(1) The Fair Trade Commission may encourage related business operators to conclude any of the following contracts (hereinafter referred to as "contract, etc. of consumer damage compensation insurance") for the purpose of consumer protection in an electronic commerce transaction or a mail order; provided, the issuer of the means of settlement referred to in Article 8(4) shall conclude a contract, etc. of consumer damage compensation insurance:
1. An insurance contract under the Insurance Business Act;
2. A contract of a debt guarantee signed with the institution under Article 38 of the Act on the Establishment of Financial Services Commission to secure payment of consumer damage compensation;
3. A mutual aid contract with the mutual aid association established pursuant to paragraph (10).
(2) Notwithstanding paragraph (1), where a consumer chooses to use the escrow system under Article 13(2)10 or requires the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance with respect to a prepaid mail order, the mail order distributor shall allow the consumer to use such system or conclude the contract, etc.
(3) Paragraph (2) shall not apply where a consumer conducts any of the following transactions:
1. Deleted; <May 28, 2013>
2. A transaction of paying for goods, etc. by credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act. In such cases, if a consumer fails to receive the goods, etc., the credit card company as defined in subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act shall cooperate in cancelling the payment, etc. for the prevention and recovery of damage to the consumer;
3. A transaction of buying goods, etc. which are sent through information and communications networks or the delivery of which is not confirmable by a third party referred to in Article 13(2)10;
4. A transaction of buying goods, etc. supplied in installments for a certain period of time;
5. Transactions determined and publicly notified by the Fair Trade Commission as those which do not require an escrow system or a contract, etc. of consumer damage compensation insurance or for whom such system or contract is not easily available because the safety of purchase is firmly secured by other statutes or there exist other causes similar to those in subparagraphs 1 through 4.
(4) Matters necessary for the use of an escrow system or the conclusion of a contract, etc. of consumer damage compensation insurance under paragraph (2) shall be prescribed by Presidential Decree.
(5) A contract, etc. of consumer damage compensation insurance shall provide a level of coverage adequate enough to pay compensation for damage to consumers caused by any violation of this Act, or to secure the confidence in the issuer of the settlement means under Article 8(4). In such cases, the detailed standards thereof shall be prescribed by Presidential Decree.
(6) A person who is liable to pay the consumer damage compensation pursuant to the contract, etc. of consumer damage compensation insurance shall make a payment without delay where a cause of payment arises, and in the event of a delayed payment, he or she shall pay the compensation for such delay.
(7) A business operator who intends to conclude a contract, etc. of consumer damage compensation insurance shall not submit false data on sales amount, etc. to conclude a contract, etc. of consumer damage compensation insurance.
(8) A business operator who has concluded a contract, etc. of consumer damage compensation insurance under paragraph (1) may use a mark indicating the fact, but the business operator who has not concluded such contract, etc. shall not use a mark, or make or use any similar mark.
(9) Paragraph (8) shall apply mutatis mutandis to the use of the escrow system under paragraph (2).
(10) Business operators conducting an electronic commerce transaction or mail order distributors may establish a mutual aid association to protect consumers pursuant to paragraph (1). In such cases, Article 38 of the Act on Door-to-Door Sales shall apply mutatis mutandis to the establishment and operation of the mutual aid association under the condition that "business operators who have filed a report under Article 5(1) or registered their business under Article 13(1) or Article 29(3)" in Article 38(1) of the said Act shall be construed as "business operators who conduct an electronic commerce transaction or mail order distributors" and "Article 37(1)3" as "Article 24(1) 3 of the Act on the Consumer Protection in the Electronic Commerce Transactions", and "this Act" in Article 38(9) and (10) of the Act on Door-to-Door Sales as "the Act on the Consumer Protection in the Electronic Commerce Transactions," respectively.[This Article Wholly Amended on Feb. 17, 2012]