Terms of Brokerage

Effective 2 November 2026 · for dealers in Korea

Article 1 Purpose

These Terms set out the rights, obligations and responsibilities of dealers in Korea (the “Dealer”) and Korea Merchants Group (the “Company”), the procedure of the service and other necessary matters in connection with the export brokerage service under which the Company markets the Dealer’s vehicles to importing dealers abroad, brokers the sale, collects the purchase price and arranges export and hand-over to the logistics company.

Article 2 Definitions

“Platform” means koreamerchants.com and the systems the Company operates to broker vehicle sales abroad.
“Dealer” means a vehicle dealer in Korea that has agreed to these Terms and entered into a brokerage agreement with the Company for vehicles it owns or has the lawful right to sell.
“Vehicle” means a vehicle the Dealer has placed with the Company for brokerage, including a vehicle whose listing the Company reads from the public record of the dealer complex where it is kept.
“Buyer” means an importing dealer abroad that accepts a quote for a Vehicle under the Terms of Purchase.
“Public Price” means the price shown to Buyers: the Dealer’s price plus the Company’s brokerage of 5%.
“Settlement Amount” means the amount the Company pays the Dealer for a sold Vehicle: the Dealer’s price for the Vehicle as recorded in the brokerage agreement or the listing at the time of the quote, less any penalties, compensation or costs chargeable to the Dealer under these Terms.
Any term not defined here has the meaning given in applicable law and general business practice.

Article 3 Role of the Company

The Company is the Dealer’s broker. It does not buy the Vehicle and does not sell it in its own name. The contract of sale is between the Dealer and the Buyer; the Company brokers it and issues the quote and invoice to the Buyer as the Dealer’s broker and collection agent.
The Company collects the purchase price from the Buyer into an account in the Company’s name, as the Dealer’s collection agent, and pays the Dealer the Settlement Amount after the Buyer’s payment has cleared in full and the conditions of Article 8 are met. The Dealer does not deal with the Buyer’s payment and has no claim against the Buyer; the Dealer’s rights are limited to the Settlement Amount from the Company.
The Company arranges freight through the logistics company, which quotes and invoices the Buyer directly. The Company does not receive freight money and is not the carrier.
To protect the Dealer’s and the Buyer’s personal information the Company maintains a Privacy Policy and operates it in good faith.

Article 4 Scope of the Brokerage Service

The Company performs the following work to sell the Dealer’s Vehicles to Buyers abroad:

Overseas marketing: showing the Vehicle on the Platform with its translated inspection record and insurance history, and promoting it through the Company’s buyer database and channels.
Buyer consultation: answering Buyers’ enquiries, forwarding questions to the Dealer and relaying the Dealer’s answers.
Quotes and invoices: confirming availability with the Dealer, issuing the quote and the invoice to the Buyer in the Company’s name as broker.
Collection of the purchase price and confirmation of receipt.
Export documents: checking the export declaration and the certificate of deregistration (or the certificate of scrapped-vehicle acceptance) provided by the Dealer, and supporting the preparation of the commercial invoice and packing list.
Collection and transport: dispatching a carrier to collect the Vehicle at the complex and deliver it to the container-loading place or the port.
Pre-shipment check: checking that the Vehicle delivered matches the listing and runs, and reporting the result to the Dealer.
Hand-over to the logistics company and issue of the shipping documents to the Buyer.
Claims: receiving claims from the Buyer after arrival and handling them with the Dealer under Article 10.
Settlement with the Dealer under Article 8.

Article 5 Obligations of the Dealer

The Dealer must describe its Vehicles accurately and keep the information current. Where the listing is read from the complex’s public record, the Dealer must keep that record accurate and tell the Company at once of any change in availability, price or condition.
The Dealer decides its own price. The Company adds its brokerage to form the Public Price and does not interfere with the Dealer’s pricing without reasonable grounds.
The Dealer must not sell directly to, or encourage purchases by, a Buyer introduced through the Company, and must not sell a Vehicle elsewhere while it is reserved under Article 6.
The Dealer must comply with the duty of disclosure in good faith: accident history, flood damage, fire damage, structural repair, odometer corrections, rental or commercial use, tuning and recalls must be disclosed even where the inspection record does not show them.
The Dealer must not place with the Company any vehicle whose export requires permission under the Foreign Trade Act or is otherwise restricted by law, a stolen vehicle, or a vehicle with a falsified identification number.
The Dealer must provide the export documents promptly and in legible quality, and must deliver the Vehicle clean, with sufficient fuel, with all keys and documents, and with nothing loaded inside it.
The Dealer is responsible for the staff and accounts it uses with the Company and may not transfer its brokerage agreement to a third party.
If the Dealer fails to perform these obligations, or is objectively unable to continue its business, the Company may suspend the Dealer, end the brokerage agreement and claim damages.

Article 6 Procedure and Reservation of the Vehicle

Stage 1 — Listing: the Vehicle is shown on the Platform once its inspection record confirms the six required items (frame, engine, transmission, steering, accident history, flood damage).
Stage 2 — Enquiry: the Company confirms availability with the Dealer and issues a quote to the Buyer.
Stage 3 — Invoice: when the Buyer accepts the quote, the Company issues the invoice and notifies the Dealer. The Dealer may not sell the Vehicle elsewhere for 3 business days from the notification.
Stage 4 — Payment confirmed: when the Buyer’s payment has cleared in full, the Company notifies the Dealer. From that notification until hand-over the Dealer may not sell the Vehicle elsewhere.
Stage 5 — Documents: the Dealer deregisters the Vehicle for export and provides the certificate of deregistration and the export declaration within the period stated in the notification.
Stage 6 — Collection: the Company dispatches a carrier to collect the Vehicle. If the Vehicle is kept outside the complex, the Company may charge the Dealer for the extra distance or ask the Dealer to deliver it.
Stage 7 — Pre-shipment check: the Company checks the Vehicle and notifies the Dealer of the result. If the Dealer does not object within 3 business days, the Dealer is deemed to accept the result.
Stage 8 — Settlement: the Company pays the Settlement Amount under Article 8 for Vehicles that have passed the check.
Stage 9 — Shipment: the Vehicle is handed to the logistics company and the shipping documents are sent to the Buyer.
Stage 10 — Claims: claims received after arrival are handled under Article 10.

Article 7 Penalties

If the Dealer sells a Vehicle elsewhere during the reservation period of Stage 3, or at any time after the payment-confirmed notification of Stage 4, the Dealer pays the Company the penalty stated in the brokerage agreement for that stage, in addition to the costs the Company has incurred and any amount the Company must refund or pay the Buyer.
If a sale fails because the Dealer does not provide the export documents, the Dealer pays the penalty stated in the brokerage agreement and the costs incurred.
If the Vehicle is delivered unclean, with insufficient fuel, with goods loaded inside, or without keys or documents, the Dealer pays the handling charges stated in the brokerage agreement.
From the Settlement Amount notification until the Buyer takes delivery, the Dealer remains responsible for any discrepancy between the Vehicle and its listing.

Article 8 Payment of the Settlement Amount

The Company pays the Settlement Amount when all of the following are met: the Buyer’s payment has cleared in full; the certificate of deregistration and the export declaration have been provided, with the declared export value matching the invoice; the Vehicle has been delivered to the designated place; and the Vehicle has passed the pre-shipment check.
The Company pays the Settlement Amount to the Dealer’s designated account in Korean won within the period stated in the brokerage agreement after the conditions are met, and issues the tax documents required by Korean law for its brokerage.
If the Dealer closes or deregisters its business, the Company stops brokering its Vehicles and may withhold settlement for Vehicles sold after the closure; any penalty tax the Company incurs because it cannot issue a tax document to the Dealer is deducted from the Settlement Amount.

Article 9 Return of the Settlement Amount

The Dealer must return the Settlement Amount in full if, after it has been paid, shipment proves impossible because of an undisclosed problem or serious defect in the Vehicle, the Vehicle differs from the listing or the documents, or the Dealer’s use of the service is suspended for reasons attributable to the Dealer.
The Dealer may in addition owe compensation under Article 10, including the freight and other costs the Company or the Buyer has incurred because of the Dealer’s breach.

Article 10 Claim Compensation Standards

The Dealer is responsible for every problem that arises from incorrect or incomplete information about a Vehicle.
Claims from Buyers are accepted within 14 days of arrival at the destination, with photos, video and, where relevant, repair estimates. Normal wear and tear, consumable parts, damage in transit and damage caused by use after delivery are not the Dealer’s responsibility.
The categories of claim and the compensation for each are set out in the compensation table of the brokerage agreement: a different chassis number, engine displacement, fuel type or mileage, undisclosed flood, fire or total-loss history, an altered identification number, and undisclosed rental, taxi, police or fuel-conversion history are compensated at the full vehicle price plus freight; undisclosed body, glass, interior, underbody-corrosion, engine, transmission or option defects are compensated at the fixed amounts in the table or, where none is stated, at the cost of parts, repair and delivery.
For problems not listed, the Company reviews the claim with the Dealer and determines a reasonable amount within the Dealer’s responsibility. The Company may deduct compensation from amounts due to the Dealer.
Changes to the compensation standards are announced at least 30 days in advance and do not apply to transactions already in progress.

Article 11 Listings

The Dealer warrants that the information and photos of its Vehicles describe the actual Vehicle, do not infringe third-party rights and comply with the law.
The Company may display listings on the Platform and in its marketing channels, translate them and edit their layout. Plate numbers, chassis numbers, the Dealer’s name and contact details are not shown to the public.
A listing is removed and the Dealer’s use of the service may be restricted if the photos are edited to add text, logos or contact details, the Vehicle has already been sold or is not owned by the Dealer, the information differs from the Vehicle, or the price is set misleadingly low.

Article 12 Contract Period and Termination

The brokerage agreement begins on the date the Dealer signs it and runs for one year, renewing automatically for successive one-year periods unless either party gives notice to end it.
The Company may end the agreement during the period if the Dealer fails to perform its obligations under Articles 5 to 7, provides false information or documents, does not handle claims under Article 10, is more than two months overdue on amounts owed to the Company, interferes with the service, or violates the law. The Company notifies the Dealer of the reason, and may give the Dealer an opportunity to state its position.
Transactions in progress at termination are completed by both parties in good faith. If the Company suffers damage because the Dealer does not complete them, the Dealer compensates the actual damage, including amounts the Company has refunded or paid to Buyers.
After termination the Company removes the Dealer’s listings within 30 days, except records that must be retained by law.

Article 13 Special Agreements

The Dealer and the Company may agree special terms in writing, including the penalty and compensation amounts, settlement periods and volume commitments. A written special agreement prevails over these Terms to the extent agreed.

Article 14 Governing Law and Jurisdiction

These Terms are governed by and interpreted in accordance with the laws of the Republic of Korea.
Disputes are resolved amicably on the basis of mutual trust; if no agreement is reached, the competent court under the Civil Procedure Act of the Republic of Korea has jurisdiction.
These Terms are prepared in Korean and English. If there is any inconsistency between the two versions, the Korean version prevails.