Article 1. (Purpose)

The purpose of the terms and conditions contained herein (the “Terms of Use”) is to provide for the rights and duties of the Shilla Duty Free Members and the Hotel Shilla Co., Ltd. (“the Company”), and relevant procedures, etc. with respect to the Shilla Duty Free Membership use of the membership services provided by the Company.

Article 2. (Definition)

• ① The term “The Shilla Duty Free Membership” (“Member(s)”) denotes a person who meets the eligibility requirements to become a Company’s Member, hereby agrees to the “Terms of Use” and the “Written Consent for the Provision and Use of Personal Information,” and receives the member barcode and membership card by submitting a membership application.
• ② The term “The Shilla Duty Free Membership Services” denotes the services that the Company and the Company’s Business Partners (the“Business Partners”) provide for Members, and the content thereof is prescribed in Article 3 herein.
• ③ The term “Membership Card” (the “Card”) denotes the card issued by the Company to allow Members to use the services..
• ④ The term “Off-line S Rewards” refers to points that Member(s) may earn to be provided with Off-line S Rewards Services per these Terms of Use. Details for earning and using Off-line S Rewards are stipulated at Article 3 and Chapter 3 of these Terms of Use.
• ⑤ The term “Off-line S Rewards Services” means the services provided by the Company’s Off-line Shilla Duty Free and, if the Member Consented, Off-Line S Rewards Participating Stores, of which details are stipulated in Article 3 and Chapter 3 of these Terms of Use. Provided however that, for some shops, brands or merchandise, Off-line S Rewards Services may not be provided or redemption of Off-line S Rewards may not be allowed.
• ⑥ The term “Off-line S Rewards Participating Stores” means the offline stores of certain merchants who jointly provide Off-line S Rewards Services pursuant to cooperation agreements with the Company. The Off-line S Rewards Participating Stores are Beauty & You The Shilla Duty Free at Hong Kong Chek Lap Kok International Airport, The Shilla Duty Free at Singapore Changi Airport, The Shilla Duty Free at Macau Airport and other partners or stores to be added in the future, which are subject to change per the Company or the Off-line S Rewards Participating Stores’ discretions.
• ⑦ The term “Earned Points” means Off-line S Rewards earned by a Member when the Member purchases merchandise or services at the Company’s Off-line Shilla Duty Free or Off-line S Rewards Participating Stores per the Company’s policy or per the terms agreed between the Company and Off-line S Rewards Participating Stores.
• ⑧ The term “Redeemable Points” means the Earned Points which the Member can redeem to purchase goods and services at the Company’s Off-line Shilla Duty Free and Off-line S Rewards Participating Stores as those Earned Points meet the requirements stipulated in Article 9 of these Terms of Use.
• ⑨ The term “Balance Points” means the remaining Redeemable Points after subtracting already redeemed Redeemable Points.

Article 3. (The Shilla Duty Free Membership Services)

The Shilla Duty Free Membership Services are as follows, and a customer, who desires to use the services, shall undergo all procedures set out in these Terms of Use to become a Member:

• ① Members may accumulate Off-line S Rewards by purchasing products at the Company, and accrue Off-line S Rewards and On-line S Rewards accumulated in accordance with the member rating system prescribed by the Company.
• ② Members under the Business Partners’ Service Programs may use the discount or free-use services, among others, provided by Hotel Shilla and the Business Partners.
• ③ Other Services: The Company and the Business Partners may develop additional services to provide to Members.
• ④ The services described at sections 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:
  • a) Earning Off-line S Rewards
    Members may earn Off-line S Rewards when purchasing merchandise or services at the Company’s Off-line Shilla Duty Free or Off-line S Rewards Participating Stores; and
  • b) Redeeming Off-line S Rewards
    Members may purchase merchandise or services at the Company’s Off-line Shilla Duty Free or Off-line S Rewards Participating Stores using Redeemable Points.

Article 4. (Registration of Membership, Issuance of Card and Re-registration)

• ① Any customer, who desires to register(re-register) as a Member, applies for membership by first presenting his/her passport in person, completing a membership application of the Company, and agreeing to the Terms of Use and the “Written Consent to Collection, Provision and Use of Personal Information.” The Company, then, reviews such application based on its criteria, and issues the Card to the applicant who meets such criteria. Provided however that, some customers may be restricted from re-registration or may not receive benefits awarded for a newly registered Member.
• ② Membership is limited to locals and/or foreigners who are at least 14 years of age.
• ③ Members may not assign or lend their membership nor any rights arising therefrom to any other person, or use such for collateral purpose.
• ④ Membership Cards will not be sent out via post/mail – customers can claim their Membership Cards by visiting the membership desks at Company’s Off-line Shilla Duty Free. Off-line S Rewards Participating Stores do not issue the Membership Cards.

Article 5. (Use and Management of Membership Card)

• ① When Members desire to use the services offered by the Company and the Business Partners they shall present the Card.
• ② Members may purchase products, use services or other services offered pursuant to the Terms of Use of the Company and the Business Partners.
• ③ The Card shall be used by Members in person, and may not be assigned or lent to any other person or used for the collateral purpose, without prior consent of the Company.
• ④ In the event Members desire to have the Card reissued due to loss, theft, or damage, they shall apply for a replacement Card by presenting their passport, and completing the Card Issuance Application in person.
• ⑤ The Card shall be managed under the responsibility of a Member himself/herself, and where the Card is lost, stolen, or damaged by a Member’s intention or negligence, the Member concerned shall notify the Company. Upon the receipt of such notice, the Company will immediately take all measures required to suspend use of the Card concerned; provided, however, that the Company will not assume any responsibility for any loss arising before the time of notification by the Member concerned.

Article 6. (Cancellation and Disqualification of Membership, Restriction of Re-registration)

• ① Members may request cancellation of membership at any time in writing, by e-mail, telephone, or other methods prescribed by the Company, and upon the request of Members, the Company will promptly conduct all procedures required for cancellation of membership; provided however a Member’s withdrawal from membership may by restricted in the following cases:
  • a) Where the Member has an order history (uncollected item); or
  • b) Where the Member’s S Rewards are displayed as minus.
• ② Where a Member falls under any of the following, the Company may disqualify the Member concerned with notification
  • a) Where a Member has registered, filled out or notified false information when applying for membership;
  • b) Where a Member has used member services 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 Off-line S Rewards Services, means the activity of obtaining and/or redeeming points without making the corresponding purchases at the Company’s Off-line Shilla Duty Free or Off-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 Off-Line S Rewards Services, means redemption of Off-line S Rewards earned through “Unauthorized Earning” or redemption of a certain Member’s points by any other person.
    * Off-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 Company 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 subsection (b) above.
  • c) Where a Member has violated other terms and conditions of Members prescribed herein or
  • d) Where disqualification of Membership is deemed reasonable (in case of habitually cancelling purchase of products without any defect; habitually making unreasonable demands; spreading false information; using violence or abusive language to staffs, etc.)
• ③ Members, who have been disqualified due to causes set out in section 2 of this Article, may provide details verifying that such cause is not imputable to their intention or negligence. In this case, the Company will deliberate their explanation, and where deemed reasonable, allow the Members to resume use of the services
• ④ The confirmation of membership termination or membership level downgrade according to sections 1 and 2 of this Article will be final on the date of request for termination, or the date of announcement of membership level downgrade, respectively. Provided however, if a Member requests membership termination when his or her S Rewards are displayed as minus, such Member’s termination may be processed only with the Company’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 the Company may demand for payment by minimum USD 1 or KRW 1,000).
• ⑤ Members, who falls under section 2 of this Article or who have been disqualified due to causes set out in section 2 of this Article, may be prohibited from re-registration of Membership.

Article 7. (Using and Managing Off-Line S Rewards)

• ① If the Member wishes to use Off-line S Rewards Services, the Member must present the Card or follow other procedures determined by the Company.
• ② Off-line S Rewards are awarded based on a certain percentage of the amounts spent at the Company’s off-line Shilla Duty Free or Off-line S Rewards Participating Stores after membership enrollment. Member may use Redeemable Points to purchase merchandise or services at the Company’s off-line Shilla Duty Free or Off-line S Rewards Participating Stores or use other services in accordance with these Terms of Use. If the Member wishes, the Member’s Off-line S Rewards may be transferred to On-line S Rewards and vice versa.
• ③ Members earn Off-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 Company’s off-line Shilla Duty Free or Off-line S Rewards Participating Stores. The percentage shall be determined by the Company and may be subject to the agreement between the Company and the Off-line S Rewards Participating Stores. Decimal Off-line S Rewards will be rounded down.
• ④ Off-line S Rewards are awarded for the purchases made after membership enrollment and the member’s provision of relevant consents for the use of personal information. In principle, Off-line S Rewards are earned at the time purchase of merchandise or services is made. If the Member misses earning Off-line S Rewards, the Company will credit the Member’s account with the requisite numbers of Off-line S Rewards if the Member presents sales receipt and proof of payment to the Customer Service Desk of the Company 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 Off-line S Rewards shall automatically be deducted from the Member’s account. If the remaining Off-line S Rewards are fewer than the cancelled Off-line S Rewards, his or her Off-line S Rewards will be displayed as minus, and be set-off with Off-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, the Company 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 Company may refuse award of Off-line S Rewards if the Member requests to utilize Off-Line S Rewards and other promotions, discounts, loyalty program or rewards program concurrently for a single purchase. If requested by the Company, 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 purchase or pick up of the merchandise after immigration whichever is later, granted Off-line S Rewards become Earned Points
• ⑧ Any and all taxes arising from or in connection with the earning of Off-line S Rewards shall be borne by Members.

Article 8. (Error Modification, Cancellation & Expiry of Off-Line S Rewards)

• ① Member can request correction of Off-line S Rewards earned incorrectly, and the Company 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 Company has reasonable reasons (e.g., for inevitable business needs due to unpredictable business risks, etc.), the Company may cancel properly awarded Off-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 Company shall provide other forms of rewards points or gift voucher of equivalent value. Cancellation due to negligence or fault of the Company or Off-line S Rewards Participating Stores shall also be compensated through other forms of rewards 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 Off-line S Rewards granted per event (promotion) shall expire as notified at the time of event (promotion). Off-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 Off-line S Rewards is set to expire within less than 6 months at the time of transfer, the expiry date shall be extended by 6 months. Off-line S Rewards granted per event (promotion) is not transferrable. Transferred Off-line S Rewards cannot be re-transferred.
• ④Upon the expiry of any Off-line S Rewards, the Company 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 9. (Using Off-line S Rewards)

• ① Member may redeem Redeemable Points for the purchase of merchandise or services at the Company’off-line Shilla Duty Free or Off-line Participating Stores by presenting the Card or in accordance with other procedures determined by the Company. 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 Off-line S Rewards are transferrable to On-line S Rewards and vice versa.
• ② 1,000 points of Off-line S Rewards are equivalent to USD 1.If the purchase is made in a currency other than USD, the Company 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 Company may change exchange rate per Article 12 of these Terms of Use. The new exchange rate shall be effective on the date as provided in the Company’s notice.
• ③ Off-line S Rewards shall not be sold, transferred, assigned, mortgaged, pledged or subject to any other encumbrances, unless otherwise authorized by the Company (e.g.through gifting function described at Article 8, section 3).
• ④ If a customer is not registered with the Company, the Company may refuse to provide Off-line S Rewards Services to the customer.
• ⑤ Any taxes and expenses arising from or connected to the use of Off-line S Rewards shall be responsibility of Member.

Article 10. (Withdrawal of Membership and Disqualification)

• ① Member who wishes to withdraw shall request withdrawal as described at section 1 of Article 6 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 6, 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 10, Unauthorized Off-line S Rewards of a Member who was notified of disqualification per Article 6, section 2, subsection c) of these Terms of Use will be forfeited upon notification of disqualification, and the Member has no claims, rights or entitlements in relation to the Unauthorized Off-line S Rewards.

Article 11. (Termination of Off-Line S Rewards Services)

• ① For reasons such as merger, consolidation, amalgamation of the Company, or any reasons not within the control of the Company, the Company may terminate Off-line S Rewards Services without prior notice.
• ② The Company may terminate Off-line S Rewards Services upon 3 months prior notice to Members per Article 12 of these Terms of Use. Balance Points unused until termination of Off-line S Rewards Services shall be compensated per the last sentence of Article 8, section 2.

Article 12. (Amendment of these Terms of Use and Other Provisions)

• ① These Terms of Use may be amended, where necessary, and if the Company wishes to amend these Terms of Use, the Company will inform Members of the fact that these Terms of Use will be amended with details of the amendment, etc. through more than one methods set out below no later than thirty (30) days before the amended Terms of Use takes effect (“effective date”); provided, however, that in the case of a) or b), such notice will be sent to the e-mail address or mailing address most recently provided by Members:
  • a) E-mail notification;
  • b) Written notification;
  • c) Posting in the The Shilla Duty Free website ; or
  • d) Notice posted in the Company’s off-line Shilla Duty Free.
• ② In principle, the Terms of Use amended hereunder (“Amended Terms of Use”) will come into force from the effective date.
• ③ Members, who object to the Amended Terms of Use, may cancel their membership; provided, however, that Members, who do not cancel their membership within thirty (30) days from the Company’s notification under section 1 of this Article notwithstanding their objections, will be deemed to have agreed to the Amended Terms of Use; provided, however, that where the Amended Terms of Use operate to Members’ disadvantage, Members may cancel their membership within two months from the Company’s notification.
• ④ The method and effect of notification of this Article applies mutatis mutandis to the method and effect of notification or notice prescribed herein.
• ⑤ Matters not provided for in these Terms of Use or matters concerning interpretation of these Terms of Use will be subject to the laws of the Republic of Korea.
• ⑥ Any and all liabilities arising from the violation of these Terms of Use shall be assumed by the person who committed such violation, and if damage is sustained by a third party due to such violation, the person who committed such violation shall be liable to compensate for such damage.
• ⑦ The settlement of any dispute arising in relation to the Terms of Use, issuance and use of the Card shall be determined in consultation with the Member concerned and the Company in accordance with generally accepted business practices; provided, however, that if agreement is not reached, a lawsuit may be brought to a competent court of jurisdiction under the Civil Procedure Act.