Standard Terms and Conditions for Individual Membership

Standard Terms and Conditions No.10058
Effective from April 1st, 2009,

Chapter I General Provisions

Article 1 (Member)

1. (1) Individual member shall be classified into Primary Member and Family Member.
2. (2) Primary Member shall mean a person who accepts this Terms and Conditions and obtain a BC Card (hereafter “Card”) issued by XX Bank (hereafter “Bank”) after submitting an application to Bank.
3. (3) Family Member shall mean a person who is approved by Primary Member to be issued Card from Bank and for whom Primary Member has agreed to take the responsibility of using the Card including settlement of payments in accordance to this Terms and Conditions.

Chapter II Card Issuance and Management

Article 2 (Expiration Date and Re-Issuance of Card)

1. (1) The expiration date of Card shall be shown on the front of Card.
2. (2) Before the expiration date, Bank will notify Member of renewal one (1) month before the expected issuance date of renewed Card if Member is acknowledged to be eligible for the renewal and issue a renewed Card with a new expiration date if there’s no dissent from Member in twenty (20) days after the notice.
3. (3) In case when Member has not used Card during six (6) months prior to the expected issuance date of renewed Card, Bank shall renew and issue a new Card only when Member consents to the renewal of Card in writing.
4. (4) This Terms and Conditions shall continue to apply after the renewal of Card.

Article 3 (Card Management)

1. (1) Member shall write his/her signature on the signature space of Card immediately upon accepting Card and shall be prohibited from granting a third party including a spouse or a family member to use Card.
2. (2) The ownership of Card shall be held by Bank. Member shall not be allowed to lend or transfer Card to a third party, or offer it as collateral, and shall fulfill his/her fiduciary duty for appropriate use and management of Card.
3. (3) Member shall be prohibited from using Card which has expired or which has been renewed, replaced, or reissued, and such Cards shall be returned to Bank or BC Card without delay, or be destroyed completely to prevent reuse.
4. (4) Any liabilities arising from violation or negligence to implement Paragraph 1 to 3 shall be borne by Member.

Article 4 (Annual Membership Fee)

1. (1) Annual Membership fee shall consist of basic membership fee and service fee.
2. (2) Bank may charge Member an Annual Membership fee for a Card before its usage is active, and the Annual Membership fee shall be charged once every year after issuance of Card. Annual Membership fee of the first year of Card issuance shall not be exempted and must be paid by Member.
3. (3) Bank shall not charge an Annual Membership fee on Member who has not used Card for one (1) year or longer from the time the Annual Membership fee was charged.
4. (4) Bank may charge a service fee in addition to basic membership fee when Member elects to receive additional services provided by Bank and BC Card, or other institutions partnering with Bank and BC Card. In this case, Bank shall inform Member of the amount and details of the service fee in advance.

Article 5 (Suspension and Termination of Card Use)

1. (1) Bank may suspend or terminate the use of Card in the event that Member falls under any of the followings when Bank shall inform Member of the suspension or termination and the reason by way of mail, phone, e-mail, or SMS within three (3) business days of occurrence of the event resulting in the suspension or termination arises, not including the time for delivery.
   1. 1. Providing false information on the credit card application
   2. 2. Receiving court sentence of (provisional) seizure, injunction decision, or court-ordered auction or compulsory execution of assets
   3. 3. Failing to settle credit card payment, credit card loans, or any financial liabilities owed to banks and other financial institutions
   4. 4. Significant fall in credit rating by banks and other financial institutions due to overdue payment, application for insolvency or individual debt relief, and any other reasons
   5. 5. Request by a legal guardian of a minor Member to suspend transactions
   6. 6. When a transaction has been deemed illegitimate or abnormal
   7. 7. When it is deemed impossible or substantially infeasible for Member to settle debts for reasons including but not limited to immigration to foreign countries, imprisonment, and death
   8. 8. When it is deemed not feasible for Member to fulfill the objective of purchase agreement by violating applicable laws such as Specialized Credit Financial Business Act or the Terms and Conditions
2. (2) Card usage may be suspended when possibility of financial loss caused by criminal activities including but not limited to hacking and malfunction of computer system of to merchants, Bank, BC Card, or Member.
3. (3) Member may request Bank to suspend or terminate Card usage.
4. (4) As for Member who has not used Card for more than one (1) year after the last transaction date (the issuance date in case of inactive Card), Bank may terminate the membership or shall confirm, by way of mail, e-mail, SMS, or ARS, within three (3) months after one (1) year has passed, whether Member intends to terminate the agreement or not.
5. (5) In case when Member expresses the intension to terminate by way of letter, ARS, of fax in accordance with Paragraph 4, Bank shall terminate the membership agreement.
6. (6) Primary Member may terminate the Card usage of Family Member without consent of the latter.
7. (7) In the event that Card is suspended for the reasons mentioned in Paragraphs 1, 3, and 5, Member shall return Card immediately, and Bank may request Member to pay the entire outstanding amount as of the date.

Chapter III Use of Card

Article 6 (Use of Card, etc.)

1. (1) In case when Member intends to purchase goods or services with Card, he/she shall present Card to the merchants of BC Card in Korea (hereafter “Domestic Merchants”) or the merchants of foreign credit card companies in partnership with BC Card outside of Korea (hereafter “Offshore Merchants”), and write his/her signature on the sales voucher that is identical to the signature on Card. Using signature to verify identify of Member is not necessary when other forms of identification are available for indirect transactions including but not limited to e-commerce, mail-order commerce, and telemarketing or when liabilities for illegal transactions are born by Bank or merchants.
2. (2) Member shall be prohibited from engaging in fraudulent usage of Card such as cashing back from a transaction disguised as a legitimate purchase of goods or services.
3. (3) Bank or BC Card may restrict Member from using Card or lower the line of credit at specific merchants (including both Domestic and Offshore Merchants), in consideration of credit ratings of Member or merchants, laws, regulations, or orders of supervisory authorities.

Article 7 (Overseas Card Use)

1. (1) Member shall comply with provisions of applicable laws including the Foreign Exchange Transaction Regulation when using Card outside of Korea to make transactions or pay non-trade expenses.
2. (2) Claims and responsibilities of transactions made overseas by Member shall be governed according to the policies of foreign credit card companies, which Bank shall inform to Member at the time of receiving claims from Member.

Article 8 (Credit Limit)

1. (1) Credit limit shall be determined by Bank after reviewing credit line requested by Member at the time of application in accordance to approval criteria of Bank, which shall be then notified to Member.
2. (2) Bank may adjust the limit based on factors including but not limited to average monthly payment ability, credit rating, and account history of Member before expiration date or upon renewal if deemed necessary, and shall notify Member of the adjusted limit by way of mail, SMS, or e-mail.
3. (3) Unless requested by Member, Bank shall obtain the consent of Member when increasing credit limit. Bank shall notify Member by mail, phone, SMS, or e-mail prior to increasing credit limit to the previously approved amount or the amount previously requested by Member.
4. (4) Unless requested by Member, Bank shall notify Member prior to reducing credit limit. Bank shall notify Member immediately when credit limit is reduced for reason(s) specified in Article 5.1.
5. (5) In the event that Member has specific circumstances to exceed credit limit, Bank may grant a special approval after confirming the identity of Member, the amount, and the merchant, provided that transaction request in excess of credit limit within a pre-determined amount shall be regarded as request for temporary credit limit increase and Bank may grant temporary automatic approval. Responsibilities of Member shall extend to excess amount authorized.
6. (6) Credit limit shall be notified to Member on monthly statement, etc., and become readily available through website, ARS or phone.

Article 9 (Installment Payment Transaction)

1. (1) Member may make transactions with installment payment at Domestic Merchants authorized by Bank or BC Card.
2. (2) The installment period shall be determined by Member, provided that it does not exceed the maximum period determined and notified by Bank. Right to retract and counter-claim shall be extended to installment payment transactions with a minimum of three payments for period of two months. Some merchants may offer restricted installment payment options.
3. (3) Monthly payment of installment payment transaction shall be calculated by monthly portion of transaction amount and finance charge.
4. (4) First month payment may include remaining balance.
5. (5) Annual percentage rate for installment payment and finance charge per KRW 100 shall be included in monthly payment and become available to Member for easy access on internet and others.
6. (6) Any change in finance charge shall be notified to Member by way prescribed in Paragraph 5.

Article 10 (Right to Retract Installment Payment Transaction)

1. (1) Member reserves the right to retract installment payment transaction on the day of accepting the installment payment agreement or within 7 days after accepting products or services when not receiving the agreement, provided that Member shall not be allowed to exercise the right to retract in any of the following events.
   1. 1. After accepting, removing package, and using a product whose value is deemed to decrease significantly including but not limited to automobile, refrigerator, washing machine, or individually-packaged music CD, DVD, and software .
   2. 2. When professional installation or special parts and materials required for products such as freezer, air-conditioner (including air-conditioner with heating function), or boiler has been supplied.
   3. 3. Transaction amounting to less than KRW 200,000.
   4. 4. Member is held liable for causing substantial loss of value or destruction of products.
2. (2) Request by Member for retraction in accordance with Paragraph 1 shall be submitted in a written document.

Article 11 (Right to Counter-claim Installment Payment)

1. (1) Member may refuse to make installment payment for transaction amount exceeding KRW 200,000 for reasons specified below.
   1. 1. Installment agreement is invalidated, cancelled, or retracted.
   2. 2. The whole or a part of the product or service is not delivered or provided as agreed upon by Merchant.
   3. 3. Merchant fails to fulfill defects liability.
   4. 4. Merchant declares default and it becomes impossible to achieve the objective of the installment agreement.
   5. 5. Transaction meets the conditions of counter-claim of installment payment as prescribed in the Standards for Consumer Dispute Resolution (Notification of the Ministry of Finance and Economy).
2. (2) The amount which Member may refuse to pay after exercising the right to counter-claim installment payment shall be limited to outstanding balance whose payment date has not yet arrived.
3. (3) Member shall exercise good faith in trying to resolve disputes with Merchant before counter-claiming installment payment transaction.

Article 12 (Cash Advance)

1. (1) Member may request cash advance transaction using ATM, phone, internet or as prescribed by Bank within the approved cash advance limit.
2. (2) Upon verification of PIN, cash advance as prescribed in Paragraph 1 shall be paid immediately or transferred to Member’s credit card payment bank account (or other account specified by Member) within the period determined by Bank.
3. (3) Finance charge for cash advance shall be notified to Member on monthly statement, internet, and others.
4. (4) Cash advance transaction through ATM, phone, or internet may incur service charges levied by Bank or partners of Bank in addition to the finance charge prescribed in Paragraph 3.

Article 13 (Credit Card Loan)

1. (1) Member may take out credit card loan within the limit decided and notified by Bank.
2. (2) Other necessary matters on credit card loan shall be provided in a separate terms and conditions.

Article 14 (Reward Points and Other Services)

1. (1) Bank shall award and accumulate reward points for Member in proportion of transaction amount incurred by Member at Bank and Merchant. Balance of points upon termination of Card shall be reserved for a specified period. However, unused points shall expire immediately upon request by Member to expunge all personal information.
2. (2) Transactions which are eligible for reward points shall be limited to domestic transactions with single payment and installment payment.
3. (3) Bank or BC Card shall notify on its website and supplementary statement detailed criteria of following items with regard to reward point program, and announce to Member upon Card issuance.
   1. 1. Detailed program information including accumulation, usage, expiration, etc.
   2. 2. Details on accumulation rate, usage, required minimum point level before usage, annual accumulation limit, etc.
   3. 3. Restrictions on accumulation (missing payment, exceeding annual limit, etc) and usage (late or missing payment, etc).
4. (4) Point Program and other Card-related services offered to Member may be revised or suspended depending on marketing policies of Bank or BC Card, or conditions of partner companies, which shall be notified to Member three (3) months before the change or suspension takes effect, provided that it will not do so in case when the change or suspension is resulted from inevitable reasons such as unilateral business closure, bankruptcy, insolvency, etc. of partner companies.
5. (5) Bank or BC Card shall notify on monthly statement of Member two (2) months prior to expiration of reward points and provide details such as the number of points to expire and the expiration date.

Chapter IV Payment

Article 15 (Payment)

1. (1) Member shall make a payment amounting to outstanding balance and all applicable charges on the day of designated payment date selected among several dates in a method designated by Bank.
2. (2) Transactions occurred overseas or with foreign merchants in foreign currencies, the amount due shall be converted to US dollar according to the foreign currency rate determined by international credit card companies such as Master or Visa before being charged to Member in Korean currency, which shall be calculated based on the Telegraphic Transfer Offer Rate announced by an international settlement agency of BC Card as of the date when the transaction record is received by Bank.
3. (3) The amount charged in accordance with Paragraph 2 shall include overseas transaction fee and delay charge* imposed by international credit card companies such as Master or Visa on the Bank.
   * Delay Charge: a charge imposed by banks as interest until the payment date on transactions in foreign currencies.
4. (4) Failing to make payment as prescribed in Paragraph 1 due to insufficient fund in the payment account or lack of insufficient line of credit (including obligation acceleration in accordance with Article 17) shall incur default interest calculated using the following formula from the following day of the payment date to the date until the payment is made.
   * Default Interest = (Overdue Amount ? Interest included in the Overdue Amount) X Default Interest Rate X Number of Days in Arrears/365
5. (5) Bank shall inform the default interest rate mentioned in Paragraph 4 on a monthly basis. Changes in the rate shall take effect on the day after the change incurred.
6. (6) Member may refuse to make payment on transactions when receiving a sales voucher that does not include transaction authorization number or containing missing or misrepresented essential merchant information such as title of business, name of owner, address, and date of transaction, provided that Member shall notify Bank in writing of the intention to refuse payment along with evidence within 3 days of the transaction date.
7. (7) When monthly payment is not made in full, payment for charges including expenses, Annual Membership fee, late payment fee, finance charge, and interest shall be applied prior to outstanding balance.
8. (8) Member may make payment before payment date.
9. (9) Early payment of installment payment transaction shall be calculated by deducting installment payment charge for the remaining installment period from outstanding balance (monthly).
10. (10) Making payments prior to payment date may incur early redemption fee (excluding single-payment transaction) as determined by Bank.

Article 16 (Automatic Transfer Payment)

1. (1) Bank may automatically withdraw monthly payment from the designated automatic transfer account of Member (a new account when old account is closed for missing or stolen bank book) on the designated payment date as prescribed in Article 15 without presenting bank book or accounts receivable.
2. (2) When the automatic transfer account mentioned in Paragraph 1 has an extended line of credit, request for payment in excess of the account balance but within the line of credit shall be withdrawn according to creditor priority set forth by the issuer of the account.
3. (3) When the payment by automatic transfer is not made in full due to insufficient fund, Bank shall attempt to withdraw the outstanding balance (including default interest) every business day following the payment date or on specific dates determined by Bank in accordance with procedures described in Paragraph 1 and 2.
4. (4) Notwithstanding Paragraph 1 to 3, the amount deposited after the business hours of Bank may not be available for automatic transfer.
5. (5) When the payment date mentioned in Article 15.1 falls on Saturday or holidays, automatic transfer shall be processed on the first business day of Bank following the payment date.

Article 17 (Obligation Acceleration)

Obligations of Member shall automatically and immediately become due and payable in one of the followings, and in this case, Member shall repay the entire amount due without delay upon receiving the demand to repay from Bank.

1. 1. When Card is suspended (excluding temporary suspension and cases prescribed in Article 5.2) in accordance with Article 5
2. 2. When Member fails to make installment payment for two consecutive times and the outstanding balance exceeds 1/10 of the installment payment transaction amount.
3. 3. When Member migrates to a foreign country to be engaged in a specific occupation, marry a foreign citizen, or for other personal reasons.

Article 18 (Responsibilities of Member)

Primary Member shall be liable for any Card activities and applicable charges incurred by Member or Family Member. Liability of Family Member shall be limited to usage and maintenance of Family Card.

Chapter V Responsibilities of Member Concerning Fraudulent Card Use

Article 19 (Counter-claim and Responsibilities for Amount Due)

1. (1) Member may dispute a charge by submitting a written form to Bank within 14 days (60 days in case of transactions made overseas) of payment date to claim wrongfulness in the amount due (including cash advance, same as hereafter).
2. (2) When requested by Member, Bank will thoroughly examine circumstances surrounding card issuance, transaction date(s), payment details, and identify of cardholder, and notify Member of the finding in writing.
3. (3) Member may dispute the finding as prescribed in Paragraph 2 by filing for an arbitration to the FSS within 7 days after being informed by Bank of the finding, and may choose to withhold payment of disputed amount until the FSS makes a ruling. In this case, Bank shall not be allowed to register the default information of Member with Credit Information Collection Agencies for the reason of overdue payment of the disputed transaction.
4. (4) In the event that it is confirmed from the FSS arbitration that Bank should be held liable for its card issuance and use process, Bank shall pay the entire or a part of the amount due, provided that it will not do so in case when it decides to protest against the FSS decision and file a civil suit to the competent court.
5. (5) When FSS ruling holds Member liable for dispute, Bank may charge default interest for the entire duration of dispute considering that the amount due has been outstanding from the initial payment date, provided that it will not do so when Member decides to appeal the FSS ruling and file a civil suit to the competent court.

Article 20 (Reporting Lost or Stolen Card and Reimbursement)

1. (1) When Card is lost or stolen, Member shall report to Bank or BC Card without delay by phone or in writing. Bank or BC Card shall provide Member with the information to confirm the receipt of the report including name of staff receiving the report, report number, and time of report which shall be confirmed by Member.
2. (2) After following the procedure described in Paragraph 1, in case when Member intends to claim compensation for card use by a third party after loss or theft, he/she shall make the claim in writing using the form provided by Bank and BC Card. In this case, Member may claim the compensation for unauthorized card use by a third party that has occurred during the 60 days prior to the notification of loss or theft other than any of Paragraph 3 (Liability for unauthorized charges for transactions that require PIN as a form of identification such as cash advance, e-commerce, or credit card loan shall be prescribed by Article 22.) Reimbursement process fee of KRW 20,000 shall be imposed for each Card.
3. (3) Notwithstanding Paragraph 2, Member shall be held liable for unauthorized charges in the following events (excluding charges incurred after reporting lost or stolen Card).
   1. 1. Intentional misuse of Card
   2. 2. Failing to provide signature on Card, inappropriate management, lending, transfer, custody of Card, granting permission to use Card, offering Card as security, using Card to obtain unauthorized loan, and others
   3. 3. Unauthorized charges incurred by immediate family member(s) of Member including common-law partner or their engagement in activities described in Subparagraph 2
   4. 4. Failing to make immediate report without good reason even after acknowledging the loss or theft of Card
   5. 5. Without just cause, refusing to cooperate with Bank or BC Card in investigating unauthorized charges
   6. 6. Engaging in fraudulent card usage including but not limited to make fraudulent purchase transaction to obtain cash reimbursement
4. (4) In case when Bank investigation founds that the loss or theft report from Member set forth in Paragraphs 1 and 2 is intentionally falsified, Member shall compensate for damage inflicted on Bank and pay the investigation fee.

Article 21 (Responsibilities for Forged or Altered Card)

1. (1) Bank or BC Card shall be liable for unauthorized charges incurred by forged or altered Card.
2. (2) Notwithstanding Paragraph 1, Member shall be held liable for whole or part of unauthorized charges in one of the following events.
   1. 1. Disclosing PIN by intention or gross negligence
   2. 2. Transferring Card or obtaining loans by offering Card as collateral

Article 22 (Liability concerning PIN)

For transactions that require PIN as a form of identification such as cash advance, credit card loan, and e-commerce, Bank or BC Card shall not be held liable for any loss imposed on Member incurred by theft or loss of Card and other related events, as long as it has verified that the PIN registered to Bank is identical to the one provided for transactions, provided that it will not be the case in case when Member disclosed PIN under irresistible violence or physical threat against him/herself or family members, and in other cases that are not caused intentionally or by mistake of Member.

Chapter VI Privacy Protection

Article 23 (Reporting and Using Credit Information)

1. (1) Bank or BC Card shall exercise due care in managing credit information of Member obtained in relation to this Terms and Conditions in accordance with applicable laws, and may share the information with credit information collection agencies, Credit Bureau, credit information providers/users, and partners, provided that it shall not use the information for purposes other than those provided in applicable laws when this agreement is terminated by Member.
2. (2) When a dispute over unauthorized charge arises between Merchant and Member, Bank or BC Card may provide the information of Member to Merchant, and Member may request Merchant information in the same manner.
3. (3) In the event that Member has any of the followings, Bank or BC Card may provide the information to Credit Information Collection Agency or Credit Bureau, and the information may be used by the Credit Information Collection Agency or financial institutions partnering with Credit Bureau to initiate or maintain financial transactions.
   1. 1. Member fails to make monthly payment or incurs financial loss to Bank or BC Card.
   2. 2. Member inflicts loss on a third party by engaging in fraudulent use of Card in contempt of orderly market process or is convicted of violating the Specialized Financial Business Act
4. (4) Member reserves the right to request credit information collection agencies to access personal credit information and to amend inaccurate information. Detailed method and procedures for the request shall be in accordance with the Regulations on Supervision of Credit Information Business.

Article 24 (Reporting Changes of Information)

1. (1) Member shall report to Bank without delay of any changes in address, phone number, name of employer, department, job title, payment account, e-mail address, family status, etc., provided that it shall comply with the requirements provided by Bank in case of changing the bank account for automatic transfer.
2. (2) Member shall be held jointly liable for loss incurred by delayed or failed delivery of notification or documents issued by Bank or BC Card as result of failing to report changes as described in Paragraph 1, because communication to Member is deemed to take legal effect under an assumption that the message is delivered to Member as it was intended.

Chapter VII Supplementary Rules

Article 25 (Liabilities for Violations)

Bank, BC Card, or Member shall bear its own liabilities for losses arising from violation of this Terms and Conditions, and compensate the loss inflicted on the other party.

Article 26 (Consenting to Revision, etc.)

1. (1) Any revisions to this Terms and Conditions shall be notified to Member at least 14 days before the expected effective date, and revision shall be regarded as consented when Member does not object by the effective date.
2. (2) Any change in rates, fees, payment methods, installment periods and frequencies, and grace period must be announced on daily newspapers published nationwide, websites of Bank or BC Card, at headquarters and branches of the Bank and partners at the same time, in addition to the notification described in Paragraph 1.

Article 27 (Matters Not Explicitly Stated in the Terms and Conditions)

As for matters not explicitly stated in this Terms and Conditions and the interpretation of the Terms and Conditions, applicable laws or general commercial practices shall be applied.

Article 28 (Jurisdiction)

1. (1) Lawsuits with regard to transactions covered in this Terms and Conditions shall be brought to a court which has a jurisdiction over the address of Member or the branches of Bank or BC Card. Court which has jurisdiction over the address of headquarters or branches of Bank or BC Card that were assigned to manage debt collection for non-performing debt caused by liability of debtor shall preside over related disputes.
2. (2) Legal disputes in regard to installment payment transactions shall be brought to a court which has a jurisdiction over the address of Member, or a local court that has a jurisdiction over his/her location in case when he/she has no address, excluding cases when the address or location of Member is not explicit.

Article 29 (Language)

In the interpretation of this Terms and Conditions, preferentially Korean language Terms and Conditions shall be taken into consideration than translation into other language.