Users Agreement

- LordSystem Co., LTD. Electronic Financial Transactions-

 

Article 1(Purpose)

This Users’ Agreement (the “Agreement”) is intended to set forth basic matters on electronic financial transaction between the User and the Company under which the User uses services (the “Service”) of issuance and management of pre-paid electronic payment means provided by Load System (the “Company”).

Article 2(Definitions)

As used herein, the following terms shall have the following meanings:

2.1 “Electronic Financial Transaction” means a transaction under which the Company provides Service through electronic devices and the User uses the Service in an automated way without direct seeing or communications with the Company.

2.2 “Electronic Device” means a device transmitting and processing an information through mobile devices including cash dispenser, automatic teller machine, payment terminal, computer and mobile phone and in other electronic way.

2.3 “Electronic Payment Transaction” means an Electronic Financial Transaction under which a person giving a fund (the “Payer”) causes the Company to move such fund to the person (the “Payee”) receiving such fund by means of an electronic payment.

2.4 “Pre-paid Electronic Financial Transaction ” means the one to be used for payment in consideration of the purchase of the goods and services from a 3^rd party other than the issuer under the Electronic Financial Transaction Act, with the certificate and information of certificate showing that transferable monetary value is stored and issued in an electronic method.

2.5 “User” means the person using the Service provided by the Company and is classified into member and non-member depending whether such person consents to this Agreement or not.

2.6 “Member” means a person using the Service after receiving an approval for membership by installing applications on mobile devices under the process designated by the Company and consenting to this Agreement.

2.7 “Non-Member” means a person using the Service provided by Company without becoming a Member. The Company posts this Agreement in the mobile application or internet website operated by the Company to ensure that Non-Members will be able to check the details of user agreement.

2.8 “E-Document” means e-document and the information prepared, sent, received or stored under Subparagraph 1 of Article 2 of the Framework Act of E-Transaction.

2.9 “Access Media” is the means or information used for directing a transaction or securing truth and correctness of the User and details of transactions in Electronic Financial Transaction, and refers to electronic card, electronic information equivalent to such card, e-signature generation information and authentication certificate as prescribed in the E-Signature Act, user number registered in the Company, bio-information of User and password necessary for using these means or information which are prescribed in Subparagraph 10 of Article 2 of the Electronic Financial Transaction Act.

2.10 “Direction of Transaction” means the User’s direction for processing of Electronic Financial Transaction to the Company hereunder.

2.11 “Mistake” means the cases where the Electronic Financial Transaction is not executed hereunder or by following the transaction direction of the User without willful misconduct or negligence of the User.

2.12 “Franchisee” means the person providing goods or services to the User in trading through Electronic Financial Transaction including prepaid Electronic Financial Transaction hereunder, who is not a financial company or e-finance service provider.      

Article 3 (Statement and Modification of Agreement)

3.1 The Company posts important details hereof on the mobile application screen or internet website (the “Application Screen”) prior to the User’s use of Service to ensure that the User will check such important details hereof.

3.2 Upon request of the User, the Company issues a copy hereof to the User by way of transmission of e-document, e-mail, transmission by fax, by sending mail or direct issuance (the “E-Document Transmission”)

3.3 In modifying this Agreement, the Company notifies the User by posting the modified Agreement on the application screen at least 1 month prior to the execution date. Provided that, in a case of urgent modification of this Agreement due to revision of laws and regulations, the Company will post such modified Agreement on the application screen and gives a post notice through E-Document Transmission.

3.4 In giving a notice or informing under the foregoing Paragraph 3.3, Company notifies or informs at the same time that “when the User does not consent to the modification, User may terminate an agreement within 1 month from the date of receipt of such notice and User will be deemed to consent to the modified agreement unless it expresses its intent to terminate the agreement”.

3.5 If the User fails to express an intent to terminate the agreement within 1 month from the date of receipt of such notice as set forth in the foregoing Paragraph 3.4, the User shall be deemed to consent to the modified agreement.

Article 4(Types of Service)

The Service provided by the Company hereunder is the service of issuance and management of Prepaid Electronic Financial Transaction.

Article 5(Service Hour)

5.1 The Company provides the Service all year round and 24 hours a day, in principle: Provided that it may differ depending on the circumstances of the issuer of other payment means, including financial company.

5.2 The Company may temporarily suspend the Service after giving prior notice of the fact thereof through application screen if it is inevitable, if necessary for repair, inspection and other technical need for telecommunication equipments, or due to the circumstances of the issuer of other payment means including financial company: Provided that the Company may suspend the Service without giving such prior notice in case of inevitable circumstances including system failure restoration, urgent program repair and external factors.

Article 6(Check of Transaction Details and Correction of Mistake)

6.1 The Company shall ensure that each User will be able to check the details of transactions through application screen and, upon request of the User, will issue a document of details of transactions through E-Document Transmission within 2 weeks from the date of receipt of such request.

6.2 If the Company cannot provide the details of transactions for the reasons including failure of operation of electronic devices even upon receipt of request for issuance of written documents thereof from the User under the foregoing Paragraph 6.1, the Company shall immediately inform to User through E-Document Transmission and the period thereof shall not be added to the period for issuance of such written document.

6.3 The details of transaction subject to the foregoing Paragraph 6.1 to be retained for 5 years shall be as follows:

6.3.1 The title and number of account for Electronic Financial Transaction

6.3.2 Types and amount of Electronic Financial Transaction

6.3.3 Information showing other party of Electronic Financial Transaction

6.3.4 Date of Electronic Financial Transaction

6.3.5 Matters of User’s consent to withdrawal

6.3.6 Information which can identify the types of electronic devices and electronic devices

6.3.7 Fees received by Company in consideration of Electronic Financial Transaction

6.3.8 Record of access to electronic devices related to the relevant Electronic Financial Transaction

6.3.9 Matters of application of Electronic Financial Transaction and modification of conditions

6.3.10 Record of Electronic Financial Transaction, the transaction amount per case of which exceeds 10,000 won per transaction

6.4 The details of transaction subject to the foregoing Paragraph 6.1 to be retained for 1 year shall be as follows:

6.4.1 Record of Electronic Financial Transaction for small amount of not more than 10,000 won of transaction amount per case

6.4.2Record of approval of transactions while using Electronic Financial Transaction

6.4.3 Matters of fact of User’s request for mistake correction and result of handling thereof

6.5 User desiring to request for written issuance as set forth in the foregoing Paragraph 6.1 may make such request through E-Document Transmission including using the following address, e-mail and telephone number:

6.5.1 Address: Customer Center/ 5^th Fl., Inan Bldg. 30 Worldcup Bukro, Mapo-gu, Seoul, Republic of Korea

6.5.2 E-mail: lordpay@lordsystem.co.kr

6.5.3 Tel.: 1833-9262

(The telephone number of the customer center may differ based on additional services. For details, please refer to the service user agreement.)

6.6 If the User discovers any mistake in using the Service, the User may request the Company to make corrections as set forth in the foregoing Paragraph 6.5.

6.7 Upon receipt of such request, the Company shall immediately conduct an investigation thereof and inform the User of the result thereof within 2 weeks from the date of receipt of such request.

Article 7(Management of Access Media)

7.1 The Company shall not be liable for the damage of the amount stored in Prepaid Electronic Payment Media which has been generated prior to receipt of notice of loss or theft of access media from the User.

7.2 In providing the Service, the Company may select access media and check the identity, authority and details of direction of User

7.3 In using access media, unless otherwise consented by the Company or prescribed in other laws, the User shall not commit any act for transferring, leasing, delegating the use thereof or providing security such as pledge: Provided that, for Prepaid Electronic Payment Media, the User may transfer it to or acquire it from a 3^rd party.

7.4 The User shall not divulge, expose or neglect its own access media to a 3^rd party and shall take sufficient caution to prevent theft, falsification or alteration of access media.

 Article 8(Generation and Retention of Record of Electronic Financial Transaction)

8.1 The Company generates and retain a record to ensure that the details of Electronic Financial Transaction used by the User will be able to be traced, searched and any mistake thereof will be checked and corrected.

8.2 The types and retention period of such record to be retained by the Company under the foregoing Paragraph 8.1 may be determined as set forth in Paragraphs 6.3 to 6.4.

Article 9 (Effect of EPT and Withdrawal of Transaction Direction)

9.1 The Company executes the payment process if the transaction directions of the User are related to the EPT and transmits the details of such directions to ensure that the payment will be made.

9.2 Should the User uses Prepaid Electronic Payment Media for making payment, the effect of payment comes into effect when the information about the amount directed for transaction arrives at the electronic device designated by Payee.

9.3 The User may withdraw transaction directions by way of E-Document Transmission to the person in charge as set forth in Paragraph 6.5 hereunder up to the date when the effect of payment comes into effect.

9.4 Should any electronic payment come to effect, the User may be refunded the payment by way of withdrawal of subscription as prescribed in applicable laws and regulations including the Act on Consumer Protection in E-commerce.

Article 10 (Prohibition of Provision of Electronic Financial Transaction Information)

Unless it is required by the laws and regulations or consented by the User, the Company will not provide, divulge to a 3^rd party or use for purposes other than business any information or materials of personal information of the User, account of the User, details of access media and Electronic Financial Transaction acquired in the course of providing Service.

Article 11(Responsibility of Company)

11.1 The Company shall be liable for the damage incurred by the User caused by accident arising out of falsification or alteration of access media, accident arising out of conclusion of agreement or electronic transmission of transaction directions, or other accident arising out of use of access media acquired by using false or other wrongful way after invading electronic devices telecommunication network as prescribed in Article 2(1) 1 of the ‘Act on Promotion of Telecommunication Network Use and Information Protection’.

11.2 Notwithstanding the foregoing Paragraph 11.1, the Company may cause the User to be liable for the entire or part of damage incurred by the User arising out of any of the following:

11.2.1 when the User leases, delegates use, transfers or provides as security the access media to a 3^rd party

11.2.2 when the User divulges, exposes or neglects their own access media even when the User knew or should have easily known that a 3^rd party uses the access media of the User without authority for Electronic Financial Transaction,

11.2.3 when the User as a corporate entity (excluding small company as defined in Article 2(2) of the Framework Act on Minor Enterprises Act) has incurred damage and the Company fulfills its duty of care as reasonably required including establishment of security process and strict compliance thereof to prevent accidents

11.2.4 when the Company requests the User to take additional security measures while making Electronic Financial Transaction in order to strengthen security in addition to the check under Article 6(1) of the Electronic Financial Transaction Act but the User rejects it without justifiable reason and the accident as prescribed in Article 9(1)3 of the same Act occurs

11.2.5 when the User commit any of the following acts in terms of the media, means or information used for additional security measures under the foregoing Subparagraph 11.2.4 and any accident as prescribed in Article 9 (1) 3 of the Electronic Financial Transaction Act occurs

A. Divulge, expose or neglect to a 3^rd party

B. Lease or delegate its use to a 3^rd party

C. Transfer to or provision as security to a 3^rd party

Article 12 (Company’s Obligation of Securing of Stability)

The Company complies with the standards for information technology and e-finance business in terms of personnel, equipment and electronic devices for e-transaction or e-procession by the types of Electronic Financial Transaction as designated by the Financial Service Commission in order to secure the stability and credibility of Electronic Financial Transaction.

Article 13(Minimum Amount for Use)

The Company designates 500,000 won of minimum amount to be held for the Prepaid Electronic Payment Media: Provided that, for the one for Prepaid Electronic Payment Media issued under the real name as prescribed in Subparagraph 4 of Article 2 of the ‘ Act on Real Name Financial Transaction and Confidentiality’, such minimum amount shall be 2 million won.

Article 14 (Effective Period and Extinctive Prescription)

14.1 The Company may set up an effective period of not less than 1 year for the Prepaid Electronic Payment Media and, unless otherwise set up, the period of extinctive prescription as set forth in the following Paragraph 14.2 shall be deemed as an effective period.

14.2 If the Prepaid Electronic Payment Media is not deposited or used at no time during the lapse of 5 years from the date of last use of individual Prepaid Electronic Payment Media, the extinctive prescription of commercial debts completes and the Prepaid Electronic Payment Media charged by the User will automatically be expired.

14.3 The Company shall notify the User at least three times, including 30 days prior to the expiration of the Prepaid Electronic Payment Media issued for a fee, via email or text message on the approach of the effective period, whether and how the effective period can be extended, and the fact that 90% of the balance can be returned after the expiration date.

 

Article 15 (Refund of Prepaid Electronic Payment Media)

15.1 After the expiration date (limited to cases where the extinctive prescription has not been completed), up to 5 years from the purchase date or final recharge, the User may request for a refund of the unused portion of the Prepaid Electronic Payment Media from the Company, with 90% of the balance to be returned.

15.2 The User may request Company to refund the balance of Prepaid Electronic Payment Media and the Company will refund the entire of such balance under the process designated by the Company without deduction of fees if the case falls under any of the followings: Provided that, if the case does not fall under any of the followings but the User simply changes their mind, the Company may reject the refund or may refund after deduction of fee:

15.2.1 when the User requests for refund of the entire of purchase price within 7 days from the purchase date of Prepaid Electronic Payment Media

15.2.2 when it is difficult for the franchisee to provide the goods or service due to act of God and the use of Prepaid Electronic Payment Media is impossible

15.2.3 when the franchisee cannot provide the goods or service due to deficiency of Prepaid Electronic Payment Media

15.2.4 when the User requests for refund of the balance after using not less than 60% of Prepaid Electronic Payment Media (not less than 80% when purchase price is not more than 10,000 won) based on the balance as of purchase or the final charge (: Provided that giving a present, transfer or point conversion will not be the case of such use)

 

15.3 For a partnership card, if a separate refund standard of Affiliate exists, such standard shall apply first.

15.4 Refund for the part of the balance of Prepaid Electronic Payment Media other than the entire thereof is not available.

15.5 Any Prepaid Electronic Payment Media provided by the Company free of charge through purchase of goods and services or event shall not be subject to a refund and shall not be added in calculation of use as set forth in the foregoing Subparagraph 15.1.4. In addition, if the Company refunds Prepaid Electronic Payment Media to the User, Prepaid Electronic Payment Media provided free of charge will become expired.  

15.6 The Company may limit the maximum amount and times of refund in order to prevent the User from being refunded wrongfully for the purpose of cash loan. .

15.7 Any other matter of refund which is not set forth herein will be notified through the application screen.

 

Article 16 (Matters concerning erroneous remittances)

16.1 In the event of a transfer of funds to the wrong party due to a customer’s erroneous entry of a financial company’s name or account number via an electronic means of prepayment (“erroneous remittance”), the customer may contact us or the receiver of the incorrect remittance (“the receiver”) through the receiving financial company and request the return of the erroneously remitted amount.

16.2 We shall provide the following information to the customer within 15 (fifteen) days of the customer’s report on the erroneous remittance: the result of our processing of the customer’s request or the current status of the handling thereof, including the facts about our contact with the receiver, whether the receiver is willing to return the money, and the reason for the receiver’s unwillingness to return the money, if that is the case, etc.

16.3 Where the receiver refuses to return the money despite having received our request or that of the receiving financial company to return it, the customer may ask the Korea Deposit Insurance Corporation (« KDIC ») for permission to use the system for returning an erroneous remittance as provided under the Depositor Protection Act, Chapter 5 Support for the Return of Erroneous Remittances. (Such a request concerning an erroneous remittance may only be made after July 6, 2021, i.e. the due date of implementation of the newly amended Depositor Protection Act.)

Such a request for return shall not be made concerning a transaction for which the KDIC is not able to obtain the receiver’s real name, such as a remittance made through a contact point or between members of a social media.

16.4 Where the KDIC requests the submittal of a documented material, such as the reason for a receiver’s refusal to return a remittance, the real name/address/contact point, or the status of an erroneous remittance, so as to be able to expedite the handling of a case of erroneous remittance more efficiently, we shall comply with the request unless we have a justifiable reason for not doing so.

16.5 Where one of the following is the case concerning a customer’s request for the return of an erroneous remittance made to the KDIC, the KDIC may halt its support procedure under the law.

16.5.1 Where there are concerns about the honesty or justness of a customer’s request for the return of an erroneous remittance;

16.5.2 Where it is ascertained through an examination of objective materials that it is not a case of erroneous remittance;

16.5.3 Where a lawsuit is under way or has been completed concerning an erroneous remittance prior to the date of such request;

16.5.4 A case recognized as such by the Deposit Insurance Board.

 

Article 17 (Management of Prepaid Deposits & Related Disclosures)

17.1 The Company shall separate the User’s prepaid deposit from its own property, and entrust it to an external financial institution or subscribe to payment guarantee insurance.

17.2 The Company shall check whether the total amount of prepaid deposit and the total amount of funds actually in operation, such as trust money, are consistent with each other every business day, and disclose the amount of prepaid deposit, trust details, payment guarantee insurance subscription, amount insured, etc. on the website (specifying the website address) at the end of every quarter (within 10 days after the end of the quarter).

17.3 In any of the following cases, the Company shall first pay the prepaid deposit to the User through a trust company, insurance company, etc. In this case, the Company shall make an announcement of this fact, the time and place of payment of the prepaid deposit, and other matters related to the payment of the prepaid deposit within one month in two or more daily publications, in addition to doing so on the company website, etc.

17.3.1 [P1] If the registration is canceled;

17.3.2 If the Company is dissolved or abolishes the issuance and management work of Prepaid Electronic Payment Media;

17.3.3 If the company declares bankruptcy;

17.3.4 If the Company receives an order to suspend the issuance and management work of Prepaid Electronic Payment Media;

17.3.5 If a cause corresponding to items 1) through 4) occurs

 

Article 18 (Trust & Payment Guarantee Insurance for Prepaid Deposits)

18.1 The Company shall entrust all of the User's prepaid deposit, and instruct the trust company to manage them as safe assets. However, up to one-tenth (hereinafter referred to as ‘payment reserves’) of the total prepaid deposit (excluding the amount subscribed to payment guarantee insurance under paragraph 4) as of the end of the previous month may be deposited with the trust company as a safe asset that can be deposited and withdrawn at any time, similar to an ordinary deposit.
18.2 The Company shall designate the User as a beneficiary of the entrusted prepaid deposit (excluding payment reserves). However, if it is difficult to designate an individual user as a beneficiary, a special purpose corporation (SPC) that has no interest in the Company may be designated as the beneficiary.
18.3 The Company shall promptly entrust the details of changes in users and funds on that day by the next day.
18.4 Notwithstanding Paragraph 1, if the Company does not entrust some of the prepaid deposit, and manages them directly (excluding payment reserves) due to inevitable reasons, it shall subscribe to payment guarantee insurance for the entire amount subject to management, and also in this case, the Company shall manage the prepaid deposit subject to management as safe assets.

 

Article 19(Dispute Resolution and Mediation)

19.1 The User may request the Company to handle their opinion, complaints and disputes including damage claims related to the Electronic Financial Transaction by contacting the person in charge from the customer center as posted on the application screen or contact as set forth in Paragraph 6.5 hereof.

19.2 Upon the User’s request of dispute resolution, the Company will conduct an investigation thereof or give a guide of result of handling such dispute to the User within 15 days from the date of receipt of such request.  

19.3 Any User having an objection to such result of dispute handling may file an application for dispute resolution related to the use of the Service of the Company with the Financial Dispute Mediation Commission of the Financial Supervisory Service under Article 51 of the Act on Installation of Financial Service Commission or the Consumers Dispute Settlement Commission of the Korea Consumer Agency under Article 31 (1) of the Framework Act on Consumers.

Article 20(Other Rules and Jurisdiction)

20.1 Any matter which is not set forth herein shall be determined in the individual user’s agreement.

20.2 Any matter which is not set forth herein or in the individual user’s agreement for Electronic Financial Transaction shall be determined as prescribed in applicable laws and regulations on consumer protection including the Electronic Financial Transaction Act, the Act on Consumer Protection in E-Commerce, and the Credit Finance Business Act.

20.3 Any suit for all the dispute on this Agreement and Electronic Financial Transaction shall be filed with the 1^st instant court having jurisdiction under the Civil Procedure Act.

20.4 If the provision of individual agreement between the Company and the User differs from the one hereof, the provision of such individual agreement prevails.

 

<Supplementary Provision>

This Agreement shall be executed from the 1^st day of December 2018.

This Agreement shall be executed from the 18^th day of December 2023.