 72, Digital-ro 26-gil, Guro-gu, Seoul, Republic of Korea

Email Address: help@kcp.co.kr

Phone: +82-1544-8667

(2) ‘the payment becomes effective’ in the preceding paragraph means the following;

(i) In the case of electronic fund transfer: When the deposit record is completed in the account ledger of the Transaction Instruction where the recipient's account is opened

(ii) In case of payment by other electronic payment means: When the information on the amount of the Transaction Instruction has been entered into the electronic device of the financial institution where the recipient's account is opened

(3) After ‘the payment becomes effective’, a User is entitled to refund of the payment in accordance with the Article 5 herein or order cancellation provision under the Act on the Consumer Protection in Electronic Commerce, Etc.

Article 15 (Generation and Retention of Electronic Payment Agency Service Record)

(1) Company generates and retains records whereby a User may search or trace the details of his/her Electronic Financial Transaction, or confirm or correct any error in connection therewith.

(2) Record types and retention method thereof shall be provided under Article 8, Paragraph 2 herein.

Article 16 (Prohibition of Providing Electronic Financial Transaction Information)

Company will not disclose to a third party the information obtained in connection with provision of the Electronic Financial Transaction Service, such as a User’s personal data, account information, Medium of Access or details and history of the Electronic Financial Transaction, etc. nor will use such information outside the scope of business without User’s consent. However, the information can be provided if it is provided in accordance with the due process in accordance with the relevant laws, such as the Protection of Communications Secret Act and the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.

Article 17 (Termination of Agreement and Restrictions on Use)

(1) A User may cancel the Electronic Financial Transaction Service contract through the service website or customer center.

(2) The Company may immediately terminate the Electronic Financial Transaction Service contract or restrict the use of the Electronic Financial Transaction Service without prior notice if a User does not fulfill his/her obligations under these Terms and Conditions. If a User has any objections to the Company's actions, a User can file an objection through the service website or customer center.

(3) If such objection as in the previous paragraph is judged to be justified, the Company will immediately resume the User’s use of the Electronic Financial Transaction Service.

Article 18 (Disputes)

(1) A User may request the following person in charge of consumer-related disputes for receiving complaint or suggestion regarding Electronic Financial Transaction Service, or claim for damages, etc.

Team in Charge: Risk Management Team

Contact Information (Phone Number & Email) : +82-70-5075-8041, minwon@kcp.co.kr

(2) In case a User requests the Company to handle a dispute, the Company notifies a result of investigation or handling of such matter within fifteen (15) days from the date of such request.

(3) A User may apply for mediation in connection with his/her use of the Company’s Electronic Financial Transaction Service to the Financial Disputes Mediation Committee of the Financial Supervisory Service under the Article 51 of the Act on the Establishment, Etc. of Financial Services Commission(Currently established in accordance with Article 33 of Act On The Protection of Financial Consumers), or to Korea Consumer Agency under the Article 33 of the Frame Work Act on Consumers.

Article 19 (Company’s Obligation to Secure Stability)

For the purpose of securing reliability and stability of the Electronic Financial Transaction, the Company complies with the standard prescribed by the Financial Services Commission with regard to information technology and electronic finance including manpower, facilities, electronic device, etc., for electronic transmission or handling according to the type of Electronic Financial Transactions.

Article 20 Governing Law and Jurisdiction

(1) If the individual agreement between the Company and a User differs from this agreement, the individual agreement shall take precedence over this agreement.

(2) Disputes not covered in this agreement shall be governed by the provisions of relevant laws such as Electronic Financial Transaction Act, Act on the Consumer Protection in Electronic Commerce, Etc, Specialized Credit Financial Business Act, etc.

(3) Disputes between the Company and a User shall be resolved through the competent court under the Civil Procedure Act.

Supplementary Provision <No. 1, 2006.12.26. >

These Terms and Conditions shall take effect from January 1, 2007.

Supplementary Provision <No. 2, 2011.01.17. >

These Terms and Conditions shall take effect from February 21, 2011.

(Article 2 (4) newly established, Article 8 (2) partially revised, Article 10 newly established, Article 11 newly established)

Supplementary Provision <No. 3, 2015.10.14. >

These Terms and Conditions shall take effect from October 14, 2015.

(Article 17 (1) partially revised, Article 12 (5) newly established)

Supplementary Provision <No. 4, 2016.04.08. >

These Terms and Conditions shall take effect from April 26, 2016.

(Article 1 partial revision, Article 8 (3) partial revision)

Supplementary Provision <No. 5, 2016.11.11. >

These Terms and Conditions shall take effect from November 21, 2016.

(Article 17 newly established, Article 3 (3) and (4), Article 9 (2), Article 14 (1), Article 16, and Article 18 (3) partially amended)

Supplementary Provision <No. 6, 2016.11.28. >

These Terms and Conditions shall take effect from November 28, 2016.

(Article 12 (1) deleted, Article 6 (2), Article 8 (1) and (2), Article 9 (2), and Article 19 amended, Article 20 (1) newly established)

Supplementary Provision <No. 7, 2018.01.19. >

These Terms and Conditions shall take effect from February 22, 2018.

(Article 12 (1) and (2) partially amended)

Supplementary Provision <No. 8, 2018.07.23. >

These Terms and Conditions shall take effect from July 31, 2018.

(Article 18 (1) partially amended)

Supplementary Provision <No. 9, 2018.11.15. >

These Terms and Conditions shall take effect from December 20, 2018.

(Article 8 (3), and Article 14 (1) amended)

Supplementary Provision <No. 10, 2019.05.21. >

These Terms and Conditions shall take effect from May 31, 2019.

(Article 8 (3), and Article 14 (1) amended)