(1) In recruiting a chain store, any financial company or electronic financial business entity shall confirm whether the store seeking membership actually carries on its own business; provided, this shall not apply to a chain store which has already been confirmed under Article 16-2 of the Specialized Credit Finance Business Act. <Amended on May 22, 2013>
(2) No financial company or electronic financial business entity shall have its chain store bear a loss incurred by either of the following transactions; provided, the same shall not apply where a financial company or an electronic financial business entity concludes a contract with its chain store to the effect that such loss shall be fully or partially borne by the chain store when the financial company or electronic financial business entity proves the intention or gross negligence of the chain store in connection with the transaction: <Amended on May 22, 2013>
1. A transaction conducted using a lost or stolen electronic currency, etc.;
2. A transaction conducted using a forged or altered electronic currency, etc.
(3) Any financial company or electronic financial business entity shall inform its chain stores of the following matters, in the manner prescribed by the Financial Services Commission: <Amended on Feb. 29, 2008; May 22, 2013>
1. A merchant fee to be borne by chain stores;
2. Liability for chain stores under paragraph (2);
3. Matters to be observed by chain stores under Article 37.
(4) When a chain store is sentenced to a punishment for violating Article 37 or receives a written notification of such violation from the relevant administrative agency, and thus falls under the grounds prescribed by Presidential Decree, the relevant financial company or electronic financial business entity shall, without delay, terminate the contract with the said chain store unless any special ground exists to the contrary. <Amended on May 22, 2013>