YOON&YANG

On December 30, 2025, the plenary session of the National Assembly passed amendments to the Act on Consumer Protection in Electronic Commerce (the “E-Commerce Act”) to strengthen consumer protection in e-commerce. These amendments are intended to respond to changes in the digital environment by addressing regulatory gaps under the current regime and enhancing consumer rights and interests. The amendments include, among other things: (i) establishment of a new regulatory framework for consumer-to-consumer (C2C) transaction platforms; (ii) mandatory designation of a domestic agent for qualifying overseas businesses; (iii) relaxed requirements and expanded enforcement options for temporary suspension orders; (iv) enhanced transparency requirements for the operation of product reviews; (v) introduction of a consent decree system; and (vi) increases and additions to administrative fines. Given the significant strengthening of enforcement tools and their practical effectiveness, it would be prudent for businesses engaged in e-commerce and mail order sales, as well as platform operators, to conduct a proactive compliance review.

1. Background

2. Overview of Amendments

3. Implications

1. Background

As C2C transaction platforms continue to grow rapidly, disputes between individual sellers and consumers have increased. At the same time, cross-border direct purchases have expanded, and consumer product reviews have become increasingly influential in purchasing decisions, reflecting a fast-changing digital commerce environment. In response, the Korea Fair Trade Commission (the “KFTC”) pursued these amendments to strengthen consumer protection by addressing regulatory gaps under the existing E-Commerce Act and reorganizing the accountability framework applicable to platforms and overseas businesses (such amendments to the E-Commerce Act, the “Amendments”).

2. Overview of Amendments 
 

A. Establishment of a Regulatory Framework for C2C Platforms

The Amendments expressly recognizes purchasers in C2C transactions as consumers and characterizes C2C transactions as covered online transactions while classifying the platform as an online intermediary, thereby clarifying the legal characterization of a transaction structure that had previously been subject to debate. In addition, the Amendments are expected to strengthen the protection of individual sellers’ personal information by narrowing the scope of information that platforms must collect from individual sellers.

Further, where a dispute arises on a platform, the Amendments introduce a new obligation for platforms to cooperate in dispute resolution by providing an individual seller’s identification information and transaction records when requested by a court or a consumer damage dispute resolution body. Platforms will also be required to (i) recommend the use of a payment escrow service for C2C transactions and (ii) clearly display whether a seller is an individual seller or a business entity.

Meanwhile, the existing obligation requiring platforms to provide a method by which a counterparty can access an individual seller’s personal information has been deleted due to privacy concerns.

B. Mandatory Designation of a Domestic Agent for Overseas Businesses

Reflecting the increased use of overseas platforms, overseas businesses that satisfy certain thresholds (sales revenue, user count) will be required to designate a domestic agent in writing. In particular, where an overseas business has an entity incorporated in Korea or an entity in Korea over which the overseas business exercises dominant influence, the Amendments require the designation of such Korean entity as the overseas business’s domestic agent. Upon designating a domestic agent, the overseas business must submit to the KFTC and disclose on its website the domestic agent’s name, address, telephone number, and email address. The designated domestic agent must perform, on behalf of the overseas business, obligations such as taking measures to address consumer complaints and disputes and submitting materials in connection with KFTC investigations.

C. Enhancing the Effectiveness of Temporary Suspension Orders

To promptly prevent the spread of consumer harm, the requirements and methods for issuing temporary suspension orders will be made more practical. Under the prior regime, a temporary suspension order could be issued only if a clear legal violation existed. Under the Amendments, it will be sufficient to issue the order “if it can be ascertained” that a legal violation is clear. In addition, the requirement that consumers must have already suffered property damage has been deleted. Instead, a temporary suspension order may be issued where there is a risk that irreparable harm will spread to a substantial number of consumers and there is an urgent need to prevent such harm.

Further, under the prior regime, only a temporary suspension of all or part of a business was available, limiting flexible enforcement. Under the Amendments the KFTC may, depending on the circumstances, choose to order among (i) suspension of the relevant conduct and (ii) temporary suspension of all or part of the business. This is intended to prevent the spread of harm and minimize consumer inconvenience resulting from business shutdowns (e.g., interruption of refunds).

D. Mandatory Disclosures Regarding Collection and Processing of Product Reviews

To prevent deceptive practices such as manipulation or deletion of consumer product reviews online, where a business engaging in e-commerce or a mail order distributor posts consumer product reviews regarding goods traded through an online mall, the Amendments require the business to disclose information regarding the collection and processing of such reviews, including the posting period, ratings, deletion criteria, and objection procedures in the event of deletion.

E. Introduction of Consent Decree System

Deceptive consumer practices can cause widespread harm, yet individual consumers often choose not to litigate due to the burden of filing a lawsuit. In response, the Amendments introduce a consent decree system under the E-Commerce Act, where a business subject to a KFTC investigation or review may propose a voluntary corrective measure and apply for a consent decree. The KFTC may issue a consent decree after considering factors such as balance with the expected corrective measures, restoration of sound order in trade, and the adequacy of protection for consumers and other businesses.

F. Increase of Administrative Fines and Expansion of the Scope of Liability

Reflecting criticism that existing levels of administrative fines have been too low relative to the increasing scale of online transactions thereby lacking sufficient deterrent effect, sanctions in the E-Commerce Act have been strengthened by the Amendments. The Amendments double the maximum administrative fine for deceptive consumer inducement and dark patterns, and add refund obligation violations and failures to comply with platform obligations to categories subject to administrative fines.

3. Implications

The Amendments go beyond mere codification, as they simultaneously (i) specify obligations in key areas such as platforms, overseas businesses, and product review operations and (ii) strengthen the KFTC’s enforcement tools. Accordingly, the practical impact on business operations is expected to be significant, and companies should prioritize their review of the following in response:

First, for C2C platform operators, enrollment and transaction processes and frameworks for personal information handling should be updated to reflect the reduced scope of collection relating to individual seller information. In addition, companies should establish internal procedures enabling the provision of identifying information and transaction records in response to requests from courts or dispute resolution bodies. Platforms should also update UI/UX and internal guidelines to enable compliance with obligations to recommend use of a payment escrow service and to display whether the seller is an individual seller or a business seller.

Second, overseas businesses whose sales revenue or user counts meet the relevant thresholds should carefully assess whether they fall within the scope of the requirement for domestic agent designation; if so, they must designate and disclose a domestic agent within one year after promulgation of the Amendments.

Third, given the relaxed requirements for temporary suspension orders, businesses engaged in e-commerce and mail order sales should proactively identify and remedy potential dark pattern issues.

Fourth, all businesses that post product reviews should prepare to transparently disclose information regarding review collection and processing (including the posting period, ratings, deletion criteria, and objection procedures) within six months after promulgation of the Amendments. Companies should closely monitor the forthcoming subordinate laws and regulations (including the enforcement decree and enforcement rule) to confirm the detailed scope of the required disclosures, as well as disclosure methods and procedures, and comply accordingly.

Lastly, because the KFTC is expected to revise subordinate laws and regulations following promulgation of the Amendments, companies should continuously monitor legislative and regulatory developments. Where appropriate, companies should consider submitting comments during the legislative notice period regarding feasibility of implementation, concerns regarding overregulation, and technical limitations.

Overall, the Amendments are significant in that they strengthen consumer protection in the digital environment while institutionalizing and specifying accountability for platforms and overseas businesses. Companies should respond proactively to the evolving regulatory landscape by updating internal policies, systems, terms and conditions, and UI/UX to minimize legal risk and to establish a sustainable operating framework grounded in consumer trust.

Yoon & Yang’s Antitrust & Competition Group comprises more than 50 dedicated professionals who specialize in all areas of antitrust law, including the Monopoly Regulation and Fair Trade Act, the Fair Subcontracting Transactions Act, the Fair Franchise Transactions Act, and the Fair Transactions in Large Retail Business Act. Our team provides comprehensive, one-stop services encompassing advisory work including compliance audits, responses to KFTC investigations, as well as representation in administrative, criminal, and civil litigation. Should you require assistance in any aspect of antitrust or competition law, please contact us or visit our website at https://www.yoonyang.com/