Overview of Korean Legislation on Cross-Border E-Commerce (CBEC) September 2018 by AHN, ByungSoo
Korean law on Cross-Border E-Commerce (CBEC) in September 2018 is discussed in detail. The necessity of legislation for CBEC, current status of CBEC in Korea, existing legislations for CBEC, and a case of insufficient legal remedy are covered. The content dives into reasons for the legislative requirements for CBEC, the growing trend of CBEC in Korea, and the specific laws governing CBEC in different fields.
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A Brief Introduction of Korean Law on CBEC September 2018 AHN, ByungSoo abs@sdu.ac.kr
Contents Contents . Introduction Why do we need legislation for CBEC . Current status of CBEC in Korea . Legislations for CBEC in Korea . Case of insufficient legal remedy . Conclusion
. Introduction . Introduction - - Why do we need legislation for CBEC? Why do we need legislation for CBEC? To meet the demands of the legal certainty of CBEC Without law there are no certainty in CBEC To make traditional laws coincide with CBEC Traditional legal system do not support fully CBEC yet To provide standards and model for CBEC to the related parties Under the law, all parties who participate in CBEC are able to align with one another
. Current Status of CBEC in Korea . Current Status of CBEC in Korea CBEC Trend in Korea Unit : Million US$ Y16Q1 459 401 Q2 444 370 Q3 504 402 Q4 653 541 Y17Q1 690 483 Q2 516 478 Q3 673 460 Q4 771 595 Y18Q1 750 580 Q2 803 617 CBEC Sale CBEC Purchase Source : Statistics Korea, Aug. 2, 2018 China and Korea is largest CBEC partner to each other China had 78.5% of Korean CBEC sale in 2017 China had 57.3% of Korean CBEC purchase in 2017 Korean CBEC customer bought fashion goods(36.2%), food(24.2%), electronic goods(12.4%) etc. Korean CBEC seller sold cosmetics(75.8%), fashion goods(13.9%) etc.
. Legislations for CBEC in Korea . Legislations for CBEC in Korea 1. Overview of legislations for CBEC in Korea(1) 1. Overview of legislations for CBEC in Korea(1) Application Application Field Electronic Commerce Field Related Related Laws Laws FRAMEWORK ACT ON ELECTRONIC DOCUMENTS AND TRANSACTIONS DIGITAL SIGNATURE ACT ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE, ETC. ELECTRONIC FINANCIAL TRANSACTIONS ACT ACT ON PROMOTION OF INFORMATION AND COMMUNICATIONS NETWORK UTILIZATION AND INFORMATION PROTECTION, ETC. CUSTOMS ACT MEDICAL DEVICES ACT : medical devices HEALTH FUNCTIONAL FOODS ACT : health functional foods LIVESTOCK PRODUCTS SANITARY CONTROL ACT : livestock products PESTICIDE CONTROL ACT : agricultural pesticides Customs Clearance Requirement of Declaration/Registration for sale
. Legislations for CBEC in Korea . Legislations for CBEC in Korea 1. Overview of legislations for CBEC in Korea(2) 1. Overview of legislations for CBEC in Korea(2) Application Application Field Requirement of Technical Certification Field Related Related Laws Laws RADIO WAVES ACT : broadcasting communication equipment ELECTRICAL APPLIANCES AND CONSUMER PRODUCTS SAFETY CONTROL ACT : electrical appliances, industrial products(inc. children s goods) PHARMACEUTICAL AFFAIRS ACT : medicine MEDICAL SERVICE TECHNOLOGISTS, ETC. ACT : glasses, contact lens LIQUOR TAX ACT : alcoholic drink TOBACCO BUSINESS ACT : tobacco ACT ON THE SAFETY MANAGEMENT OF GUNS, SWORDS, EXPLOSIVES, ETC. : gun, swords, crossbow, gunpowder, taser gun Prohibition in E- Commerce
. Legislations for CBEC in Korea . Legislations for CBEC in Korea 2. Purpose of major acts related to CBEC in Korea(1) 2. Purpose of major acts related to CBEC in Korea(1) ACT ACT COMMERCE, COMMERCE, ETC ON ON THE THE ETC. . CONSUMER CONSUMER PROTECTION PROTECTION IN IN ELECTRONIC ELECTRONIC The purpose of this Act is to protect the rights and interests of consumers and enhance market confidence by prescribing matters relating to the fair trade of goods or services by means of electronic commerce transactions, mail orders, etc. ELECTRONIC ELECTRONIC FINANCIAL FINANCIAL TRANSACTIONS TRANSACTIONS ACT ACT The purpose of this Act is to ensure the safety and reliability of electronic financial transactions by clarifying their legal relations and to promote financial conveniences for people.
. Legislations for CBEC in Korea . Legislations for CBEC in Korea 2. Purpose of major acts related to CBEC in Korea(2) 2. Purpose of major acts related to CBEC in Korea(2) ACT ACT NETWORK NETWORK UTILIZATION ON ON PROMOTION PROMOTION UTILIZATION AND INFORMATION INFORMATION AND INFORMATION INFORMATION PROTECTION, OF OF AND AND COMMUNICATIONS COMMUNICATIONS ETC. . PROTECTION, ETC The purpose of this Act is to contribute to improving citizens lives and enhancing public welfare by facilitating utilization of information and communications networks, protecting personal information of people using information and communications services, and developing an environment in which people communications networks in a healthier and safer way. can utilize information and CUSTOMS CUSTOMS ACT (Notification (Notification of of Special ACT Special Customs Customs Clearance Clearance for for Electronic Electronic Commerce Commerce Goods, Goods, etc etc. .) ) The purpose of this Act & Notification is to properly administer the customs clearance of exported and imported especially electronic commerce goods.
. Case of insufficient legal remedy . Case of insufficient legal remedy Which Which law damage? damage? law will will apply apply to to compensation compensation for for the the CBEC CBEC consumer s consumer s Law of consumer s country, Law of seller s country, international treaty? According to Korea Consumer Agency, the claims of Korean CBEC consumer increased three times during last two years. CBEC consumers have been damaged by various type of reason (delay of delivery, wrong delivery, loss and damage of goods, defective goods, refusal of return/refund, excessive shipping charge, refusal of after service etc.). However they can not find proper legal remedy means because of absence of rules itself, difference of rules among legal territory and ignorance of the legal system.
. Conclusion . Conclusion CBEC is quick, efficient, convenient, and cost effective way to get desired goods. As in the rest of the world, many Korean people are familiar with CBEC as a way to shop for their own consumption. In Korea, the government and business have arranged CBEC environment by developing relevant policies, financial support, legal framework, etc. for more than 10 years. As a result, the number and amount of CBEC purchase in Korea has increased from 3.8 million (US$ 0.33 billion) to 13.2 million (US$ 0.87 billion) over the last 5 years (2013-2017). However, CBEC is not realized as local transaction yet, because of several reasons. Legal framework is not just one of the reasons but first step of the constructing CBEC environment. For solving, the legal uncertainty of CBEC, the inconvenience of transaction process, anxiety of wrongful use of personal information, protection of consumers right and rapid customs clearance, global and national legislation is the only and fastest way.
