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FRAMEWORK ACT ON ELECTRONIC COMMERCE

26

395 (Supp. 45)

FRAMEWORK ACT ON

ELECTRONIC COMMERCE

Wholly Amended by Act No. 6614, Jan. 19,2002

Amended by Act No. 7440, Mar. 31,2005

Act No 7796, Dec. 29,2005

Act No. 7988, Sep. 27,2006

Act No. 8362, Apr. 11,2007

Act No. 8371, Apr. 11,2007

Act No. 8387, Apr. 27,2007

Act No. 8461, May 17,2007

Act No. 8466, May 17,2007

Act No. 8802, Dec. 27,2007

Act No. 8852, Feb. 29,2008

Act No. 8932, Mar. 21,2008

Act No. 8979, Mar. 21,2008

Act No. 9246, Dec. 26,2008

Act No. 9429, Feb. 6,2009

Act No. 9504, Mar. 18,2009

Act No. 9705, May 22, 2009

Act No. 9708, May 22, 2009

CHAPTER GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to contribute to the national economy by clarifying legal relations of the electronic commerce, ensuring its security and reli- ability, and laying the foundation for its promotion. Article 2 (Definitions)

The definitions of terms used in this Act shall be as follows:

1. The term electronic document means any information prepared, transmitted, received or stored in the electronic form by the information processing system;

2. The term information processing system means any electronic appara- tus or system with an ability to process information, which is used in preparing, transmitting, receiving or storing electronic documents;

3. The term originator means a person who prepares and transmits an electronic document;

FRAMEWORK ACT ON ELECTRONIC COMMERCE

396(Supp. 45)

4. The term addressee means the other party to whom the originator transmits an electronic document;

5. The term electronic commerce means any transaction of which the whole or part of goods or service is made through electronic documents in transacting goods or service;

6. The term business operator of electronic commerce means a person who operates a business of electronic commerce;

7. The term user of electronic commerce means a person who uses electronic commerce other than the business operator of electronic commerce;

8. The term authorized electronic documents depository means a juristic person performing the business of custody or certification of electronic docu- ments for others, or other businesses related to electronic documents (hereinafter referred to as custody of electronic documents, etc. ), after designated pursuant to Article 31-2 (1).

Article 3 (Scope)

This Act shall apply to all electronic commerce, except as otherwise provided for in other Acts.

CHAPTER ELECTRONIC DOCUMENTS

Article 4 (Validity of Electronic Documents)

(1) An electronic document shall not be denied its validity only because it takes an electronic form, except as otherwise provided for in any other Acts. (2) Where any activity to record, report, deposit, keep or prepare, etc. under the provisions of Acts as provided for in the attached Table has been made by electronic documents, it shall be deemed that activities under the rele- vant Acts have been conducted. Article 5 (Custody of Electronic Documents)

(1) In cases where electronic documents meet the following requirements, the custody of such electronic documents may take the place of the custody of documents prescribed by the relevant Acts and subordinate statutes:

1. Details of electronic documents shall be offered for public perusal;

2. Electronic documents shall be preserved in the form when prepared, transmitted or received, or in the form reproducible same as such;

3. In cases where matters concerning an originator, an addressee and the time of transmission or receipt of electronic documents are included there- in, such parts shall be preserved.

(2) In cases where documents converted to a form that may be processed 26

397 (Supp. 45)

by the information processing system (hereinafter referred to as electronic FRAMEWORK ACT ON ELECTRONIC COMMERCE

398(Supp. 45)

documents ) from paper documents or other documents not prepared in the electronic form (hereinafter referred to as documents subject to conversion to electronic documents ) meet the following requirements, the custody of such electronic documents may take the place of the custody of documents prescribed by the relevant Act and subordinate statutes: Provided, That the same shall not apply to a case where special provisions exist in other Acts and subordinate statutes:

1. Details and form of electronic documents shall be identical to those of documents subject to conversion to electronic documents; and

2. Electronic documents shall meet each requirement set out in the subpara- graphs of paragraph (1).

(3) Requirements for identity of details and form of electronic documents and documents subject to conversion to electronic documents under para- graph (2), method of and procedure for preparation of electronic documents and other necessary matters shall be determined and publicly announced by the Minister of Knowledge Economy.

(4) In the application of paragraphs (1) and (2), parts only necessary for transmission or receipt may not be deemed to be electronic documents or documents converted to electronic documents.

Article 6 (Time and Place of Transmission or Receipt of Electronic Documents)

(1) An electronic document shall be deemed to have been transmitted at the time of input by the addressee or his agent into the information processing system capable of receiving the relevant electronic document (including documents converted to electronic documents; hereinafter the same shall apply).

(2) An electronic document shall be deemed to have been received when it falls under any of the following subparagraphs:

1. If the addressee has designated the information processing system to receive electronic documents, the time of their input in the designated information processing system: Provided, That if an electronic document is input in the information processing system other than the designated information processing system, referring to the time when the addressee outputs it; and

2. If the addressee has not designated the information processing system 26

399 (Supp. 45)

to receive electronic documents, the time when they have been input in the information processing system managed by the addressee. (3) An electronic document shall be deemed to have been transmitted or received, respectively, at the place of business of the originator or addressee. In such cases, where there are two or more places of business, it shall be deemed to have been transmitted or received at the location of the place of business where the principal management of such electronic document is made: Provided, That the originator or addressee has no place of business, such electronic document shall be deemed to have been transmitted or re- ceived at his/her habitual residence.

Article 7 (Case Where Originator is Deemed to have Sent Electronic Documents)

(1) Any manifestation of will which has been contained in an electronic docu- ment transmitted by means of computer programs constituted to be trans- mitted or received by the originator s agent, or automatically, and through other electronic devices, shall be deemed to have been transmitted by the originator.

(2) Any addressee of an electronic document may, where falling under any of the following subparagraphs, take actions by viewing that a manifestation of will contained in the electronic document is of the originator:

1. Where the addressee has followed the procedure agreed in advance with the originator in order to verify whether an electronic document was of the originator; and

2. Where the received electronic document has been transmitted by the person who has justifiable grounds believable by the addressee to have based on the will of the originator or his agent, in view of the relations with the originator or his agent.

(3) The provisions of paragraph (2) shall not apply to the case falling under any of the following subparagraphs:

1. Where the addressee has received a notice from the originator that the electronic document is not of his own, and where there exists a considerable time to take necessary measures accordingly; and

2. In the case of paragraph (2) 2, where the addressee has become aware that the electronic document is not of the originator, or where he/she might have become aware if he/she had paid a considerable attention thereto or followed the procedure agreed with the originator. FRAMEWORK ACT ON ELECTRONIC COMMERCE

400(Supp. 45)

Article 8 (Independency of Electronic Document Received) Any electronic document received shall be deemed to be respectively in- dependent per document: Provided, That the same shall not apply to the case where the addressee might have become aware that the same electronic document has been repeatedly transmitted if he/she had followed the verifying procedure agreed with the originator or paid a considerable atten- tion thereto.

Article 9 (Acknowledgement of Receipt)

(1) Where an originator has transmitted an electronic document on condition that the receipt thereof shall be acknowledged, such electronic document shall be deemed to have not been transmitted until the originator receives a notice of acknowledgment of receipt. In such cases, the provisions of Article 534 of the Civil Act shall not be applicable.

(2) Where the originator requests a notice of acknowledgment of receipt without clarifying such acknowledgment of receipt as a condition, if the originator has not received any notice of acknowledgment of receipt within a considerable period (where there is a period designated by the originator or the period agreed between the originator and the addressee, referring to such period), the originator may withdraw the transmission of such electronic document.

Article 10 (Alteration Pursuant to Agreement between Originator and Addressee)

Any originator and addressee may conclude an agreement different from the provisions of Articles 6 through 9, except as otherwise provided for in other Acts and subordinate statutes.

Article 11 (Matters Concerning Digital Signatures) Matters concerning digital signatures in electronic commerce shall be pre- scribed by the Digital Signature Act. CHAPTER ENSURING SECURITY IN

ELECTRONIC COMMERCE

AND PROTECTION OF

CONSUMERS

Article 12 (Protection of Personal Data)

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(1) The Government shall formulate and implement the policies to protect the private data of users of electronic commerce, in order to ensure the security and reliability of electronic commerce.

(2) Any business operator of electronic commerce shall observe the related regulations, such as the Act on Promotion of Information and Communications Network Utilization and Information Protection, in collect- ing, utilizing, providing and managing the private data of users of electronic commerce. Article 13 (Protection of Business Secrets)

(1) The Government shall formulate and implement the policies to protect the business secrets of users of electronic commerce, in order to ensure the security and reliability of electronic commerce.

(2) Any business operator of electronic commerce (including any person entrusted with operation of the information processing system; hereafter the same shall apply in this Article) shall devise measures to protect the business secrets of users of electronic commerce. (3) Any business operator of electronic commerce shall, without obtaining consent of users of electronic commerce, neither provide the business secrets of the relevant users to other persons nor divulge them. (4) Matters necessary for the scope of business secrets and protective meas- ures, etc. under paragraphs (1) through (3) shall be prescribed by Presidential Decree.

Article 14 (Use of Encoded Products)

(1) Any business operator of electronic commerce may use encoded products to guarantee the security and reliability of electronic commerce. (2) The Government may, if deemed necessary for national security, restrict the use of encoded products, and take necessary measures to gain access to the original text of encoded information or the encryption technology. Article 15 (Formulation or Implementation of Policies to Protect Con- sumers)

(1) The Government shall formulate and implement the policies to protect the basic rights and interests of consumers relevant to electronic commerce and to secure reliability of electronic commerce from the users, pursuant to the provisions of related Acts and subordinate statutes, such as the Framework Act on Consumers, and the Door to Door Sales, etc. Act. 26

(Supp. 45)399-2

(2) The Government may advise any business operator of electronic commerce and any business operators organization to voluntarily set regulations, so as to prevent any occurrence of unfair practices relevant to electronic commerce.

Article 16 (Prevention of Damages on Consumers and Relief Therefrom) (1) The Government shall formulate and execute the policies relevant to the provision of information on consumers and the expansion of education, etc., in order to prevent any occurrence of damage to consumers relevant to electronic commerce.

(2) The Government shall formulate and execute the necessary measures, so as to deal promptly and fairly with the dissatisfaction of, and damage to, the consumers relevant to electronic commerce. Article 17 (Matters to be Generally Observed by Business Operators of Electric Commerce)

Business operators of electric commerce shall observe matters falling under the following subparagraphs, in order to protect the consumers relevant to electronic commerce and to secure the safety and reliability of electronic commerce:

1. Provision of correct information on their trade names (including the name of representative, in the case of a corporation), on themselves, and on goods, services, terms and conditions of contract, etc.;

2. Provision and preservation of the standard contract, so as to make it easy for consumers to gain access or acknowledge;

3. Arrangement of procedures capable of cancelling or altering consumers orders by themselves;

4. Arrangement of procedures for easy withdrawal of an application, can- cellation or termination of a contract, exchange, return of goods and reimbursement of price paid, etc.;

5. Arrangement of procedures for dealing promptly and fairly with dissat- isfaction of and matters requested by consumers; and

6. Preservation of transaction records for a specific period, which are re- quired for the verification of transactions.

Article 18 (Authentication for Business Operators of Electric Commerce) The Government may support the authentication project for excellent busi- ness operators of electric commerce, in order to protect consumers and to FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-3(Supp. 45)

ensure the sound development of business operators of electric commerce. CHAPTER FORMULATION OF BASIC

POLICY ON ELECTRONIC

COMMERCE AND SYSTEMS

FOR ITS PROMOTION

Article 19 (Principles for Basic Policy on Electronic Commerce and Duties of Government)

The Government shall, for the promotion of electronic commerce, formulate and execute the basic policy on electronic commerce pursuant to the princi- ples, such as the promotion under private initiatives, minimization of regu- lations, security for the safety and reliability of electronic commerce, solid- ification of international cooperation.

Article 20 (Formulation and Execution of Promotional Programs for Electronic Commerce)

(1) The Government shall formulate and execute a program containing mat- ters falling under the following subparagraphs (hereinafter referred to as the promotional program for electronic commerce ) pursuant to the princi- ples for basic policy on electronic commerce under Article 19:

1. Basic direction of the promotional programs for electronic commerce;

2. Matters concerning international norms relevant to electronic com- merce;

3. Matters concerning the electronic payment system;

4. Matters concerning the protection of intellectual property rights;

5. Matters concerning the protection of the rights and interests of parties to electronic commerce;

6. Matters concerning ensuring the safety and reliability of electronic com- merce;

7. Matters concerning the development and standardization of technologies relevant to electronic commerce;

8. Matters concerning the creation of environment and the creation of 26

(Supp. 45)399-4

demands required for the promotion of electronic commerce;

9. Matters concerning international cooperation relevant to electronic commerce;

10. Matters concerning support for establishment of a foundation required for promotion of electronic commerce;

11. Matters concerning the establishment of high-speed information and communication networks and the activation of use thereof;

12. Other matters necessary to promote electronic commerce. (2) The heads of related central administrative agencies relevant to a promo- tional program for electronic commerce (hereinafter referred to as the related central administrative agency ) shall formulate sectional programs by jurisdiction which are related to matters falling under each subparagraph of paragraph (1), and shall take account of them in the establishment and implementation of major policies.

(3) The Minister of Knowledge Economy shall formulate the promotional program for electronic commerce by integration of the sectional programs of each central administrative agency concerned and decide upon it through deliberation of the National Informatization Strategy Committee under Article 9 of the Framework Act on National Informatization. Article 21 Deleted. Article 22 (Institution in Charge of Promoting Electronic Commerce) The Government may have the Institute for Information and Communication Industry Promotion (hereinafter referred to as the Institute ) under Article 26 of the Information and Communication Industry Promotion Act efficiently and systematically promote projects for the promotion of electronic commerce and to support the development of policies related to electronic commerce. [This Article Wholly Amended by Act No. 9708, May 22, 2009] CHAPTER PROMOTION OF ELEC-

FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-5(Supp. 45)

TRONIC COMMERCE AND

CREATION OF BASIS

Article 23 (Promotion, etc. of Use of Electronic Documents) (1) The Government shall formulate and implement necessary policies, such as the consolidation of various Acts and subordinate statutes, in order to promote the use of electronic documents. (2) The Minister of Knowledge Economy may determine a standard guideline for requisites, methods and procedures necessary for the keeping of elec- tronic documents for promoting utilization of electronic documents, and publicly announce it.

(3) The Minister of Knowledge Economy may grant authentication for facili- ties or equipment used for preparation of electronic documents in order to secure the reliability of electronic documents.

(4) In connection with authentication for facilities or equipment under para- graph (3), the objects of, standards for, procedures for and methods of man- agement of authentication and other necessary matters shall be prescribed by Ordinance of the Ministry of Knowledge Economy. (5) The Minister of Knowledge Economy shall investigate the actual con- ditions of operation and the status of post management for the facilities and equipment authenticated pursuant to paragraph (3), and if deemed unsuitable to the standards for authentication as a result of investigation, he/she may take necessary measures, such as corrective order, etc. (6) The Minister of Knowledge Economy may, when the facilities or equipment authenticated pursuant to paragraph (3) falls under any of the following subparagraphs, revoke authentication: Provided, That when falling under subparagraph 1, he/she shall revoke authentication: (Supp. 45)399-6

No. 8461, May 17, 2007; Act No. 8852, Feb. 29, 2008>

1. When authenticated by deceit or other unjust means;

2. When it is apprehended to impair the reliability of electronic documents because the facilities or equipment falls substantially short of the stand- ards for authentication;

3. When the corrective order under paragraph (5) has not been executed. Article 24 (Standardization of Electronic Commerce) (1) The Government shall promote the following matters in order to efficiently operate electronic commerce and to secure the interchangeability of related technologies:

1. Enactment, amendment, repeal and diffusion of the standards related to electronic commerce, such as electronic documents;

2. Research and development of domestic and overseas standards related to electronic commerce;

3. Other matters necessary for the standardization related to electronic commerce.

(2) Deleted.

(3) The Government may, if necessary for efficient promotion of matters falling under each subparagraph of paragraph (1), have the relevant in- stitutes and non-government organizations act on its behalf. In such cases, it may subsidize expenses incurred therein as prescribed by Presidential Decree.

Article 25 (Promotion of Technological Development for Electronic Commerce)

The Government shall promote matters falling under the following sub para- graphs in order to develop technology required for the promotion of electronic commerce and to enhance technological standards:

1. Matters concerning research on technological standards for electronic commerce, research and development of technology, and practical use of developed technologies;

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2. Matters concerning technological cooperation, technological guidance, and technology transfer related to electronic commerce;

3. Matters concerning the smooth distribution of technology information on electronic commerce and industry-science-research cooperation;

4. Other matters necessary for technological development related to elec- tronic commerce.

Article 26 (Fostering Professionals of Electronic Commerce) (1) The Government shall endeavor to foster professionals required for the promotion of electronic commerce.

(2) The Government may, in order to foster professionals under para graph (1), subsidize the whole or part of expenses required for execution of projects by research institutes, such as government-invested research institutions, etc. under the Act on the Establishment, Operation and Fosterage of Government-Invested Research Institutions, etc., schools, private educa- tional institutions, and other related agencies under the Higher Education Act. (3) Matters necessary for subsidization of institutions fostering pro- fessionals of electronic commerce under paragraph (2) shall be prescribed by Presidential Decree.

Article 27 (Promotion of Electronic Commerce in Public Sectors) The State agencies, local governments, public agencies under Article 4 of the Act on the Management of Public Agencies, and public organizations, etc. (hereinafter referred to as State agencies, etc. ) shall formulate and implement programs for the procurement of goods or services necessary for their operation, or the execution of their projects, through electronic commerce. Article 28 (Survey on Statistics of Electronic Commerce) (1) The Minister of Knowledge Economy may conduct a survey of the statistics of electronic commerce, etc. in order to effectively formulate and implement promotion policies on electronic commerce. In such cases, in preparing the 26

(Supp. 45)399-8

statistics of electronic commerce, the Statistics Act shall apply mutatis mutandis. (2) The Minister of Knowledge Economy may, if deemed necessary for a survey of the statistics of electronic commerce, etc. under paragraph (1), request the State agencies, etc., business operators, or a corporation or organization related to electronic commerce to submit data or to state opinions, etc.

(3) The State agencies, etc., business operators, or corporations or organ- izations related to electronic commerce in receipt of a request for submission of data, etc. under paragraph (2), shall comply with such request. (4) Matters necessary for conduction of a survey of the statistics of electronic commerce, etc. shall be prescribed by Presidential Decree. Article 29 (Internationalization of Electronic Commerce) (1) The Government may, in order to promote the international cooperation on electronic commerce, render support to such projects as the exchange of information, technology or human resources for electronic commerce, joint survey, research and technological cooperation and international standardization, etc.

(2) The Government shall endeavor to actively participate in discussions related to electronic commerce at international organizations and to respond thereto, and also shall support advancement into overseas markets by busi- ness operators of electronic commerce.

Article 30 (Electronic Commerce Support Center)

(1) The Government shall devise and promote the policies required for the FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-9(Supp. 45)

promotion of electronic commerce by small and medium enterprises. (2) The Minister of Knowledge Economy may, in order to promote electronic commerce by small and medium enterprises, designate an institution which supports the education and training, technological guidance, management counselling, information provision, etc. related to electronic commerce as the Electronic Commerce Support Center (hereinafter referred to as the ECSC ).

(3) Matters necessary for the standards for designation of the ECSC, report on actual records of project execution, and subsidizing expenses, etc. shall be prescribed by Presidential Decree. Article 30-2 (Revocation of Designation of ECSC)

The Minister of Knowledge Economy may, if the ECSC falls under any of the following subparagraphs, revoke such designation: Provided, That if it falls under subparagraph 1, he/she shall revoke such designation:

1. In cases where it has been designated as the ECSC by deceitful or other unjust means;

2. In cases where it has failed to show business records for not less than two consecutive years without any justifiable reasons; and

3. In cases where it has become unsuitable to the standards for designation under Article 30 (3).

[This Article Newly Inserted by Act No. 8932, Mar. 21, 2008] Article 31 (Support for Promotion of Electronic Commerce) (1) The State or a local government may, in order to promote electronic com- merce, grant the preferential taxation support, such as reduction or exemp- tion of taxes, and financial support and other necessary administrative support under the conditions as prescribed in the tax-related Acts, such as the Restriction of Special Taxation Act and the Local Tax Act. (2) The Government may subsidize the whole or part of project expenses within the limit of its budget in cases where any juristic person or organization related to electronic commerce performs the project as set forth in the promo- tional program for electronic commerce.

CHAPTER -2 AUTHORIZED ELECTRONIC

DOCUMENTS DEPOSITORY

Article 31-2 (Designation of Authorized Electronic Documents Depository) 26

(Supp. 45)399-10

(1) The Minister of Knowledge Economy may designate an entity having speciality for the custody, etc. of electronic documents as authorized elec- tronic documents depository in order to secure the safety and accuracy of keeping, etc. of electronic documents, and make them keep, etc. electronic documents. (2) An entity qualified for designation as an authorized electronic documents depository shall be limited to a juristic person. (3) An entity intending to obtain designation as a authorized electronic documents depository shall apply for designation to the Minister of Knowledge Economy by securing human resources, technology, financial capability and other facilities and equipment, etc. which are necessary for the keeping, etc. of electronic documents.

(4) Matters necessary for the criteria, methods and procedures for the designation of human resources, technology, financial capability and other facilities and equipment, etc. of an authorized electronic documents depos- itory under the provisions of paragraphs (1) and (3), shall be prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-3 (Reasons of Disqualification for Authorized Electronic Documents Depository)

A juristic person falling under any of the following subparagraphs shall not be designated as an authorized electronic documents depository:

1. A juristic person employing any persons falling under any of the following items from among its executives or staff having the direct custody, etc. of electronic documents who are prescribed by Presidential Decree (hereinafter referred to as the executive, etc. ): (a)An incompetent or a quasi-incompetent;

(b)A person who was declared bankrupt and has not yet been reinstated; (c) A person for whom two years have not elapsed from the day on which his sentence execution was terminated (including the case where it is deemed to have been terminated) or exempted, after he/she was sentenced to imprisonment without prison labor or heavier punishment;

(d)A person who is under a grace period after having been sentenced to suspension of the execution of imprisonment without prison labor or heavier punishment;

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(e) A person whose qualification is forfeited or suspended by a decision of a court or by other Acts; and

(f) A person who was an executive, etc. at the time of cancellation of the juristic person whose designation was cancelled under the provisions of Article 31-5 (1) (limited to the person for whom two years have not elapsed from the date of cancellation); and

2. A juristic person for which two years have not elapsed after the desig- nation was cancelled under Article 31-5 (1).

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-4 (Corrective Orders)

When an authorized electronic documents depository falls under any of the following subparagraphs, the Minister of Knowledge Economy may issue an order to correct it with a period fixed within six months:

1. When it has become to unsuitable for criteria for designation of an authorized electronic documents depository under Article 31-2 (4);

2. When an executive, etc. has falls under any item of subparagraph 1 of Article 31-3;

3. When it has failed to make report on the regulations on business of the custody, etc. of electronic documents in violation of the provisions of Article 31-8 (1);

4. When tit has failed to make report for modification on the regulations on business of the custody, etc. of electronic documents in violation of the provisions of Article 31-8 (2);

5. When it has refused to provide services of the custody, etc. of electronic documents in violation of the provisions of Article 31-9 (1);

6. When it has unlawfully discriminated a user in violation of the provisions of Article 31-9 (2);

7. When it has failed to take the necessary measures so as to make the contents of electronic documents in its custody undamaged or unchanged in violation of the provisions of Article 31-9 (3);

8. When the methods or procedures for performing the affairs of an au- thorized electronic documents depository are inadequate, and therefore there are concerns over impeding the safety of custody, transmission or receipt, or accuracy of verification of electronic documents; and

9. When it has failed to take out an insurance under Article 31-16 (2). 26

(Supp. 45)399-12

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-5 (Cancellation of Designation and Surcharge) (1) When an entity designated as an authorized electronic documents depos- itory under the provisions of Article 31-2 falls under any of the following subparagraphs, the Minister of Knowledge Economy may cancel the relevant designation as prescribed by Ordinance of the Ministry of Knowledge Economy, or order suspension of the whole or part of the relevant business by setting the period of less than one year: Provided, That he/she shall cancel the relevant designation when it falls under subparagraph 1 or 2:

1. When it has been designated under the provisions of Article 31-2 (1) by means of falsity and other unlawful means;

2. When it has continuously performed its business during the period of business suspension under the main sentence of paragraph (1);

3. When it has failed to open business for over one year from the date of receiving a designation under Article 31-2 (1), or failed to perform such business as the custody of electronic documents, continuously for over one year after opening its business; and

4. When it has failed to execute a corrective order under Article 31-4 within the prescribed period.

(2) Where the Minister of Knowledge Economy takes measures for business suspension for the case falling under paragraph (1) 3 and 4 and he/she admits that the relevant business suspension may cause serious incon- venience to the users of an authorized electronic documents depository, or impeding the public interests, he/she may impose the surcharge not exceeding 100 million won in lieu of business suspension.

(3) The amount of surcharge following the types or degrees, etc. of violation to be imposed the surcharge under the provisions of paragraph (2), the methods for computing the surcharge and other necessary matters shall be prescribed by Presidential Decree.

(4) When any person liable for paying the surcharge under the provisions of paragraph (2) has failed to pay it not later than the deadline for payment, the Minister of Knowledge Economy shall collect it by referring to the practices of dispositions on default of national taxes.

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-13(Supp. 45)

Article 31-6 (Effect of Vicarious Execution of Keeping of Electronic Documents)

Where an authorized electronic documents depository has the custody of electronic documents, it shall be deemed to have the custody of electronic documents under the provisions of Article 5 (1) or (2).

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-7 (Presumption, etc. of Details of Electronic Documents) (1) Electronic documents in the custody of an authorized electronic docu- ments depository shall be presumed that the relevant details have not been modified during the period of custody.

(2) Where an authorized electronic documents depository has issued a certificate for the matters on the fact of custody, originator, addressee and the date and time of transmission and receipt, etc. under the methods and procedures as prescribed by Presidential Decree, the matters stated on the certificate shall be presumed to be true.

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-8 (Report, etc. on Regulations on Business of Keeping, etc. of Electronic Documents)

(1) Each authorized electronic documents depository shall prepare regu- lations on business of the custody, etc. of electronic documents concerning the custody, etc. of electronic documents (hereinafter referred to as regulations on business ) before opening its business as prescribed by Ordinance of the Ministry of Knowledge Economy, and report to the Minister of Knowledge Economy. In such cases, the regulations on business shall contain the following matters:

1. Types of business;

2. Performing methods and procedures of business;

3. Utilization conditions and fees for services of the custody, etc. of elec- tronic documents; and

4. Other matters necessary for performing business prescribed by Ordinance of the Ministry of Knowledge Economy.

(2) Where an authorized electronic documents depository intends to alter the matters reported under the provisions of paragraph (1), it shall report to the Minister of Knowledge Economy as prescribed by Ordinance of the Ministry of Knowledge Economy. (3) Where the Minister of Knowledge Economy has admitted that the con- 26

(Supp. 45)399-14

tents of regulations on business reported under paragraph (1) may cause impediments to securing safety and accuracy of the business of the custody, etc. of electronic documents or impeding the interests of persons using the services of the custody, etc. of electronic documents (hereinafter referred to as users ), he/she may order the relevant authorized electronic docu- ments depository to alter regulations on business by setting a considerable period.

(4) When an authorized electronic documents depository has changed facili- ties or equipment used for the custody of electronic documents, etc., it shall report to the Minister of Knowledge Economy as prescribed by Ordinance of the Ministry of Knowledge Economy. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-9 (Code of Practice)

(1) No authorized electronic documents depository may refuse to provide services such as custody, etc. of electronic documents without any justifiable reasons.

(2) No authorized electronic documents depository may unlawfully discrim- inate its users.

(3) Each authorized electronic documents depository shall take necessary measures prescribed by Presidential Decree lest the contents of the elec- tronic documents in their custody be damaged or altered. (4) No authorized electronic documents depository may offer others or open to the public, etc. the electronic documents kept in the relevant in- formation processing systems and other related information without follow- ing the lawful procedures or without any consent of the originator, addressee and relevant users of electronic documents.

(5) Where an authorized electronic documents depository needs the digital signature in order to have the custody, etc. of electronic documents, they shall obtain the authorized digital signature under the provisions of subpara- graph 3 of Article 2 of the Digital Signature Act from the authorized authenti- cation agency under the provisions of Article 4 of the same Act. (6) Each authorized electronic documents depository shall maintain in- dependence in relations with users in order to have the custody of electronic documents, etc. safely and reliably. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-10 (Regular Check, etc.)

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(1) The Minister of Knowledge Economy may have the KIEC regularly inspect the safety of facilities or equipment possessed by an authorized electronic documents depository. (2) When report for modification has been made under Article 31-8 (4) or report for succession has been made under Article 31-14 (3), the Minister of Knowledge Economy may have the KIEC check the safety of the relevant facilities or equipment. (3) Basis, time, objects of and procedure for inspection under paragraphs (1) and (2) and other necessary matters shall be prescribed by Ordinance of the Ministry of Knowledge Economy. [This Article Newly Inserted by Act No. 8461, May 17, 2007] Article 31-11 (Report and Inspection, etc.)

(1) When the Minister of Knowledge Economy deems it necessary, he/she may have an authorized electronic documents depository submit the relevant data as prescribed by Presidential Decree, or report in writing or by electronic documents, and have related public officials have access to an office, a place of business and other related place of an authorized electronic docu- ments depository, and inspect facilities, equipment, documents relating to the keeping, etc. of electronic documents and other related articles.

(2) A public official engaged in the inspection under the provisions of paragraph (1) shall carry an identification indicating his authority, and present it to the interested parties.

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-12 (Security of Related Information, Such as Electronic Documents, etc.)

(1) No person shall make a forgery or alteration of the electronic documents and other related information kept in an authorized electronic documents depository, or make use of the forged or altered information. (2) No person shall have the certificates under the provisions of Article 31-7 (2) issued in falsity by means of inputting, etc. the false information or unlawful orders in the information processing systems of an authorized electronic documents depository.

(3) No person shall make the electronic documents and other related in- formation kept in an authorized electronic documents depository demolished or damaged, or have its secrets infringed.

(4) A person who is or was an executive or an employee of an authorized 26

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electronic documents depository shall not divulge the electronic documents coming to his/her knowledge on duties and the contents of other related information, or not have himself/herself or the third parties utilize them. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-13 (Protection of Users Information)

(1) Each authorized electronic documents depository shall protect the pri- vate information in relation to the custody, etc. of electronic documents. (2) With regard to the protection of private information under the provisions of paragraph (1), the provisions concerning the private information from among the provisions of Articles 22 through 32, 36 (1) and 54, 62, 66 and 67 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. shall apply mutatis mutandis. In such cases, the provider of information communications services shall be considered as the authorized electronic documents depository , the provider, etc. of information communications services as the authorized electronic documents depository , the information communications serv- ices as the services of the custody of electronic documents, etc. , the use stipulation on information communications service as the regulations on business of the custody of electronic documents, etc. , Ordinance of the Ministry of Public Administration and Security as Ordinance of the Ministry of Knowledge Economy and the Minister of Public Administration and Security as the Minister of Knowledge Economy .

[This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-14 (Transfer and Taking over, etc. of Business of Authorized Electronic Documents Depository)

(1) Any authorized electronic documents depository may transfer the whole or part of its business to other authorized electronic documents depository or merge with other authorized electronic documents depository. In such cases, they shall notify users of such transfer or merger not later than 60 days prior to the intended date for transfer or merger as prescribed by Ordinance of the Ministry of Knowledge Economy.

(2) Any authorized electronic documents depository which has transferred its business pursuant to paragraph (1) or any authorized electronic docu- ments depository which continues to exist or is established after merger FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-17(Supp. 45)

shall succeed to the status of the previous authorized electronic documents depository.

(3) A person who has succeeded to the status of the previous authorized electronic documents depository pursuant to paragraph (2) shall make report to the Minister of Knowledge Economy as prescribed by Ordinance of the Ministry of Knowledge Economy. [This Article Newly Inserted by Act No. 8461, May 17, 2007] Article 31-15 (Discontinuance of Business of Custody of Electronic Documents, etc.)

(1) Each authorized electronic documents depository shall, when it intends to discontinue business of the custody of electronic documents, etc., notify users of such discontinuance and make report of such fact to the Minister of Knowledge Economy as prescribed by Ordinance of the Ministry of Knowledge Economy, not later than 60 days prior to the intended date of such discontinuance. (2) Any authorized electronic documents depository which have made report pursuant to paragraph (1) shall transfer the electronic documents in its custody and other records concerning the custody of electronic documents, etc. (hereinafter referred to the documents in custody, etc. ) to another authorized electronic documents depository: Provided, That in cases where it can not transfer the documents in custody due to unavoidable reasons, such as another authorized electronic documents depository refusal to take over, etc., they shall report such fact to the Minister of Knowledge Economy without delay. (3) In cases where the Minister of Knowledge Economy deems it necessary to take emergency measures in order to ensure the continuity and safety of business of the custody of electronic documents, etc. as a case falling under any of the following subparagraphs, he/she may have the KIEC take over the relevant electronic documents, etc. in custody or may give orders to take other necessary measures:

1. In cases where he/she has been reported under proviso to paragraph (2);

2. In cases where he/she has revoked designation of an authorized electronic documents depository pursuant to Article 31-5; and

3. In cases where an unavoidable reason has arisen that an authorized electronic documents depository is unable to conduct the business of the custody of electronic documents, etc.

(4) Matters necessary for report of discontinuance of business, and transfer 26

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and taking over of electronic documents, etc. in custody under parag raphs (1) through (3) shall be prescribed by Ordinance of the Ministry of Knowledge Economy. [This Article Newly Inserted by Act No. 8461, May 17, 2007] Article 31-16 (Responsibility for Indemnity)

(1) When an authorized electronic documents depository has caused any damage to users by any activity in violation of the provisions of this Act in connection with business of the custody, etc. of electronic documents, it shall indemnify for the relevant damage: Provided, That the same shall not apply to a case where an authorized electronic documents depository has proved that there is no intention or negligence on its part. (2) Each authorized electronic documents depository shall take out an in- surance as prescribed by Presidential Decree in order to indemnify for dam- ages under paragraph (1). [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 31-17 (Fees, etc.)

Each authorized electronic documents depository may impose necessary charges, such as fees, to applicants for issuance of certificates or its users. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] CHAPTER ELECTRONIC COMMERCE

MEDIATION COMMITTEE

Article 32 (Establishment and Composition of Electronic Commerce Mediation Committee)

(1) The Electronic Commerce Mediation Committee (hereafter in this Chapter, referred to as the Committee ) shall be established in order to mediate the disputes concerning electronic commerce.

(2) The Committee shall be composed of not less than 15 but not more than 50 members including one Chairperson.

(3) The members shall be appointed or commissioned by the Minister of Knowledge Economy from among persons falling under any of the following subparagraphs, and the Chairperson shall be elected from among and by its members:

1. Persons who are or have been in the post higher than associate professors FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-19(Supp. 45)

or equivalent thereto in universities or officially-recognized research institutions, and who have majored in the field related to electronic com- merce;

2. Persons who are or have been in the post higher than public officials of Grade (including public officials in general service belonging to the Senior Civil Service) or equivalent thereto in public agencies, who have much experience in the duties of electronic commerce;

3. Persons eligible for judges, public prosecutors, or lawyers;

4. Persons recommended by nonprofit non-governmental organizations un- der Article 2 of the Assistance for Nonprofit Non-Governmental Organizations Act; and

5. Other persons who have much knowledge and experience in electronic commerce and mediation of disputes.

(4) The members shall be part-time, and their term of office shall be two years, and the consecutive appointment may be permitted. (5) A secretariat shall be placed in the KIEC under Article 22 in order to assist the duties of the Committee.

(6) Matters necessary for qualification and guarantee of status of the mem- bers, any exclusion, challenge or avert, etc. of the members, shall be pre- scribed by Presidential Decree.

Article 33 (Mediation of Disputes)

(1) Any person who intends to obtain relief from damage and mediation of disputes related to electronic commerce may apply for mediation of disputes to the Committee.

(2) The Committee shall prepare a plan for mediation within 45 days from the date of receiving an application for mediation of disputes under paragraph (1), and advise the parties to the disputes thereof: Provided, That where it intends to extend such time limit due to inevitable reasons, it shall notify the parties of the disputes thereof by clarifying the reasons therefor and the time limit.

(3) The Committee may, if deemed necessary for mediation of disputes under paragraph (2), have it referred to the mediation division composed of not more than 3 members, for its mediation.

Article 34 (Request for Data, etc.)

(1) The Committee may require the parties to the disputes or the witness to provide the data required for mediation of disputes. In such cases, the 26

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relevant parties to the disputes shall comply with it unless there exist any justifiable reasons.

(2) The Committee may, if deemed necessary, have the parties to the disputes or the witness attend the Committee and consider their opinions. Article 35 (Establishment of Mediation)

(1) Mediation shall be established in the cases falling under any of the follow- ing subparagraphs:

1. Where the parties to the disputes have consented to the advice of media- tion under Article 33 (2); and

2. Where the parties to the disputes have submitted their own agreement of mediation to the Committee.

(2) The Committee shall, in the case of paragraph (1), prepare a protocol of mediation, and the parties to the disputes shall sign and seal thereon. (3) The protocol of mediation under paragraph (2) shall have the same validity as the agreement between the parties to the disputes. Article 36 (Non-Establishment of Mediation)

The Committee shall, where falling under any of the following subpara- graphs, notify the parties of the disputes of the non-establishment of media- tion:

1. Where an application for mediation is withdrawn, or any one of the parties to the disputes rejects mediation of disputes;

2. Where the parties to the disputes have refused the Committee s draft for mediation;

3. Where any lawsuit is filed to the court on the case of relevant mediation of disputes; and

4. Where it is deemed inappropriate to be mediated by the Committee in view of the nature of a case.

Article 37 (Expenses for Mediation, etc.)

(1) The Committee may charge the applicant for mediation of disputes the expenses for mediation as prescribed by Presidential Decree. (2) The Government may contribute or subsidize the expenses required for the operation of the Committee within its budget. Article 38 (Operation of Committee, etc.)

Matters necessary for the operation of the Committee and the mediation division and the procedures for dispute mediation, etc. other than those 26

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as provided for in Articles 33 through 37, shall be prescribed by Presidential Decree.

CHAPTER SUPPLEMENTARY PROVISIONS

Article 39 (Delegation or Entrustment of Authority) The authority of the Minister of Knowledge Economy under this Act shall be partially delegated to the head of the agency under his/her control or the head of a local government, or entrusted to the head of the related central administrative agency, as prescribed by Presidential Decree.

Article 40 (Reciprocity)

This Act shall apply to a foreigner or foreign corporation, as well: Provided, That with respect to a foreigner or foreign corporation of the state, which fails to make protection corresponding to this Act for the national or corpo- ration of the Republic of Korea, any protection under this Act or the treaties acceded or concluded by the Republic of Korea may be restricted commen- surately therewith.

Article 41 (Hearing)

Where falling under any of the following subparagraphs, the Minister of Knowledge Economy shall hold a hearing:

1. Where he/she intends to revoke the designation of a support center pursuant to Article 30-2; and

2. Where he/she intends to revoke the designation of an authorized elec- tronic documents depository under the provisions of Article 31-5 (1). [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 42 (Legal Fiction of Public Officials in Applying Penal Provisions) In applying Articles 129 through 132 of the Criminal Act to the duties of executives or employees of an authorized electronic documents depos- itory, they shall be considered as public officials. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] CHAPTER PENAL PROVISIONS

Article 43 (Penal Provisions)

(1) A person falling under any of the following subparagraphs shall be punished by imprisonment of not more than ten years or a fine of not FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-23(Supp. 45)

more than 100 million won:

1. A person who has forged or altered the electronic documents and other related information kept in an authorized electronic documents depository or has exercised the forged or altered information in violation of the provisions of Article 31-12 (1); and

2. A person who has made the certificates under Article 31-7 (2) issued in falsity by means of inputting the false information or unlawful orders in the information processing systems of an authorized electronic docu- ments depository in violation of the provisions of Article 31-12 (2). (2) The attempted criminals of paragraph (1) shall be punished. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 44 (Penal Provisions)

A person falling under any of the following subparagraphs shall be punished by imprisonment of not more than five years or a fine of not more than 50 million won:

1. A person who has made the electronic documents and other related information kept in an authorized electronic documents depository de- molished or damaged, or have its secrets infringed in violation of the provisions of Article 31-12 (3); and

2. A person who is or was an executive or employee of an authorized electronic documents depository and who has divulged the details of electronic documents coming to his/her knowledge on duty and other related information, or has had himself/herself or third parties utilize them in violation of the provisions of Article 31-12 (4). [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] Article 45 (Joint Penal Provisions)

If the representative of a juristic person, or an agent, an employee or any other employed person of the juristic person or an individual has committed an offense under Article 43 or 44 in connection with the affairs of the juristic person or individual, not only shall a relevant offender be punished accordingly, but the juristic person or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply in cases where the juristic person or individual has not neglected to give reasonable attention to and to supervise the relevant affairs to prevent such an offense.

[This Article Wholly Amended by Act No. 9246, Dec. 26, 2008] Article 46 (Fine for Negligence)

(1) Any authorized electronic documents depository which has opened 26

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electronic documents and other related information to the public in violation of the provisions of Article 31-9 (4) shall be punished by a fine for negligence not exceeding 30 million won.

(2) A person falling under any of the following subparagraphs shall be punished by a fine for negligence not exceeding ten million won:

1. A person who has failed to report on regulations on business in violation of the provisions of Article 31-8 (1);

2. A person who has failed to make a modified report on the regulations on business in violation of the provisions of Article 31-8 (2);

3. A person who has failed to execute the orders for alteration of the regulations on business in violation of the provisions of Article 31-8 (3);

3-2. A person who has failed to make report for modification of facilities or equipment in violation of Article 31-8 (4);

4. A person who has refused to provide services of the custody, etc. of elec- tronic documents without any lawful reasons in violation of the provisions of Article 31-9 (1);

5. A person who has unlawfully discriminated the users in violation of the provisions of Article 31-9 (2);

6. A person who has failed to take necessary measures lest the details of electronic documents kept in an authorized electronic documents depos- itory be damaged or modified in violation of the provisions of Article 31-9 (3);

6-2. A person who has refused or hindered a regular check under Article 31-10 (1);

7. A person who has failed to submit the data or make a report under the provisions of Article 31-11 (1), a person who has submitted the false data or made a false report, or a person who has refused, obstructed or avoided any access or inspection of the related public officials;

8. A person who has failed to notify users of transfer or merger of business of the custody of electronic documents, etc. in violation of the latter part of Article 31-14 (1);

9. A person who has failed to report the fact of succession to the status of an authorized electronic documents depository in violation of Article 31-14 (3);

10. A person who has failed to notify users of discontinuance of business FRAMEWORK ACT ON ELECTRONIC COMMERCE

399-25(Supp. 45)

of the custody of electronic documents, etc. or has failed to report such fact to the Minister of Knowledge Economy in violation of Article 31-15 (1);

11. A person who has failed to transfer electronic documents, etc. in custody or has failed to report in violation of Article 31-15 (2);

12. A person who has failed to take out an insurance in violation of Article 31-16 (2).

(3) A fine for negligence pursuant to paragraphs (1) and (2) shall be imposed and collected by the Minister of Knowledge Economy as prescribed by Presidential Decree.

(4) through (6) Deleted. [This Article Newly Inserted by Act No. 7440, Mar. 31, 2005] ADDENDA

(1) (Enforcement Date) This Act shall enter into force on July 1, 2002. (2) (Transitional Measures for Designation of Electronic Commerce Support Center) The Electronic Commerce Support Center which has been designated under the former provisions at the time of enforcement of this Act, shall be deemed to be the Electronic Commerce Support Center under Article 30. (3) (Relations with Other Acts and Subordinate Statutes) In cases where the former Framework Act on Electronic Commerce or its provisions are cited in other Acts and subordinate statutes at the time of enforcement of this Act, if there exist any corresponding provisions in this Act, this Act or the corre- sponding provisions in this Act shall be deemed to have been cited. ADDENDA

(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.

(2) (Transitional Measures for Council on Electronic Commerce Policy) The Council on Electronic Commerce Policy established and composed under the former provisions at the time of enforcement of this Act shall be deemed to be the Committee on Electronic Commerce Policy established and composed under the amended provisions of Article 21.

(3) (Transitional Measures for Korea Electronic Documents Exchange Committee) The Korea Electronic Documents Exchange Committee estab- lished and composed under the former provisions at the time of enforcement 26

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of this Act shall be deemed to be the sectional committee on standards of electronic documents of the Committee on Electronic Commerce Policy established and composed under the amended provisions of Article 21 (5). ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2006.

Articles 2 through 6 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 13 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. Articles 2 through 9 Omitted.

ADDENDUM

This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 5 (2) through (4) shall enter into force on the date of its promulgation.

ADDENDA

FRAMEWORK ACT ON ELECTRONIC COMMERCE

400(Supp. 45)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. Articles 2 through 5 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. Articles 2 through 7 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. Articles 2 through 6 Omitted.

ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDUM

This Act shall enter into force six months after the date of its promulgation. ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDA

Article 1 (Enforcement Date)

FRAMEWORK ACT ON ELECTRONIC COMMERCE

400(Supp. 45)

This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 12 Omitted.


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