Online site mall commission recovery method related to the usury law legal review.

Law firm Veat received a request for a legal review regarding whether the fee collection method of a global online purchase site mall (hereinafter referred to as “customer”) constitutes a loan under the Loan Business Act.

The customer requested a legal review from Law firm Veat regarding whether they can proceed with a post-collection method of paying the settlement fee on the amount paid by the customer when purchasing the product, after a certain period of time. .

The Law firm Veat e-commerce team carefully analyzed relevant provisions of the “Civil Act” and the “Act on Registration of Loan Business and Protection of Financial Users” (hereinafter referred to as “Loan Business Act”), and conducted a legal review considering the characteristics of the relevant transaction structure and provided detailed guidance on the business model.

Necessity of Prior Legal Review for Online Mall’s PG Service

The Loan Business Act was established to promote the sound development by enacting necessary matters concerning the registration and supervision of loan businesses and loan brokerage businesses, and regulating illegal debt collection, interest rates, and other related matters of loan businesses and financial institutions.

A loan business means a person who engages in the business of loaning money using methods such as bill discounting, pledged collateral, and other similar methods, or is a loan business or financial institution and receives and collects debts under a loan contract.

In the Loan Business Act, “engaging in a business” means continuously and repeatedly performing the same act, and whether it applies is determined by comprehensively considering various circumstances such as the repetitiveness, commerciality, purpose, scale, number of times, and period of the act, based on social norms (Supreme Court, March 29, 2012, Judgment No. 2012do 4390).

Therefore, it is advisable for the customer to receive a business legal review from an e-commerce attorney who has handled various cases involving complex financial transaction structures such as PG services, regarding whether the customer's business model meets the legal requirements of the Loan Business Act and related laws, and whether there are any potential legal risks.

The Law firm Veat e-commerce team recognizes the importance of relevant laws and regulations such as the “Act on Consumer Protection in Electronic Commerce,” “Civil Act,” and “Act on Protection of Financial Consumers,” and provides customers with detailed legal advice to meet the legal requirements stipulated in each law.

E-commerce is a rapidly growing field in modern society, and relevant laws and regulations are constantly being updated. Law firm Veat keeps abreast of these changes and continually updates the latest legal information, and helps to minimize the legal risks inherent in the customer's business.

If you require legal advice on electronic payment processing or regular legal advice, please contact Law firm Veat.

Thank you.

Sincerely,

Law firm Veat