Terms of Purchase

Article 1 Purpose

These Terms set out the basic matters between Korea Merchants Group (“KMG” or the “Company”) and importing dealers (the “Buyer”), including their rights and obligations, the conclusion and performance of vehicle sales brokered by the Company, payment, cancellation and refunds, shipment and claims.

Article 2 Transaction Relationship

1. The Company is a broker. For each vehicle shown on the Platform the Company markets the vehicle abroad, answers the Buyer’s enquiries, obtains the Selling Dealer’s confirmation, issues the quote and the invoice, collects the purchase price, arranges export documentation and the hand-over to the logistics company, and handles claims. The Company does not own the vehicle at any time.
2. When the Buyer accepts a quote and the Company issues the invoice, a contract of sale for that vehicle is formed between the Selling Dealer and the Buyer, brokered by the Company. The Company issues the invoice and receives the purchase price as the Selling Dealer’s broker and collection agent; the Buyer pays the Company and has no obligation to pay the Selling Dealer.
3. Title to the vehicle passes from the Selling Dealer to the Buyer when the purchase price has been received in full and the vehicle has been deregistered for export in Korea. The Company pays the Selling Dealer only after the Buyer’s payment has cleared in full.
4. Freight, insurance in transit and the services at the Chinese yard and the border are sold by the logistics company under its own quote, which the Buyer accepts separately. The contract of carriage is between the Buyer and the logistics company; the Company arranges it but is not the carrier and does not receive freight money.

Article 3 Price and Trade Terms

1. The price shown for a vehicle is the Selling Dealer’s price plus the Company’s brokerage of 5%. The brokerage is included in the price and is not charged again on the invoice.
2. The price is for the vehicle as described by its Korean inspection record, insurance history, specifications and photos, at the dealer complex in Incheon. It includes the Selling Dealer’s export deregistration and the Korean export declaration.
3. The price does not include: the Korean origin charges — collection at the complex, container loading and port charges in Incheon — which are stated separately on the quote; freight and transit insurance, which the logistics company quotes per shipment; storage beyond the free period at the Chinese yard; and all duties, taxes, utilisation or recycling fees, customs brokerage, inspection, certification and registration charges in the country of import.
4. Prices are shown in Korean won and, for information, converted to other currencies at a daily reference rate. The invoice states the amount payable in US dollars at the rate fixed on the date of the invoice.
5. Before accepting a quote the Buyer must check the vehicle information, the price, the trade terms and the shipping terms stated on it.

Article 4 Enquiry, Quote and Conclusion of the Sale

1. A listing on the Platform is an invitation to enquire. On the Buyer’s enquiry the Company confirms with the Selling Dealer that the vehicle is available and issues a quote stating the vehicle, the price, the Korean origin charges, the indicative freight and transit time, the payment deadline and any conditions.
2. A quote is valid for the period stated on it. The Buyer accepts a quote by confirming it in writing (email or the Platform). The Company then issues the invoice and asks the Selling Dealer to hold the vehicle for the Buyer.
3. The Buyer must confirm or decline the invoice within 48 hours of receiving it. An invoice not confirmed within that period may be voided, and the vehicle may be sold to another buyer.
4. The vehicle is reserved for the Buyer from the invoice date until the payment deadline stated on the invoice. If the Selling Dealer sells the vehicle elsewhere during that period, the Company refunds any amount received in full and the Selling Dealer’s penalty under the Terms of Brokerage applies; the Company has no further liability to the Buyer for that vehicle.

Article 5 Payment

1. The Buyer pays the full invoice amount by telegraphic transfer (T/T) in US dollars to the bank account in the Company’s name stated on the invoice, within the deadline stated on the invoice (7 days from the invoice date unless the invoice says otherwise). Bank charges on the Buyer’s side are for the Buyer’s account.
2. The remittance must be made in the name of the Buyer shown on the invoice. The Company may refuse or return a remittance made in the name of a third party, and may request verification documents under its identity-verification and anti-money-laundering procedures.
3. The Company never changes its bank account details by email. If the Buyer receives new account details, the Buyer must confirm them by telephone with a known contact at the Company before paying.
4. The Company confirms receipt in writing. Deregistration, export declaration, collection and loading begin only after the full amount has cleared.
5. If payment is not received within the deadline the Company may cancel the sale under Article 6.

Article 6 Cancellation and Refunds

1. If the Buyer cancels the purchase for the Buyer’s own reasons after the invoice has been confirmed, the cancellation fee stated on the invoice applies. Costs already incurred for the vehicle on the Buyer’s instruction — such as collection, loading or document fees — are deducted in addition.
2. If the full purchase price has not been received within the payment deadline, the Company may cancel the sale. Any amount already received is refunded after deducting the cancellation fee and costs under paragraph 1.
3. If the Selling Dealer cannot deliver the vehicle — because it has been sold elsewhere, has failed the pre-shipment check, or its documents cannot be obtained — the Company refunds in full every amount it has received for that vehicle, including the brokerage. The Company will offer a comparable vehicle where it can; it has no further liability for the vehicle not delivered.
4. Refunds are made to the account of the Buyer that actually paid, or of the original remitter, less bank charges on the Company’s side. The Company may request verification documents before refunding.
5. Freight paid to the logistics company is refunded under the logistics company’s terms, not these Terms.

Article 7 Export, Shipment and Delivery

1. After payment has cleared, the Selling Dealer deregisters the vehicle for export and the Company obtains the export declaration. The Company arranges collection at the complex and loading into the container or onto the carrier for the next scheduled sailing from Incheon.
2. Freight is quoted by the logistics company per shipment, taking into account the vehicle’s size, the round and the destination. The indicative rates shown on the Platform are reference prices for the period stated and are not a quote. The Buyer pays freight to the logistics company against its invoice.
3. Transit times shown on the Platform are the logistics company’s quoted ranges or the Company’s own measured shipments, as marked. For Central Asian routes the Company guarantees arrival within the number of days stated on the quote, counted from the day the train actually departs the Chinese yard; the remedy for a late arrival is stated on the quote. Days before the rail departure — the sea leg, devanning, transit customs and waiting for the next train — are forecasts, not guarantees.
4. The Chinese yard allows the free parking period stated on the quote; storage beyond it is charged by the logistics company at its published rate.
5. Delivery is to the place stated on the logistics company’s quote: the Buyer’s address in the destination city, or the pick-up yard at the border where the quote says so. The Buyer must receive the vehicle, inspect it on hand-over, note any damage on the hand-over record and sign for it.
6. The Company sends the Buyer copies of the export declaration, the deregistration certificate, the commercial invoice and packing list, and the logistics company’s bill of lading, rail and road waybills and insurance certificate as they are issued. Originals are sent where the destination customs require them.
7. Loss of or damage to the vehicle in transit is covered by the transport insurance included in the logistics company’s rate and is claimed through the logistics company. The Company assists with the claim but is not the insurer or the carrier.

Article 8 Vehicle Condition and Claims

1. The vehicle is sold in the condition described by its Korean inspection record, insurance history and photos on the date of the quote. Items the record marks as issues, and normal wear consistent with the vehicle’s age and mileage, are disclosed and are not defects.
2. Before loading, the Company or its agent checks that the vehicle delivered by the Selling Dealer matches the listing and runs; a vehicle that does not pass is not shipped and Article 6 paragraph 3 applies.
3. A claim that the vehicle differs from its listing or has an undisclosed defect must be made to the Company within 14 days of arrival at the destination, with photos, video and, where relevant, a repair estimate. The Company reviews the claim with the Selling Dealer and settles it under the compensation standards of the Terms of Brokerage; the Buyer is paid by the Company from the amount recovered from the Selling Dealer.
4. Excluded from claims: normal wear and tear and consumable parts; matters disclosed in the inspection record or the listing; damage in transit, which is an insurance matter under Article 7; damage caused by use, storage or repair after delivery; and claims made after the 14-day period.

Article 9 Customs, Registration and Compliance

1. Import permission, customs clearance, duties and taxes, utilisation or recycling fees, conformity certification and registration in the country of import are the Buyer’s responsibility and are performed by the Buyer or its customs broker. The Company’s country guides describe published rules on the date stated for information only; it is the importer’s responsibility to check and comply with all customs regulations, and the Company is not responsible for customs clearance or registration.
2. The Buyer warrants that it is a business lawfully entitled to import vehicles in its country, that it is not a person or entity subject to sanctions or export-control restrictions applicable to the Company, and that the vehicle will not be re-exported to a destination to which such restrictions apply.
3. The Buyer must not place any goods inside a vehicle for shipment and must not ask the Company or the logistics company to do so. Goods found inside a vehicle at customs are the Buyer’s responsibility, including fines, delays and storage.

Article 10 The Company’s Role and Limitation of Liability

1. The Company is not the seller, the carrier or the insurer. Its obligations are those of a broker stated in these Terms and in the quote and invoice: to describe the vehicle as recorded, to confirm availability, to collect and account for the purchase price, to arrange documents and hand-over, and to handle claims under Article 8.
2. The Company is not liable for loss or damage that occurs without fault on its part after the vehicle has been handed to the logistics company, or after arrival at the destination, such as theft or damage in areas controlled by third parties; liability under the contract of carriage, the insurance or the law is not affected.
3. Except where the Company has acted intentionally or with gross negligence, the Company’s liability to the Buyer in connection with a vehicle is limited to the brokerage included in that vehicle’s price.

Article 11 Force Majeure

If performance becomes impossible or is delayed by events beyond the reasonable control of the parties — such as natural disasters, war, sanctions, port, border or rail closures, strikes, epidemics, or power or communication failures not attributable to a party — the affected obligations are suspended for the duration of the event, transit-time guarantees do not run during it, and the parties’ liability is determined under applicable law to the extent of the event’s effect on the transaction.

Article 12 Governing Law and Miscellaneous

1. These Terms are governed by and interpreted in accordance with the laws of the Republic of Korea.
2. Matters not set out in these Terms are governed by the individual quote and invoice, the Company’s Terms of Use and applicable law.
3. If a dispute arises the parties will negotiate in good faith to resolve it amicably. If it is not resolved, it will be decided by the competent court under the laws of the Republic of Korea.
4. These Terms are prepared in Korean and English. If there is any inconsistency between the two versions, the Korean version prevails.