Consumer Guide to Installment Transactions, Door-to-Door Sales, and Credit Cards

Based on 42 consultation cases · Updated October 4, 2026 · Translated from the Korean original.

You may withdraw from installment and door-to-door sales contracts within specified periods, but restrictions may apply depending on the purpose of the transaction and the type or condition of the goods. Liability for unauthorized credit card use and refund obligations in prepaid installment transactions may also depend on such factors as whether the card was signed, the cardholder’s fault, and whether the business was transferred.

People involved → Consumer → Seller or prepaid business → Card issuer → You bought on installments or door-to-door or face a card or refund issue → Was the installment purchase for business use? → Yes: commercial-purpose contracts may be outside the Act; Installment Transactions Act Article 3 → Installment Act protection may not apply or withdrawal may be restricted → No → Are you within the applicable withdrawal period? → Yes: 7 days for installments or 14 days for door-to-door; Installment Transactions Act Article 8; Door-to-Door Sales Act Article 8 → Does a statutory restriction apply? → Yes → You may be able to withdraw Send written notice in time → Check the deadline and how it is counted → Installments: count from contract receipt, or later goods delivery; door-to-door: learning the seller address may matter if the contract or address was unavailable → Check whether a prepaid busi…

Key points

As a rule, the period for withdrawing from an installment transaction is 7 days from the day you receive the contract. If the goods are supplied later, the period is counted from the day they are supplied (Installment Transactions Act, Article 8 (할부거래에 관한 법률 제8조)).
As a rule, you may withdraw from a door-to-door sales contract within 14 days from the day you receive the contract. If the contract was not provided or the seller’s address was unknown, the period may be counted from the day you learned or could have learned the address (Act on Door-to-Door Sales, etc., Article 8 (방문판매 등에 관한 법률 제8조)).
Withdrawal may be restricted if a statutory ground applies, such as damage to the goods caused by the consumer or a significant reduction in their value.
The Installment Transactions Act may not apply to an installment contract made for commercial purposes, such as purchasing goods to operate a business (Installment Transactions Act, Article 3 (할부거래에 관한 법률 제3조)).
If a prepaid installment transaction business transfers its entire business, the acquiring company succeeds to the contractual rights and obligations, including the obligation to pay refunds upon cancellation. An agreement excluding this succession is ineffective (Installment Transactions Act, Article 22(1) (할부거래에 관한 법률 제22조 제1항); Supreme Court, January 14, 2016, 2015Da50200).
Compensation for unauthorized use following loss or theft of a card may depend on circumstances under the terms and conditions, such as whether the card was unsigned, whether the report was delayed, and whether the cardholder was at fault. Report the loss immediately, and if you dispute that you were at fault, check what evidence is available to establish this.
Refusing a payment or offering a better price to cash-paying customers because a customer pays by credit card may be prohibited (Specialized Credit Finance Business Act, Article 19(1) (여신전문금융업법 제19조 제1항)).

Frequently asked questions

Q. How many days do I have to cancel a purchase made in installments?

According to the case, you may withdraw within 7 days from the day you receive the contract. If you receive the goods later, the period may be counted from the day they are supplied. However, withdrawal may be restricted if a statutory exception applies, such as damage to or use of the goods. You must send the seller written notice of your intention to withdraw within the applicable period.

Case 1

Q. I want to return a book I bought through door-to-door sales, but I can’t contact the seller.

As a rule, you may withdraw from a door-to-door sales contract within 14 days from the day you receive the contract. If you did not receive the contract or could not withdraw because you did not know the seller’s address, the period may be counted from the day you learned or could have learned the address. The case explains that you may give notice of withdrawal in writing.

Case 2, Case 22

Q. I bought something in installments for use in my shop. Can I cancel if I change my mind?

The case explains that when a refrigerator needed to operate a restaurant is purchased, the transaction is considered an installment contract for commercial purposes and is unlikely to be protected under the Installment Transactions Act. Whether the Act applies may depend on whether the purchase is related to operating a business.

Case 14

Q. The sales contract for the goods was canceled. Do I still have to keep paying the credit card installments?

Under an indirect installment contract, if there is a ground for invalidating, rescinding, or terminating the sales contract, you may rely on that ground to refuse to pay the installments to the credit provider. The case explains that you may assert this refusal only after notice of your intention to refuse payment has reached the credit provider.

Case 19

Q. If a mutual aid company is transferred to another company, who pays the refund upon cancellation?

If a prepaid installment transaction business transfers its entire business, the acquiring company succeeds to the contractual rights and obligations, including the obligation to pay refunds upon cancellation. The case explains that even if the transfer agreement leaves responsibility for refunds with the former company, this cannot exclude succession as against consumers.

Case 6, Case 10, Case 15

Q. Can I get compensation if my unsigned card was stolen and used fraudulently?

The case identifies an unsigned card as a circumstance that may exclude compensation under the standard terms, so compensation may be difficult to obtain. However, it also discusses a court decision holding that a contractual clause may be invalid if it places all liability on the cardholder despite the cardholder having no fault in the card’s theft or the disclosure of the PIN. The applicable terms and the specific circumstances of any fault must therefore be examined.

Case 3, Case 21, Case 23

Q. My personal information was leaked and charges I don’t recognize were made on my card. Do I have to pay them?

According to the case, the credit card company is liable for use of card information obtained through unlawful means, such as hacking or an internal data leak. The outcome may differ if the cardholder acted intentionally or with gross negligence, so you should check the circumstances relating to how you handled your information and security measures.

Case 12

Q. Can I offer a discount for cash payments and charge more for credit card payments?

The case explains that measures that disadvantage cardholders because they pay by credit card, or favor customers who pay in cash, may be prohibited. It also notes that violations may be subject to penalties.

Case 5

Q. If a minor cancels a card-use agreement, must they also repay the cost of goods bought with the card?

According to the case, even if a card-use agreement is canceled, the separate sales contract with the merchant may remain valid. If the card issuer paid the merchant and the minor thereby obtained the benefit of being relieved of the obligation to pay the purchase price, the minor may be liable to return that benefit to the extent it still exists.

Case 16

Relevant laws

Installment Transactions Act, Article 2 (할부거래에 관한 법률 제2조)
Installment Transactions Act, Article 3 (할부거래에 관한 법률 제3조)
Installment Transactions Act, Article 8 (할부거래에 관한 법률 제8조)
Installment Transactions Act, Article 12(2) (할부거래에 관한 법률 제12조 제2항)
Installment Transactions Act, Article 22(1) (할부거래에 관한 법률 제22조 제1항)
Installment Transactions Act, Article 25 (할부거래에 관한 법률 제25조)
Act on Door-to-Door Sales, etc., Article 2(1) (방문판매 등에 관한 법률 제2조 제1호)
Act on Door-to-Door Sales, etc., Article 7(2) (방문판매 등에 관한 법률 제7조 제2항)
Act on Door-to-Door Sales, etc., Article 8 (방문판매 등에 관한 법률 제8조)
Specialized Credit Finance Business Act, Article 14(4) (여신전문금융업법 제14조 제4항)
Specialized Credit Finance Business Act, Article 14-2 (여신전문금융업법 제14조의2)
Specialized Credit Finance Business Act, Article 14-4 (여신전문금융업법 제14조의4)
Specialized Credit Finance Business Act, Article 14-5(3) (여신전문금융업법 제14조의5 제3항)
Specialized Credit Finance Business Act, Article 16(5) (여신전문금융업법 제16조 제5항)
Specialized Credit Finance Business Act, Article 17(1) (여신전문금융업법 제17조 제1항)

Watch out for

The withdrawal period varies by type of transaction. As a rule, it is 7 days for installment transactions and 14 days for door-to-door sales; if the contract was not provided or delivery was delayed, for example, the date from which the period runs may differ.
Withdrawal may be restricted if the goods have been used or damaged. Take care not to affect the packaging or condition of the goods when inspecting them.
Compensation for unauthorized card use may depend on whether the card was signed, when the incident was reported, whether the cardholder acted intentionally or negligently, and the terms and conditions. If you learn that your card has been lost or stolen, report it to the card issuer immediately.
This guide provides general information based on the explanations in the cited consultation cases. How the rules apply in a particular situation may depend on the contract and the facts.

Source cases

This guide was compiled by AI from the following Korea Legal Aid Corporation consultation cases (in Korean).

This guide is general legal information about Korean law, not legal advice for your situation. For a specific case, consult a lawyer or the Korea Legal Aid Corporation (call 132 in Korea).