The following provisions shall be applicable to orders, sales, returns, compensation for damages, or liabilities with respect to the use of services of the “Shilla Internet Duty Free Shop” operated by Hotel Shilla Co., Ltd.

Article 1 (Purpose)

The purpose of these Terms of Use is to provide for rights, obligations, and liabilities of the Shilla Duty Free Cyber Mall operated by Hotel Shilla Co., Ltd. (hereinafter referred to as “Shilla Internet Duty Free Shop”) and users of the Internet-based services (hereinafter referred to as “Service(s)”) rendered by the Shilla Internet Duty Free Shop.

Article 2 (Definition)

• 1. “Shilla Internet Duty Free Shop” means a virtual business place established by Hotel Shilla Co., Ltd. to allow for transactions of goods or services (hereinafter referred to as “goods, etc.”) by using information communications devices including computers in order to provide the goods, etc. to users, which also may mean Hotel Shilla Co., Ltd. as the case may be.
• 2. “User(s)” means Members and non-members who get access to the Shilla Internet Duty Free Shop to use the Services provided by the Shilla Internet Duty Free Shop in accordance with these Terms of Use.
• 3. “Member(s)” means any person providing his or her personal information to the Shilla Internet Duty Free Shop and being registered as a member, who is constantly provided with the information of the Shilla Internet Duty Free Shop and may continue to use the Services provided by the Shilla Internet Duty Free Shop.
• 4. On-line S Rewards” means the points that Member(s)may earn to be provided with On-line S Rewards Services per these Terms of Use. Details for earning and using One-line S Rewards are stipulated at Article 4 and Articles 18-22 of these Terms of Use.
• 5.“On-line S Rewards Services” means the services provided by the Shilla Internet Duty Free Shop and, if the Member consented, On-line S Rewards Participating Stores to the Member,of which details are stipulated in Article 4 and Articles 18-22 of these Terms of Use. Provided however that, for some shops, brands or merchandise, On-line S Rewards Services may not be provided or redemption of On-line S Rewards may not be allowed.7. “On-line S Rewards Participating Stores” means the on-line stores of certain merchants who jointly provide On-line S Rewards Services pursuant to cooperation agreements with the Shilla Internet Duty Free Shop. On-line stores not directly operated by On-line S Rewards Participating Stores (e.g., airport’s online malls which On-line S Rewards Participating Stores participate with) are excluded. The On-line S Rewards Participating Stores will be notified at the Shilla Internet Duty Free Shop and are subject to change at the discretions of the Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores.
• 6. “Earned Points” means On-line S Rewards earned by a Member when the Member purchases merchandise or services at the Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores per the Shilla Internet Duty Free Shop’s policy or per the terms agreed between the Shilla Internet Duty Free Shop and On-line S Rewards Participating Stores.
• 7. “Redeemable Points” means the Earned Points which the Member can redeem to purchase goods and services at the Shilla Internet Duty Free Shop and On-line S Rewards Participating Stores as those Earned Points meet the requirements stipulated in Article 20 of these Terms of Use.
• 8. “Balance Points” means the remaining Redeemable Points after subtracting already redeemed Redeemable Points.

Article 3 (Specification and Revision of Terms of Use)

• 1. The Shilla Internet Duty Free Shop shall post on its initial service screen (in the full-page) the provisions of these Terms of Use, its trade name, the name of its representative, the address of location of the business place (including an address of the place where consumers’ complaints are to be handled), a telephone number, a fax transmittal number, an e-mail address, a business registration number, a telecommunication sales business reporting number, an authorized personal information manager, etc. in order to ensure that Users can easily see the information; provided, however, that the provisions of these Terms of Use may be seen by Users through the connected screen.
• 2. The Shilla Internet Duty Free Shop may change these Terms of Use to the extent that such a change does not violate relevant laws including the Act on Consumer Protection in Electronic Commerce Transactions, etc., the Regulation of Standardized Contracts Act, the Framework Act on Electronic Transactions, the Digital Signature Act, the Act on Promotion of Utilization of Information Communication Networks, etc., the Door-to-Door Sales Act, and the Consumer Protection Act.
• 3. In the event that the Shilla Internet Duty Free Shop revises these Terms of Use, it shall announce the revisions with the current Terms of Use on the first screen of the Shilla Internet Duty Free Shop specifying the date of application and a ground for revision from seven (7) days before the expected date of application until the day immediately preceding the date of application; provided, however, that where it revises the provisions of these Terms of Use in a way unfavorable to the Users, it shall do so with an advance grace period of at least not less than thirty (30) days. In this case, the Shilla Internet Duty Free Shop shall clearly compare the provisions before and after the revisions in order to ensure that the Users can easily see the provisions.
• 4. Where the Shilla Internet Duty Free Shop revises these Terms of Use, the Terms of Use as revised shall be applicable only to agreements entered into after the date of application, and the provisions of these Terms of Use before the revisions shall be applicable to agreements previously entered into; provided, however, that where a User who has entered into an agreement sends to the Shilla Internet Duty Free Shop its intention to be subject to the provisions of the Terms as revised within the public announcement period of the Terms of Use as set out under Section 3 and obtains consent thereto from the Shilla Internet Duty Free Shop, the Terms of Use as revised shall be applicable.
• 5. With respect to any matter not provided in these Terms of Use or any interpretation of these Terms of Use, the Act on Consumer Protection in Electronic Commerce Transactions, etc., the Regulation of Standardized Contracts Act, the guidelines and relevant laws for consumer protection in electronic commerce transactions, etc. prescribed by the Fair Trade Commission, or commercial practices shall be applicable.
• 6. The Shilla Internet Duty Free Shop shall seek confirmations from Users by providing an independent connected screen or popup screen, etc. before Users consent to these Terms of Use in order to ensure that Users can understand of the terms relating to withdrawal of offers, liabilities for shipping, conditions for refunds, etc. as set out in the provisions of these Terms of Use.

Article 4 (Provision and Change of Services)

• 1. The Shilla Internet Duty Free Shop may provide the following Services:
  • ① Providing information on goods or services and entering into purchase agreements;
  • ② Shipping goods or services for which purchase agreements are entered into;
  • ③ Performing other services specified by the Shilla Internet Duty Free Shop; and
  • ④ Providing the On-line S Rewards Services as below:
    • a) Earning On-line S Rewards
      Members may earn On-line S Rewards when purchasing merchandise or services at The Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores; and
    • b) Redeeming On-line S Rewards
      Members may purchase merchandise or services at the Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores using Redeemable Points.
• 2. In the event that goods or services are sold out or there is a change in the technical specifications, the Shilla Internet Duty Free Shop may change, remove or otherwise modify the goods or services to be provided in the future. In this case, it may immediately announce the changes to its goods or services and the date of provision thereof where the current goods or services are posted.
• 3. Where the services for which the Shilla Internet Duty Free Shop has entered into an agreement with a User to provide is changed because goods or services are sold out or there is a change in the technical specifications, the Shilla Internet Duty Free Shop shall immediately notify to the User.
• 4. In the prior Section, the User may request refund to the Shilla Internet Duty Free Shop.

Article 5 (Suspension of Services)

• 1. The Shilla Internet Duty Free Shop may temporarily suspend its provision of services where there is a ground of maintenance, replacement, breakdown, or transmission interruption of information communication facilities including computers.
• 2. The Shilla Internet Duty Free Shop may temporarily limit or suspend its provision of services where there is a force majeure event or an event beyond its control.
• 3. In the event that the Shilla Internet Duty Free Shop is unable to provide services on a ground of conversion of business items, renunciation of businesses, a combination between companies, etc., it shall notify users thereof in a way specified in Article 9 and compensate consumers according to the conditions presented by the Shilla Internet Duty Free Shop; provided, however, that where the Shilla Internet Duty Free Shop does not give a notice of the criteria for compensation, etc., it shall give users relevant mileage or accumulated amounts, etc. with tangible objects or in cash amounts equal to the currency values used at the Shilla Internet Duty Free Shop.

Article 6 (Membership Subscription, Re-registration)

• 1. A User may apply for membership subscription by entering his or her personal particulars onto a subscription form prescribed by the Shilla Internet Duty Free Shop and then indicating his or her intention to consent to these Terms of Use.
• 2. The Shilla Internet Duty Free Shop shall register the Users as Members who have applied for membership subscription in Section 1, save where a User falls under any of the following cases provided however that, re-registering Member may not receive benefits awarded for a newly registered Member:
  • ① Where an applicant for membership has lost his or her membership status under Article 7 Section 3 of these Terms of Use or an applicant for membership has obtained financial gains e.g., receiving vouchers, coupons, points, S Rewards, event gifts, etc. through repeated withdrawal and re-registration, including by the use of another’s name ;
  • ② Where an applicant for membership has entered false information, failed to enter relevant information, or entered incorrect information in the subscription form;
  • ③ Where the Shilla Internet Duty Free Shop otherwise finds it seriously difficult to register an applicant for membership due to its technical conditions; and
  • ④ The services under agreements for membership subscription or electronic commerce transactions shall be provided only to persons over fourteen (14) years old, however that if the Member enrolled in jurisdictions other than Korea through QR code at Off-line S Rewards Participating Stores, enrolled jurisdiction's applicable laws shall apply for this Subparagraph ④.
• 3. An agreement for membership subscription shall be formed when approval by the Shilla Internet Duty Free Shop arrives to a relevant member.
• 4. In the event that there is a change in a member’s registration information, the Member shall immediately notify the Shilla Internet Duty Free Shop of the change(s) by e-mail, etc.

Article 7 (Withdrawal from Membership and Disqualification, Restriction of Re-registration)

• 1. Any Member may at any time request the Shilla Internet Duty Free Shop to withdraw from his or her membership, and the Shilla Internet Duty Free Shop shall immediately handle the request for withdrawal from membership; provided, however, that where a Member withdraws from membership in each of the following cases, the procedures specified below shall be required and a User’s withdrawal from membership may be restricted in the ways as provided for below:
  • ① Where a Member unlawfully or expediently receives economic profits for discount coupons, event benefits, etc. provided by the Shilla Internet Duty Free Shop, such as repeatedly terminating membership at will, engaging in unlawful or dishonest activities such as misappropriating names, etc., or requests the Shilla Internet Duty Free Shop to withdraw from his or her membership for wrongful purposes, such as the issue or use of coupons by membership re-subscription after withdrawal from membership, the Shilla Internet Duty Free Shop shall handle the request for withdrawal from membership after cancellation orders
  • ② Where a Member’s deposits at the Shilla Duty Free Shop or a Member’s points deposited by converting gift certificates to points the Member can use only at the Shilla Internet Duty Free Shop are less than a certain amount. As upon request for withdrawal from membership by a Member, such deposits and points may cease to exist,the Shilla Internet Duty Free Shop shall handle the Member’s request for withdrawal from membership after verifying his or her intention in advance
  • ③ If a Member requests membership termination when his or her S Rewards are displayed as minus, such Member’s membership termination may be processed only with Shilla Internet Duty Free’s approval or if the Member pays off the amount equivalent to the Member’s minus point (1 minus point is equivalent to USD 0.001 and Shilla Internet Duty Free may demand for payment by minimum USD 1 or KRW 1,000).
• 2. Where a Member falls under each of the following cases, the Shilla Internet Duty Free Shop may restrict or suspend his or her membership status:
  • ① Where a Member has registered false information in applying for membership subscription;
  • ② Where a Member did not pay relevant amounts for goods, etc. that he or she had purchased by using the Shilla Internet Duty Free Shop, or any other amounts payable by the member with respect to the use of the Shilla Internet Duty Free Shop;
  • ③ Where a Member endangers orders in electronic commerce transactions by obstructing other Users’ use of the Shilla Internet Duty Free Shop or misappropriating the information, etc.;
  • ④ Where a Member engages in activities prohibited under the laws or these Terms of Use or against good public morals by using the Shilla Internet Duty Free Shop;
  • ⑤ Where a Member engages in the activities specified in Article 7 Section 1 Subparagraph ①;
  • ⑥ Where a Member uses his or her membership service in an unlawful manner or for an unlawful purpose;
    In this provision, “unlawful manner” or “unlawful purpose” includes “Unauthorized Earning” and “Unauthorized Redemption.” “Unauthorized Earning”, as it relates to the On-line S Rewards Services, means the activity of obtaining and/or redeeming points without making the corresponding purchases at the Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores, e.g., through system tempering or submission of a third party’s receipts or faked receipts, etc. Unauthorized Redemption”, as it relates to the On-line S Rewards Services, means redemption of On-line S Rewards earned through “Unauthorized Earning” or redemption of a certain Member’s points by any other person.
    * On-line S Rewards earned or any other benefits obtained through Unauthorized Earning or Unauthorized Redemption shall be forfeited upon notification of disqualification, for which the Member cannot claim any rights. If purchase was made by unauthorized points, the Member or the persons who engage in the Unauthorized Earning or Unauthorized Redemption may be subject to civil claims or criminal charges.
    * The Member will be given the opportunity to explain that his or her Unauthorized Earning or Unauthorized Redemption was not intentionally or negligently made and if the Company finds such explanation reliable, the Shilla Internet Duty Free Shop may reinstate such Member at its discretion. Obtaining financial gains, e.g., receiving vouchers, coupons, points, S Rewards, event gifts, etc. through repeated withdrawal and re-registration, including by the use of another person’s name, shall be deemed to use of member services in an unlawful manner or for an unlawful purpose under Subparagraph ⑥ above.
  • ⑦ Where a Member habitually cancels his/her purchase or returns the used product or asks for compensation for products or services without any defect;
  • ⑧ Where a Member habitually asks for compensation that exceeds the standards set out in 『Criteria for the Resolution of Consumer Disputes』without any justifiable reason.
  • ⑨ Where a Member spreads false information relating to the Shilla Internet Duty Free Shop
  • ⑩ Where a Member uses violence or abusive language to staffs in the process of using the Shilla Internet Duty Free Shop.
  • ⑪ Where there is a justifiable reason to limit or disqualify his/her Membership
• 3. After the Shilla Internet Duty Free Shop has restricted or suspend a Member’s membership status, where the Member repeatedly engages in the same activities not less than twice, or fails to take a relevant corrective measure within thirty (30) days, the Shilla Internet Duty Free Shop may forfeit his or her membership status.
• 4. Before the Shilla Internet Duty Free Shop forfeits a Member’s membership status, , it shall notify to the Member, and the Member shall be given an opportunity to explain a relevant ground for not less than thirty (30) days.
• 5. A member, whose membership was forfeited under Section 4 of this article, may be prohibited from re-registration of Membership per Section 2 of Article 6.

Article 8 (On-Offline Memberships)

• 1. Any Member who has subscribed to membership of the Shilla Internet Duty Free Shop may receive membership services by simultaneously being subscribed to the Shilla Duty Free Membership operated by the Hotel Shilla Co., Ltd. Provided, however, Members who opts not to provide his/her passport information will receive limited Shilla Duty Free Membership services.
• 2. Any member of the Shilla Duty Free Membership may receive following services provided by Hotel Shilla Co., Ltd. and its affiliates:
  • ① Services for accumulations: the member may accumulate Off-line S Rewards by purchasing products from the off-line Shilla Duty Free Shop, and apply Off-line S Rewards and On-line S Rewards accumulated in the member grade system prescribed by Hotel Shilla Co., Ltd.;
  • ② Services of business partners: the member may use the services of discounts, free use, etc. provided by Hotel Shilla Co., Ltd. and its business partners; and
  • ③ Other services: the member may use additional services developed and provided by Hotel Shilla Co., Ltd. and its business partners.
  • ④ The services described at Subparagraph ② and ③ above only apply in The Shilla Duty Free stores within Korea.
  • ⑤ Members may be provided with Off-line S Rewards Services as below:
    Earning Off-line S Rewards Members may earn Off-line S Rewards when purchasing merchandise or services at off-line Shilla Duty Free or Off-line S Rewards Participating Stores; and Redeeming Off-line S Rewards Members may purchase merchandise or services at off-line Shilla Duty Free or Off-line S Rewards Participating Stores using redeemable Off-line S Rewards.
• 3. As for withdrawal from membership, disqualification, etc., its effect shall be applicable to both the Shilla Internet Duty Free Shop and the Shilla Duty Free Membership, and for the detailed procedures, Article 7 (Withdrawal from Membership and Disqualification) of these Terms of Use shall be applicable.

Article 9 (Notification to Members)

• 1. Where the Shilla Internet Duty Free Shop gives notice to a Member, it may do so by using the e-mail addresses provided by the Member to the Shilla Internet Duty Free Shop.
• 2. Where the Shilla Internet Duty Free Shop gives notice to unspecified and many Members, it may post the notice on the bulletin board of the Shilla Internet Duty Free Shop for not less than one (1) week instead of giving individual notices to the Members. Provided, however, that the Shilla Internet Duty Free Shop may give an individual notice to a Member if a relevant notice may have a significant effect on the member’s own transactions.

Article 10 (Application for Purchase)

Out of the Users of the Shilla Internet Duty Free Shop, only those scheduled to depart from Korea may apply for purchase, and they shall do so in the following or similar ways on the Shilla Internet Duty Free Shop: Provided, however, that foreigners and Koreans with permanent residence overseas shall not have a limit of purchase, but the limit of purchase for Koreans nationals residing in Korea as required under relevant laws shall be US$3,000 (including one bottle of alcohol of not more than 1ℓ and 200 cigarettes). When a User applies for purchase, the Shilla Internet Duty Free Shop shall provide each of the following information to ensure that the User can easily understand the information (however, as for Members, subparagraph 2 or 5 may not apply):

• ① How to search and select goods, etc.;
• ② How to enter name, address, telephone number, e-mail address (or mobile phone number), etc.;
• ③ Passport number, the expected date of departure, the flight number or the ship number, the departing airport or shipping port;
• ④ How to verify the provisions of relevant terms and conditions, restricted services for the right to withdraw offers, and the provisions for payment of shipping fees, installation fees, etc.;
• ⑤ How to indicate a Member’s consent to these Terms of Use, and verify or reject the provisions of the above-mentioned subparagraph 4 (e.g., mouse-clicking); and
• ⑥ How to apply for purchase of goods, etc. and verify the application(s), consent to the verifications by the Shilla Internet Duty Free Shop, and select a payment means.

Article 11 (Formation of Agreement)

• 1. In each of the following cases, the Shilla Internet Duty Free Shop may not accept an application for purchase under Article 10; provided, however, that where the Shilla Internet Duty Free Shop enters into an agreement with a minor, it shall notify that the minor or his or her legal representative may cancel the agreement unless it obtains consent from his or her legal representative:
  • ① Where an applicant for purchase has entered false information, failed to enter relevant information, or entered incorrect information;
  • ② Where a minor purchases goods or services prohibited under the Youth Protection Act, including cigarettes, alcohol; or
  • ③ Where the Shilla Internet Duty Free Shop otherwise finds that its approval of an application for purchase may cause a serious technical difficulty to the Shilla Internet Duty Free Shop
• 2. An agreement shall be deemed formed when approval by the Shilla Internet Duty Free Shop arrives to a relevant user in the form of receipt confirmation notice under Article 13 Section 1.
• 3. The Shilla Internet Duty Free Shop’s manifestation of intention to approve shall include the information of whether it is possible to verify a user’s application for purchase or sell goods or services, how to correct or cancel, etc. the application for purchase.

Article 12 (Payment Method)

Users may make payments for goods or services purchased at the Shilla Internet Duty Free Shopby the following ways; provided, however, that the Shilla Internet Duty Free Shop may not collect additional fees for the User’s use of such payments of goods, etc. with respect to users’ payment methods:

• ① Various account transfers, including phone banking, the Internet banking, mail banking;
• ② Various types of card payments, including prepaid card, debit card, credit card;
• ③ Online deposits without bankbooks;
• ④ 'Payment with the points provided with the Shilla Internet Duty Free Shop (More information on how to use the points are posted under “My Shilla” page on http://www.shilladfs.com/estore/kr/en)
• ⑤ Payment by gift certificates for which an agreement is entered into with the Shilla Internet Duty Free Shop, or by any other gift certificates and points acceptable at the Shilla Internet Duty Free Shop; (More information on how to use gift certificates are posted on the following site: http://www.shilladfs.com/estore/kr/en > Customer Service > Beginner Payment Information)
• ⑥ Payment by other electronic payment method, etc.

Article 13 (Notification of Receipt Confirmation, and Change or Cancellation of Application for Purchase)

• 1. Where a User applies for purchase, the Shilla Internet Duty Free Shop shall give the User a notice of receipt confirmation.
• 2. If a User has received a notice of receipt confirmation, where there is a discrepancy in his or her manifestation of intention, etc., the User may request the Shilla Internet Duty Free Shop to change or cancel the application for purchase immediately after receiving the notice of receipt conformation, and upon request by a User before shipping, the Shilla Internet Duty Free Shop shall without delay handle the matter according to the request; provided, however, that where a User has paid amounts, the provisions of withdrawal of offers, etc. in Article 16 shall be applicable.

Article 14 (Delivery of Goods, etc.)

• 1. The Shilla Internet Duty Free Shop shall specify shipping means, payer of shipping costs by means, the shipping period by means, etc. with respect to the goods purchased by users.
• 2. As for delivery of goods, a relevant pick up location shall be designated. Goods may be delivered to a user after i) a user clears his/her examinations by the customs office and the Department of Justice at the airport; and ii) his/her identification is verified by an authorized personnel of the Shilla Duty Free Shop at the designated pick-up location by presenting his/her passport, an exchange ticket, and a boarding pass. Pick-Up location of goods will be announced on the order confirmation page and at each departure area.

Article 15 (Refunds)

• 1. When the Shilla Internet Duty Free Shop may not be able to deliver or provide the goods applied for purchase by a User because the goods are sold out, etc., it shall without delay give the User a notice of the ground(s), and if the Shilla Internet Duty Free Shop has previously received amounts for goods, etc., it shall give a refund or take measures necessary to give a refund within two (2) business days from the date of its receipt of the amounts.
• 2. Where the total amounts of goods to be exchanged or refunded are in excess of US$800, refunds or exchanges may be provided only in the following cases:
  • ① Where a User makes a request for exchange or refunds directly through an international mail from a foreign country; or
  • ② Where a User has declared relevant goods to the customs office upon arrival and the goods were brought to the customs office.
• 3. In each of the following cases, a User may cancel its order within three (3) months after his or her receipt of the goods or within thirty (30) days after the date when he or she knew or should have known it:
  • ① Where the shipped goods are different from the content of a relevant order or the information provided by the Shilla Internet Duty Free Shop;
  • ② Where the shipped goods are not conforming; or
  • ③ Where the goods have not been delivered to a purchaser on the date of departure (in this case, there shall not be restrictions on the cancellation period).

Article 16 (Withdrawal of Offers, etc.)

• 1. A User who has entered into an agreement for purchase of goods, etc. with the Shilla Internet Duty Free Shop may withdraw his or her offer within thirty (30) days from the date of his or her receipt of the purchased goods.
• 2. Where a User has received the goods, etc., in each of the following cases, he or she may not return or exchange the goods:
  • ① Where the goods were lost or damaged by the User’s fault (however, the User may withdraw his or her offer where the User has caused damage to packing in order to verify the content of the goods, etc.);
  • ② Where the value of the goods, etc. has been substantially reduced by use or partial consumption by the User;
  • ③ Where the value of the goods, etc. has been substantially reduced to the extent that it is difficult to resell the goods, etc. because of the passage of time;
  • ④ Where if it is possible to replace the goods with the goods of the same nature, and where the User has caused damage to the packaging of the original goods, etc.; or
  • ⑤ Where if a Korean national who reside in Korea has purchased goods, etc. in excess of the purchase limit of US$3000 and the duty-free limit of US$800, and the goods, etc. was seized by the customs office, or he or she has not received the goods, etc. due to a contravention of applicable laws or regulations.
• 3. As for Section 2 Subparagraph 2 or 4, if the Shilla Internet Duty Free Shop does not in advance specify the restrictions on withdrawal of offers, etc. or take measures to provide trial products, etc., a User’s withdrawal of offers, etc. shall not be restricted.

Article 17 (Consequences of Withdrawal of Offers, etc.)

• 1. Where a User has returned the goods, etc. to the Shilla Internet Duty Free Shop, the Shilla Internet Duty Free Shop shall give the User a refund of the payment made for the goods, etc. within three (3) business days. In this case, when the Shilla Internet Duty Free Shop delays in giving a relevant user refunds for the goods, etc., it shall pay the User an interest for delay calculated by multiplying the delay period by a delay interest rate prescribed by the Enforcement Decree of the Act on Consumer Protection in Electronic Commerce Transactions, etc.
• 2. Where the Shilla Internet Duty Free Shop refunds the payments, if a User has made a payment for the goods, etc. by payment means of credit card or any other payment means processed by third parties, the Shilla Internet Duty Free Shop shall without delay request the the party providing the payment means to discontinue or cancel the payment request for the goods, etc.
• 3. As for withdrawal of offers, etc. a relevant User shall pay costs necessary to return the purchased goods, etc. The Shilla Internet Duty Free Shop shall not request a User to provide a penalty or compensate for damages on the ground of the User’s withdrawal of offer, etc.; provided, however, that where tthe goods, etc. are different from labeling or advertising or a User withdraws his or her office as services provided different from as agreed, the Shilla Internet Duty Free Shop shall pay costs necessary to return the purchased goods, etc.
• 4. Where a User has paid shipping costs in receiving the goods, etc., the Shilla Internet Duty Free Shop shall clearly indicate which party is required to pay the shipping costs when the User withdraws his or her offer.

Article 18 (Using and Managing On-Line S Rewards)

• 1. If the Member wishes to use On-Line S Rewards Services, the Member must input his or her membership number on the webpage.
• 2. On-Line S Rewards are awarded based on a certain percentage of the amounts spent at the Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores after membership enrollment. Member may use Redeemable Points to purchase merchandise or services at the Shilla Internet Duty Free or On-line S Rewards Participating Stores or use other services in accordance with these Terms of Use. If the Member wishes, the Member’s On-line S Rewards are transferred to Off-Line S Rewards and vice versa.
• 3. Members earn On-line S Rewards based on a certain percentage of its purchase amount (on the basis of actual purchase amount, i.e., excluding the use of points, rewards, S Rewards, etc.) spent at the Shilla Internet Duty Free Shop or On-Line S Rewards Participating Stores. The percentage shall be determined by the Shilla Internet Duty Free Shop and may be subject to agreement betweenthe Shilla Internet Duty Free Shop and the On-line S Rewards Participating Stores. Decimal On-line S Rewards will be rounded down.
• 4. On-line S Rewards are awarded for the purchases made after membership enrollment and provision of relevant consents for the use of personal information. In principle, On-line S Rewards are earned at the time purchase of merchandise or services is made. If the Member misses earning On-line S Rewards, the Shilla Internet Duty Free Shop will credit the Member’s account with the requisite numbers of On-Line S Rewards if the Member presents sales receipt and proof of payment to the Shilla Internet Duty Free Shop’s Customer Service Center in person or by fax within 1 year after the date of purchase.
• 5. If Earned Points are cancelled for any reason including return, refund or cancellation of the Member’s purchase, such cancelled On-line S Rewards shall automatically be deducted from the Member’s account. If the remaining On-line S Rewards are fewer than the cancelled On-line S Rewards, his or her balance On-line S Rewards will be displayed as minus, and be set-off with On-line S Rewards earned by the Member henceforth. However, if off-setting is not possible, e.g., if the Member cancels purchase after withdrawal from membership, Shilla Internet Duty Free Shop may demand for payment of such minus point by minimum USD 1 or KRW 1,000 and 1 minus Point shall be equivalent to USD 0.001.
• 6. The Shilla Internet Duty Free Shop may refuse award of On-line S Rewards if the Member requests to utilizeOn-line S Rewards and other promotions, discounts, loyalty program or rewards program concurrently for a single purchase. If requested by the Shilla Internet Duty Free Shop, the Member should choose only one discount, promotion, loyalty program or rewards program to use for the relevant purchase.
• 7. Normally, within 48 hours from pick-up of merchandise, granted On-line S Rewards become Earned Points.
• 8. Any and all taxes arising from or in connection with the earning of On-line S Rewards shall be borne by Members.

Article 19 (Error Modification, Cancellation & Expiry of On-Line S Rewards)

• 1. Member can request correction of On-line S Rewards earned incorrectly, and the Shilla Internet Duty Free Shop will credit the Member’s account with the missing points within 30 days after the request of correction, if the Member presents sales receipt and proof of payment within 1 year after the date of error occurred.
• 2. If the Shilla Internet Duty Free has reasonable reasons (e.g., for inevitable business needs due to unpredictable business risks, etc.), the Shilla Internet Duty Free Shop may cancel properly awarded On-line S Rewards with no later than 6 months prior notice, which will be cancelled upon expiration of such 6 month term, provided however that the Shilla Duty Free Shop shall provide other forms of rewards points or gift voucher of equivalent value. Cancellation due to negligence or fault of the Shilla Internet Duty Free Shop or On-line S Rewards Participating Stores shall also be compensated through other forms of points or gift voucher of equivalent value.
• 3. Earned Points will expire 60 months after the earned date which shall be forfeited automatically on a first in first out basis if the Member does not use Earned Points before expiration. Provided however that On-line S Rewards granted per event (promotion) shall expire as notified at the time of event (promotion). On-line S Rewards earned through purchase of goods are transferrable to a third person through gifting function before their expiry, which can be used by the transferee before expiry, provided however in the case that the transferred On-line S Reward is set to expire within less than 6 months at the time of transfer, the expiry date shall be extended by 6 months. On-line S Rewards granted per event (promotion) is not transferrable. Transferred On-line S Rewards cannot be re-transferred.
• 4. Upon the expiry of any On-line S Rewards, the Shilla Duty Free Shop will notify the Member by e-mail in relation to their expiry. If notification fails due to the Member providing an incorrect e-mail address, the responsibility is on the Member.

Article 20 (Using On-line S Rewards)

• 1. Member may redeem Redeemable Points for the purchase of merchandise or services at the Shilla Internet Duty Free Shop or On-line Participating Stores by presenting membership number or in accordance with other procedures determined by the Shilla Internet Duty Free Shop. When redeeming Off-line S Rewards, 10 points are calculated as one unit, i.e., Off-line S Rewards are redeemable on a 10 points basis only.. If a Member wishes, the Member’s On-line S Rewards are transferrable to Off-line S Rewards and vice versa.
• 2. 1,000 points of On-line S Rewards are equivalent to USD 1. If the purchase is made in a currency other than USD, the Shilla Internet Duty Free Shop may apply exchange rate per its internal policy (for all instances including but not limited to earning, using, deducting, claiming for payment when minus point Member withdraws from membership, etc.). The Shilla Internet Duty Free Shop may change exchange rate per Article 3, Section 3 of these Terms of Use. The new exchange rate shall be effective on the date as provided in the Shilla Duty Free Shop’s notice.
• 3. On-line S Rewards shall not be sold, transferred, assigned, mortgaged, pledged or subject to any other encumbrances, unless otherwise authorized by the Shilla Internet Duty Free Shop (e.g.through gifting function described at Article 19, Section 3).
• 4. If a customer is not registered with the Shilla Internet Duty Free Shop, the Shilla Internet Duty Free Shop may reject the provision of On-line S Rewards Services to the customer.
• 5. Any taxes and expenses relating to the use of On-line S Rewards shall be responsibility of Member.

Article 21 (Withdrawal of Membership and Disqualification)

• 1. Member who wishes to withdraw shall request withdrawal as described at Section 1 of Article 7 of these Terms of Use. If the Member has Balance Points, Member may use Balance Points within 30 days from the date of withdrawal request and Balance Points not used during such period shall be forfeited.
• 2. Member who was notified of disqualification in accordance with Article 7, Section 2 of these Terms of Use, Member may use Balance Points, if any, within 30 days from the date of disqualification notice and Balance Points not used during such period shall be forfeited.
• 3. Notwithstanding Section 2 of this Article 21, Unauthorized On-Line S Rewards of a Member who was notified of disqualification per Article 7, Section 2, Subparagraph ⑥ of these Terms of Use will be forfeited upon notification of disqualification, and the Member has not rights or entitlement in relation to the Unauthorized On-line S Rewards.

Article 22 (Termination of On-Line S Rewards Services)

• 1. For reasons such as merger, consolidation, amalgamation of the Shilla Internet Duty Free Shop or any reasons not within the control of The Shilla Internet Duty Free, the Shilla Internet Duty Free Shop may terminate On-line S Rewards Services without prior notice.
• 2. The Shilla Internet Duty Free Shop may terminate On-line S Rewards Services upon 3 months prior notice to Members per Article 3, Section 3 of these Terms of Use. Balance Points unused until termination of On-line S Rewards Service shall be compensated per the last sentence Article 19, Section 2.

Article 23 (Protection of Personal Information)

• In order to provide services smoothly, the company safely processes and protects users' personal information in accordance with laws and regulations related to personal information protection. Details related to the processing and protection of personal information can be found in the personal information processing policy. If a member subscribes through a QR code from an offline S Rewards affiliate located outside of Korea, the company collects personal information in compliance with the laws and regulations of the relevant country. In this case, please refer to the relevant country's consent form for personal information use for more information.

Article 24 (Duties of the Shilla Internet Duty Free Shop)

• 1. The Shilla Internet Duty Free Shop shall not engage in any activity prohibited under the laws or these Terms of Use or against good public orders and morals, and use its efforts to provide goods or services continuously and stably as set forth in these Terms of Use.
• 2. The Shilla Internet Duty Free Shop shall have a security system to protect Users’ personal information (including credit information) in order to ensure that users can safely use the Internet services.
• 3. When the Shilla Internet Duty Free Shop causes damagers to Users by engaging in unreasonable labeling or advertising activities as prescribed in Article 3 of the Fair Labeling and Advertising Act with respect to goods or services, it shall compensate for damages.
• 4. The Shilla Internet Duty Free Shop shall not send advertising e-mails for profitable purposes that Users do not want to receive.

Article 25 (Duties of Members for ID and Password)

• 1. Members shall be responsible for managing their IDs and passwords except for the case of Article 18.
• 2. Members shall not cause a third party to use their IDs and passwords.
• 3. Where a Member has become aware that his or her ID or password was stolen or is being used by a third party, he or she shall immediately notify the Shilla Internet Duty Free Shop thereof, and if there is a direction by the Shilla Internet Duty Free Shop, he or she shall comply with the direction(s).
• 4. Where a Member has subscribed to membership through a social network service, when his or her ID or password is disclosed, the Shilla Internet Duty Free Shop shall not be held liable for any guarantee on a relevant transaction unless the Shilla Internet Duty Free Shop is at fault.

Article 26 (Duties of Users)

Users shall not engage in any of the following activities:

• 1. Registering false information in applying for membership or otherwise providing inaccurate information;
• 2. Misappropriating information of third parties;
• 3. Changing information posted on the Shilla Internet Duty Free Shop;
• 4. Sending or posting information (computer programs, etc.) other than the information specified by the Shilla Internet Duty Free Shop;
• 5. Infringing upon intellectual property rights of the Shilla Internet Duty Free Shop or other third parties, such as copyrights;
• 6. Undermining reputations or obstructing works for the Shilla Internet Duty Free Shop or other third parties; or
• 7. Disclosing or posting on the mall any obscene or violent messages, videos, voices, or any other information against public order and morality.

Article 27 (Relationship between the Connecting Shilla Internet Duty Free Shop and the Connected Shilla Internet Duty Free Shop)

• 1. Where the high-ranked Shilla Internet Duty Free Shop and the low-ranked Shilla Internet Duty Free Shop are connected with a hyperlink, etc. including letters, pictures, video pictures, the former shall be referred to as the connecting Shilla Internet Duty Free Shop (a website) and the latter as the connected Shilla Internet Duty Free Shop (a website).
• 2. Where the connecting Shilla Internet Duty Free Shop specifies on the initial screen of the Shilla Internet Duty Free Shop or on a popup screen at the time of connection its intention that it shall not be liable for any guarantee on transactions made with users by the goods, etc. independently provided by the connected Shilla Internet Duty Free Shop, it shall not be held liable for guarantees on the transactions.

Article 28 (Ownership of Copyrights and Restrictions on Use)

• 1. The Shilla Internet Duty Free Shop shall have the ownership to copyrights on the works prepared by the Shilla Internet Duty Free Shop and any other intellectual property rights.
• 2. Users shall not reproduce, alter, send, publish, distribute, broadcast, or use for profitable purposes in any other way, or case a third party to use the information to which the Shilla Internet Duty Free Shop has intellectual property rights out of the information they have obtained in using the Shilla Internet Duty Free Shop, without prior approval by the Shilla Internet Duty Free Shop.
• 3. Where the Shilla Internet Duty Free Shop uses any copyrights to which a User has the ownership under these Terms of Use, it shall notify the User thereof.

Article 29 (Dispute Resolution)

• 1. The Shilla Internet Duty Free Shop shall establish and operate a damages compensation organization to reflect reasonable opinions or complaints presented by Users and handle compensation for the damages.
• 2. The Shilla Internet Duty Free Shop shall first handle complaints and opinions presented by Users; provided, however, that where it is difficult to handle a matter promptly, the Shilla Internet Duty Free Shop shall immediately notify Users of the ground(s) and a schedule for handling.
• 3. Where a User applies for remedy for damages with respect to an electronic commerce transaction related dispute between the Shilla Internet Duty Free Shop and the User, the User may comply with mediation by the Fair Trade Commission or a dispute mediation authority requested by a city or province governor.

Article 30 (Jurisdiction and Governing Laws)

• 1. A lawsuit relating to an electronic commerce transaction related dispute arising between the Shilla Internet Duty Free Shop and a User shall be based on the User's address at the time of lawsuit, but if there is no relevant address, it shall be heard by a competent district court of exclusive jurisdiction where the User is domiciled. However, where the User's address or domicile is not Korea or unclear at the time of lawsuit, such a lawsuit shall be brought to a competent court of jurisdiction under the Civil Procedure Act.
• 2. An electronic commerce transaction related lawsuit brought between the Shilla Internet Duty Free Shop and a User shall be governed by the Korean laws.

These Terms of Use are effective as of Dec 27th, 2019 (Revised on Dec 27th, 2019)