(1) Where a consumer has cancelled, etc., an order pursuant to Article 17(1) or (3), he or she shall return the goods, etc., already delivered; provided, this shall not apply where goods, etc., already supplied are services or digital content. <Amended on Mar. 29, 2016>
(2) A mail order distributor (including a person who has received payment for the goods, etc., or a person who has concluded a contract on a mail order with a consumer; hereafter in paragraphs (2) through (10), the same shall apply) shall make a refund of the price of goods, etc., received, within three business days from any of the following dates. In such cases, if the mail order distributor delays the refund to the consumer, he or she shall pay a penalty interest for delay calculated by multiplying the interest rate prescribed by Presidential Decree within 40 percentage per annum (hereinafter referred to as "delay compensation"), taking into consideration an overdue interest rate applied by banks under the Banking Act and economic situation: <Amended on Mar. 29, 2016>
1. Where a mail order distributor has supplied goods, the date the goods are returned pursuant to the main clause of paragraph (1);
2. Where a mail order distributor has supplied any services or digital content, the date the order is cancelled, etc., pursuant to Article 17(1) or (3);
3. Where a mail order distributor has not supplied goods, etc., the date the order is cancelled, etc., pursuant to 17(1) or (3).
(3) In making a refund pursuant to paragraphs (1) and (2), where a consumer has paid the price of the goods, etc., by credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act, or other means of settlement prescribed by Presidential Decree, a mail order distributor shall promptly request a business operator who has supplied the relevant means of settlement (hereinafter referred to as "settlement business operator") to stop or cancel the request for payment; provided, if the mail order distributor has already received payment from the settlement business operator, he or she shall promptly make a refund to such settlement business operator, and notify the consumer of this fact.
(4) A settlement business operator who has received a refund pursuant to the proviso to paragraph (3) shall promptly make a refund to the consumer in question or take measures necessary for refund.
(5) A mail order distributor, who falls under the proviso to paragraph (3) and had a consumer make a payment due to a delayed refund, shall pay the consumer a delay compensation for the corresponding period.
(6) Notwithstanding the proviso to paragraph (3), where a mail order distributor fails to make a refund to a settlement business operator without good cause, a consumer may request the settlement business operator to offset the amount to be refunded against other debt he or she owes to the relevant mail order distributor. In such cases, the settlement business operator may offset by other debt that the consumer owes to the relevant mail order distributor, as prescribed by Presidential Decree.
(7) Where a settlement business operator delays offset referred to in paragraph (6) without good cause, the consumer may refuse to settle the payment to the settlement business operator. In such cases, neither mail order distributor nor the settlement business operator shall give any disadvantages to the consumer, such as treating the consumer as a person who has defaulted on making payment within the prescribed period, on the grounds of such refusal.
(8) In cases falling under paragraph (1) where goods, etc., have already been partially used or consumed, a mail order distributor may request a consumer to pay the amount equivalent to the profit the consumer gained from such partial use or consumption or to the expenses incurred in the supply of the goods, etc., within the amount prescribed by Presidential Decree.
(9) In cases of cancellation, etc., of an order under Article 17(1), a customer shall bear the expenses for returning the goods, etc., supplied and a mail order distributor shall not request the consumer to pay either the penalty for the breach of contract, or compensation for damage.
(10) In cases of cancellation, etc., of an order under Article 17(3), a mail order distributor shall bear the expenses for returning the goods, etc.
(11) Where a mail order distributor, a person who has received payment, or a person who has concluded a contract on a mail order with a consumer is not the same person, each one shall be jointly and severally liable for the performance of obligations relating to the refund of payment pursuant to paragraphs (1) through (7) upon the cancellation, etc., of an order pursuant to Article 17(1) and (3).[This Article Wholly Amended on Feb. 17, 2012]