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A Study on Supervision of E-commerce Companies in Seoul

Hyungho YounㆍJieyeoun Lee


Recently, the electronic commerce (e-commerce) industry has grown as a result of mushrooming internet and mobile shopping. In line with the growth, complaints filed with the public authority have also increased abruptly. Also, a new form of electronic shopping such as SNS and off-shore purchases has appeared and related complaints are additionally incurred. Thus, the number of public complaints is expected to continue to increase.

The complaints related to return and refund have largest share, accounting for 35% of the total complaints. Delayed delivery is the next common complaint. On the other hand, the number of fraudulent sales has diminished, indicating that practices in e-commerce have somehow been stabilized.

The number of legal actions is less compared with numerous complaints for unlawful practices and legal measures are usually recommended to correct these practices. Pecuniary penalties and criminal charges are rare. It seems that legal actions against unlawful practices are not enforced adequately enough to discourage such practices.

To supervise e-commerce activities and to encourage lawful practices effectively, the city first needs to introduce professional public officials who will examine unlawful practices and announce charges against the owners if necessary. Second, the city should also monitor the mobile commerce industry because its commerce volume exceeds that of on-line commerce. Third, the city should cooperate with boroughs (Gu-cheong) to prepare a unified system for supervising e-commerce activities. Fourth, the city should build a consultative group with major business companies so that they voluntarily engage in lawful practices.



01 Introduction

1_Research Background and Purpose

2_Research Methods


02 Overview of Electronic Commerce

1_Concepts and Components of E-Commerce

2_Types of E-commerce Channels

3_Overview of E-Commerce Business Entities


03 Governing System and Legal Clauses for Electronic Commerce

1_Role and Duty of E-Commerce Business Entities

2_Unlawful Practices in E-Commerce and Legal Actions

3_Comparison between Korea and Japan E-Commerce Laws

4_Activities of Public Officers Supervising E-Commerce Activities


04 Monitoring of Electronic Commerce and Legal Actions against Unlawful Practices

1_Monitoring of E-Commerce and Legal Actions against Unlawful Practices

2_Consumer Protection in E-Commerce


05 Suggestion on Supervising Business Entities in Electronic Commerce

1_Suggested Amendment for E-Commerce Law

2_Policy Recommendation