Dispute resolution for secondhand transactions between individuals is being restructured to combine platform self-regulation with public mediation. As the share of consumer-to-consumer (C2C) transactions in e-commerce increases, disputes that cannot be resolved through the traditional business-to-consumer protection system are on the rise.
According to the Korea Internet & Security Agency (KISA), C2C transactions accounted for 62.4% of e-commerce last year. As disputes in secondhand transactions emerge as a major type of e-commerce conflict, a self-regulation system linked with key platforms like Danggeun and Bunjang is being enhanced.
While consumer protection regulations apply to transactions in general shopping malls, C2C transactions often involve individuals as both sellers and buyers, making it difficult to apply the same buyer protection standards. This has created limitations in determining liability based on civil law principles regarding defects.
To address this issue, KISA has been operating a self-regulation dispute resolution system with major secondhand transaction platforms such as Danggeun, Bunjang, and Jungonara since 2022. When a dispute arises on these platforms, they first attempt to mediate, and unresolved cases are referred to KISA's Electronic Transaction Dispute Mediation Committee.
Recognizing that public mediation alone cannot handle the surge in C2C transaction disputes, KISA aims to resolve cases based on transaction histories and communication records within the platforms. This approach allows KISA to focus on cases requiring legal judgment or standard-setting, thereby increasing the overall number of resolved disputes.
As the initial mediation by platforms expands, the need to standardize mediation criteria has also grown. If the outcomes of similar disputes differ between platforms and KISA, it could lead to confusion among users. The Ministry of Science and ICT, KISA, the Fair Trade Commission, the Consumer Agency, and major platforms conducted a comprehensive review of about 100,000 dispute consultations and mediation cases submitted to the Electronic Transaction Dispute Mediation Committee from 2021 to 2024 to refine these standards.
The revised standards will be used as common criteria in both platform initial mediation and KISA public mediation processes. They will assess liability and defect status across 20 types of criteria, including posting transaction listings, direct transactions, delivery transactions, and contract cancellations, while also referencing standards for nine categories of items such as electronics, cultural goods, and clothing to determine refund and compensation levels.
However, these mediation criteria cannot be directly applied to all cases due to the often unclear timing of defects or liability in C2C transactions. Therefore, actual mediation will consider the circumstances of the transaction, the degree of defects, and the statements of the parties involved to adjust the scope of refunds and compensation on a case-by-case basis.
The extent of platform responsibility in secondhand transactions remains an unresolved issue. Currently, secondhand transaction platforms are classified as intermediaries rather than sellers, meaning that liability for defects and refunds is generally handled between the seller and buyer.
Particularly, as Bunjang plans to mandate the use of its secure payment system, Bunjang Pay, starting in August 2024, discussions are emerging about whether platforms can still be viewed merely as intermediaries. Industry experts argue that since platforms are involved in the transaction process and generate revenue, they should also bear greater responsibility for preventing disputes and mediating after they occur.
A KISA official stated, "The goal of self-regulation in dispute resolution is not just to increase the success rate of mediation but to enhance the actual resolution of disputes. By dividing roles between platforms and public mediation, we can provide quicker relief for minor and everyday disputes."
* This article has been translated by AI.
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