I AUCTION PRIVACY POLICY

1. Privacy Policy

I Auction (“company” or “I Auction”) places great emphasis on your personal information and abides by the “Act on the Promotion of Information Network Usage and Information Protection”

The Company will disclose the purpose of the personal information provided by the customer through the use of the personal information policy and the measures taken to protect personal information. The company will notify you through the website announcement (or individual notice) when revising the privacy policy.

※ This policy will be effective as of May 1, 2008.

2. The type of personal information collected and collection methods

I AUCTION’s Privacy Policy describes its privacy practices as following:

1. The type of personal information collected and collection methods

A. The type of personal information collected

• The Company collects the following personal information for such purposes as registering members, providing quality customer service, and delivering other various services:
• - User name, user birthday, user gender, user ID, password, security questions and answers, phone number, address, mobile phone number, e-mail address, Cookies, and payment record

B. Data collection methods

• The Company collects personal information using the following means:
• - Website, written forms, fax

3. Purposes for the collection and use of personal information

The Company uses the collected personal information for the following purposes.

A. Billing and collection of fees for the fulfilment of service terms and conditions and the provision of services.

• - Content provision, purchase and payment, delivery of goods, sending invoices, Financial transaction authentication and financial services.

B. Membership management

• - User verification in accordance with the conditions for use of members-only services and the limited user verification, unique visitor identification, prevention of fraud or unauthorized use by members, confirmation of registration, setting limits on registration and the frequency of registrations, confirmation of legal guardians’ consent when collecting the personal information of minors under 14 years of age, confirmation of the legal guardians’ identities, retention of records for dispute mediation, handling of grievances such as complaints, and delivery of notices

C. Development and marketing of new services

• - Offer of event and advertising information, identifying the frequency of return visits and statistics on the service usage of members

4. Disclosure and provision of personal information

The Company limits the use of the personal information collected from users to the purposes specified in “3. Purposes for the collection and use of personal information” and will not use personal information for any other purposes or disclose the information to any third party without the user’s consent. However, exceptions may exist in the following circumstances:

• - The information has already been made publicly available by users
• - Disclosure of the information is required by law, e.g., when a government or investigative agency requests disclosure in accordance with the procedures outlined in applicable legislation)

5. Retention and usage period for personal information

The Company will immediately destroy the personal information collected when the purpose for which that information was collected is no longer being served. However, the Company will retain the personal information for the period necessary to fulfil the following purposes:

A. Retention of the information is required by the Company’s internal policies

• - Purpose of retaining logs of abnormal usage: Prevention of fraud or abnormal activity
• - Retention period: 1 year

B. Retention of the information is required by law

If retention of personal information is required by applicable legislation such as the Commercial Code and the Act on the Consumer Protection in Electronic Commerce, the Company may retain that information for the period specified in the applicable law. The information thus being retained by the Company will only be used to fulfil the purposes for which it is retained for the respective periods below:

• Retention items : Payment record
  Preservation evidence : Purpose of retaining history of contract or subscription cancellations Retention period: 3 years
  
• Purpose of retaining history of contract or subscription cancellations: (The Act on the Consumer Protection in Electronic Commerce) Retention period: 5 years
  
• Purpose of retaining history of payments and supply of goods:
  (The Act on the Consumer Protection in Electronic Commerce) Retention period: 5 years
  
• Purpose of retaining history of consumer complaints or settled disputes:
  (The Act on the Consumer Protection in Electronic Commerce) Retention period: 3 years

6. Procedure and method for destruction of personal information

The Company ensures that all personal information is destroyed as soon as the purpose for which that information was collected is no longer being served.
Personal information is destroyed through the following procedure and methods:

A. Destruction procedure

• - The information which users provide when register will be transferred and stored in a separate database (or a separate file if the information is given in paper format) as soon as the original purpose is no longer being served by retention of the information. That information will then be stored for privacy protection for the period specified in the Company’s internal policy or in applicable legislation (see “Retention and use periods”).
• - The personal information stored will never be used for any other purposes, except as required by law.

B. Destruction methods

• - Personal information printed on paper will be destroyed by way of shredding or burning.
• - Personal information stored on electronic files will be deleted using a technical method ensuring that the information cannot be reproduced.

7. Rights of users and their guardians, and way to exercise those rights

• - Users and their guardians may access and change the personal information they provided during registration at any time and may deactivate or delete their account at any time.
• - Users, or minors under 14 years of age, may access or change their personal information by clicking “Update Personal Information” or “Edit Account Settings.” To deactivate your account (or revoke permission), click “Deactivate Account.” Following the verification process, you can directly access, correct, or deactivate your account.
• - Otherwise, contact our Chief Privacy Officer via mail, phone, or e-mail, and the Company will respond promptly to your inquiry.
• - If a user requests correction of errors in their personal information, that information will not be used or made available during the year until the correction has been made. If incorrect personal information has already been given to a third party, the Company will promptly inform that third party of the results of correction as soon as the correction has been made.
• - The Company disposes of any personal information which a user or their guardian requests to be deleted in accordance with “5. Procedure and method for the destruction of personal information” and ensures that the information will not be accessed or used for any other purpose.

8. Enabling and disabling automatic data collection tools

The Company uses cookies that help store and frequently retrieve information about users to provide them with customized services. Cookies are small pieces of data that the servers used to run websites (HTTP) send to the user’s browser. Cookies can also be stored on the user’s hard drive.

A. Purposes of using cookies

- Cookies help the Company provide users with optimized information by analyzing visits and the usage of services provided on the I AUCTION website and other websites, identifying popular search words, determining the use of secure connections, and measuring the number of visitors.

B. Enabling and disabling cookies

• - Users can choose whether to allow or block cookies. By using the Options on their browser, users can enable all cookies, allow cookies to be stored after verification, or reject all cookies.
• - To reject cookies, users can enable all cookies, allow cookies to be stored after verification, or reject all cookies using the Options on their browser.
• - Example of settings (in Internet Explorer): The Tools at top of the browser  Internet options  Privacy tab
• -In case of refusing to store cookies, users may experience difficulty using some of the services provided by I AUCTION that require log-in.

9. Technical and administrative safeguards to protect personal information

In handling the personal information of its users, the Company seeks to maintain the following technical and administrative safeguards to ensure the security of personal information and protect it against loss, theft, breach, modification or damage.

A. Encryption of passwords

I AUCTION uses encryption to store and maintain members’ user names and passwords in such a way that only users can access their own usernames and passwords. Personal information can be accessed or changed only by those who know the password to access the account.

B. Protecting against hackers or cyberattacks.

The Company is committed to protecting members’ personal information against breaches or damage resulting from hacking or viruses.
The Company protects personal data against damage through regular back-ups and uses the latest versions of vaccines to prevent data breaches or damage. Furthermore, the Company ensures that personal information is securely transferred over a network through an encrypted communication.
Moreover, the Company utilizes an invasion prevention system to control unauthorized access and seeks to put in place as many technical safeguards as possible to ensure the security of all systems.

C. Training and limiting personnel handling personal information to minimum

The Company limits employees at I AUCTION who handle personal information to responsible officers. These officers are assigned unique passwords and required to renew the passwords on a regular basis. Training of responsible officers is also regularly provided to ensure compliance with I AUCTION PRIVACY POLICY.

D. Operating a mechanism dedicated to privacy (privacy team)

By setting up an internal mechanism dedicated to privacy (privacy team), the Company ensures that the requirements of its Privacy Policy are fulfiled. Any problems resulting from failure to comply by responsible officers are immediately corrected upon discovery.
However, the Company is exclusively not responsible for data breaches resulting from careless handling of a username or password on the user’s part or problems on the Internet.

10. Contact Information for our Chief Privacy Officer and responsible officers

You may report any incident related to privacy arising out of your use of the Company’s services to our Chief Privacy Officer (CPO) or responsible officer/department.
The Company strives to respond promptly and adequately to users’ reports.
Chief Privacy Officer and Responsible Privacy Officer

• Name: Gyun-pa, Kong
• Organization: I AUCTION CO., LTD.
• Phone: 02)733-6430
• E-mail: iauction@insaauction.com
• Title Director Name : GM Gyunpa,Kong
• E-mail: gyunpa00@insaauction.com

If you want to report an incident of privacy invasion or have any inquiries, please contact the organizations below:

• ① Personal Information Dispute Mediation Committee ( www.1336.or.kr / 1336)
• ② Personal Information Protection Mark Accreditation Committee ( www.eprivacy.or.kr / 02-580-0533~4)
• ③ Internet Crime Investigation Center, Supreme Prosecutors' Officer ( http://icic.sppo.go.kr / 02-3480-3600)
• ④ Cyber Terror Response Center, National Police Agency ( www.ctrc.go.kr / 02-392-0330)

11. Miscellaneous

Please note that “I AUCTION PRIVACY POLICY” does not apply to the privacy practices of other websites linked on the I AUCTION website.

12. Duty to Notify

Any addition, deletion or change made to this Privacy Policy will be notified through “Notices” on the Company’s website at least seven (7) days before the change takes effect.

ON-SITE AUCTION TERMS AND CONDITIONS

Article 1. Purpose

These Terms and Conditions describe the auction procedures and general requirements for an auction to be held by I AUCTION CO., LTD. (hereafter the “Company”) and the rights, duties and responsibilities of the Company and users.

Article 2. Definitions

• ① “In-house Auction” means an on-site auction held by I AUCTION in accordance with the Auction Terms and Conditions and Important Notice.
• ② “Auction Catalog” means a book published by I AUCTION in connection with an In-house Auction containing descriptions and information about items to be sold at auction (including electronic catalogs). “Auction Catalog, etc.” means all forms of materials provided by I AUCTION in connection with an Auction Catalog and the relevant auction, including, but not limited to the website of I AUCTION, e-mail, text messages, smartphone apps, list books, brochures, condition reports, proposals, research materials, screens used at an auction site, promotional materials, advertising materials, and printed matter.
• ③ “Auction Date” means a date on which any auction item is put up for auction at an In-house Auction.
• ④ “Business Day” means any calendar day excluding Saturdays, Sundays or public holidays of South Korea.
• ⑤ “Auction Period” means the length of time for which an In-house Auction is held including the auction commencement date.
• ⑥ “Consignor” means any individual or company that enters into a consignment agreement with I AUCTION to deliver a proprietary item such as an artwork owned by the individual or company to an In-house Auction before the auction commencement date, and that desires to sell the item through the Company’s auction process.
• ⑦ “Bidder” means any individual or company that submits an auction bid to I AUCTION to attend an In-house Auction and purchase an item; any individual or company whose bid has been accepted by I AUCTION or, if applicable, that has received a written confirmation from I AUCTION in accordance with the Auction Terms and Conditions and Important Notice.
• ⑧ “Successful Bidder” means any individual or company that attends an auction held by the Company and is selected by the auctioneer as the highest bidder in accordance with the Auction Terms and Conditions.
• ⑨ “Member” means any person who registers to be a member by providing the Company with personal information. Members are classified into regular and associate members.
• ⑩ “User” means a Consignor, a Bidder, a Buyer, or a Member who attends an auction held by the Company or receives the services provided by the Company.
• ⑪ "Cancellation Fee” means an amount equal to thirty percent (30%) of the winning bid on an auction item.
• ⑫ “Award Fee” means an amount owed by a Successful Bidder to I AUCTION that is the sum of all taxes, expenses, charges and costs, including exchange charges, a charge for storage, packaging, delivery and shipping insurance costs, which I AUCTION, its managers, staff, employees, and/or agents has paid in connection with the sale of auction items in accordance with the Auction Terms and Conditions and/or Important Notice.
• ⑬ “Buyer’s Premium” means a fee that a Successful Bidder owes to I AUCTION for the auction item purchased under an auction agreement in accordance with the Auction Terms and Conditions.
• ⑭ “Presale Estimate” means the price range of an auction item determined by I AUCTION at its sole discretion. The estimated price range is represented by the Company as low and high presale estimates. The Presale Estimate is offered to Bidders for convenience only and determined irrespective of the actual winning bid. The Company is not responsible for the citation of such Presale Estimates made outside an auction.
• ⑮ "Starting Bid" means the starting price for an auction item determined by I AUCTION and the auctioneer at their sole discretion.
• ⑯ "Winning Bid" means the price at which an item is sold at auction, where the sale of the item concludes with the fall of the auctioneer’s hammer and the picking up of a numbered paddle in accordance with the Auction Terms and Conditions.
• ⑰ "Purchase Price” means the sum of the Winning Bid and the Buyer’s Premium for an auction item.
• ⑱ “Reserve Price” means a hidden minimum price for an auction item determined prior to the auction, either as agreed upon in writing between the Seller of the auction item and I AUCTION (if the Consignor is the Seller), or as determined by I AUCTION (if I AUCTION is the Seller). A Reserve Price is not made known to Bidders and may be used as the Starting Bid with the consent of the Consignor.
• ⑲ “Seller” means either I AUCTION or a Consignor who is a party to an auction agreement in connection with an auction item. “Seller” means a party to an auction agreement concerning the sale of auction items
• ⑳ The due dates calculated hereunder include non-working days unless otherwise specified. Non-working days are based on bank business days.

Article 3. Posting, Explaining, and Changing Terms and Conditions

• ① The Company must post these Terms and Conditions on its website where they are clear and readily available to Users. The Company shall distribute copies of these Terms and Conditions when Users request ones when registering as Members or when entering into any auction-related agreement.
• ② The Company must explain all important terms and conditions set forth herein in such a way that Users understand such terms and conditions when entering into registration or auction-related agreements. However, for Users who have been offered explanations before, the Company may be relieved of the responsibility to explain with the User’s consent insofar as no changes have been made to these Terms and Conditions.
• ③ The Company may make changes to these Terms and Conditions to the extent permitted by applicable law, including the Regulation of Standardized Contracts Act and the Consumer Protection Act.
• ④ If any change is made to these Terms and Conditions, the Company must post a notice on the homepage of its website specifying the effective date and the reason the change is necessary, alongside the current Terms and Conditions, at least seven (7) days prior to the effective date. However, if any change made to these Terms and Conditions is unfavorable to Users, a notice of such change shall be given a grace period of at least thirty (30) days. The Company must make clear and readily available to Users a comparison of the Terms and Conditions before and after the change.
• ⑤ Any change made to these Terms and Conditions shall only apply to agreements entered into after the date the change takes effect. For all prior agreements, the Terms and Conditions before the change has been made shall apply. If a User who entered into an agreement expresses its intent to be bound by the revised Terms and Conditions and obtains the Company’s approval during the period of notice of changes specified in ③, then the revised Terms and Conditions shall apply.
• ⑥ Additional terms and conditions and interpretations of these Terms and Conditions are governed by the Regulation of Standardized Contracts Act, applicable legislation, or prevailing custom.

Article 4. Members

• ① Any person who pays an annual membership fee and registers with the Company becomes a regular member of the Company. Members will not receive a refund of the membership fee already paid.
• ② The Company issues a membership card to each regular Member.
• ③ Regular Members receive catalogs and other information online and are eligible to participate in auctions conducted by the Company.
• ④ Associate Members are non-paying members and receive all sorts of information online, but they are not permitted to participate in an auction.
• ⑤ The Company may limit or suspend the eligibility of a Member if the Member:
  
  • 1. Provided false information in their registration form;
  • 2. Failed to the obligations applying to all Members who participate in an auction, including an award fee;
  • 3. Caused a major disruption to the auction process by preventing other bidders from participating in an auction, distributing false information, or using another member’s name;
  • 4. Committed illegal activity, violated the Terms and Conditions, or otherwise engaged in anti-social activity in connection with an auction;
• ⑥ Members who repeat the same act more than twice for which their eligibility has been limited or suspended by the Company or who fails to cure the breach within thirty (30) days of notice may be stripped of their eligibility permanently.
• ⑦ The Company will delete the membership of any Member stripped of their eligibility for the reasons described above. That Member will be notified of deletion of their membership and the annual membership fee already paid will not be refunded.
• ⑧ Any notice required to be given hereunder will be sent to the e-mail address that the Company agreed to assign each Member.

Article 5. Auction Types and Terminology

• ① The Company holds a preview prior to an auction allowing all prospective bidders to get glimpses of auction items.
• ② The Company shall conduct an auction consisting of artworks, either on site or online, and related activities such as providing information about the works and brokering sales. However, the date, time and venue of an auction are subject to change if the change is absolutely necessary. The Company reserves the right to use any item held under a consignment agreement for the purpose the Company deems appropriate in producing printed matter related to the Company’s website.
• ③ Any person or entity is allowed to be present and entrust items for auction, and all Consignors must pay the Company an entry fee of ₩100,000 in advance, which includes a catalog registration fee, an evaluation fee, a storage charge, and charges for failure. The Consignor must pay a fee for special appraisal services conducted for a certain item and the appraisal fee will not be returned to the Consignor even if their bid has failed. Consignors cannot bid on the items they have entrusted.
• ④ An auction is conducted in the numerical order of the items listed in the catalog. The Company may cancel an auction for items scheduled to be sold without notice, put up multiple items with the same number in multiple listings or items with different numbers in a single listing.
• ⑤ The auctioneer shall call out the highest bid more than once and conclude the auction by the fall of the hammer and calling the paddle number of the highest bidder, determining the Successful Bidder and the Winning Bid.
• ⑥ The auctioneer may determine whether a bidder is qualified if a dispute has arisen among bidders or if the validity of a bid is questionable, or may put up the item in question for resale. After the Successful Bidder has been selected and the auctioneer proceeds to the next item, the result of the previous auction cannot be disputed.
• ⑦ Asking prices: The auctioneer may at their sole discretion determine the and shall present increments in the before the auction commences. Bidders may present an oral proposal of the desired price but the proposal may not be accepted by the auctioneer.
• ⑧ The Company may place bids on behalf of the Consignor up to the amount of the Reserve Price to maintain the price. If a bid fails to reach the Reserve Price, the bid will not be effective.

Article 6. Bid Types and Winning Bid

• ① Only Members of the Company or those duly authorized by Members are permitted to bid at auctions.
• ② Open Bid: Members who w to place bids shall complete a registration form given by the Company, receive an auction paddle, be present at the auction site, and make a bid by raising their paddle at the auctioneer’s asking price.
• ③ Written Bid: Bidders who cannot attend the auction in person for any reason may participate by written bids in the form given by the Company.
• ④ Telephone Bid: Bidders who cannot participate in person or by a written bid for any reason may participate by telephone in the way specified by the bidder. Telephone bids are recorded to avoid disruption or interruption of the auction.
• ⑤ Winning Bid: Any bidder who submitted the highest price above the reserve price in person, in writing, or by telephone will be deemed as the successful bidder.
• ⑥ Priority of Winning Bids: If bidders attending in person, by telephone, or in writing submit identical bids, priority will be given in order of bids received in writing, in person and by phone. In case of more than two identical written bids, any written bid submitted first to the Company will be selected.
• ⑦ Consignors cannot bid on their own items.

Article 7. Bidder’s Duties

• ① The artist name, title, material, dimensions, and origin of an artwork stated in a catalog are only the statement of the bidder and may not be absolutely true or factual.
• ② The Company enters each auction item “as it is” without any change. It is the responsibility of the Bidder to conduct a thorough investigation of the desired item prior to the auction. The Company’s warranty does not cover any description or image (plate) of any artwork provided in connection with the condition and attributes of the work except as set forth in Article 11 of the Terms and Conditions. It is also the sole responsibility of the Bidder to determine whether or not the work has been damaged or restored, the presence of any error or omission in the description of the work contained in the catalog, and discrepancies between the presented image and the actual work. The Company will conduct the auction on the assumption that the Bidder has ed all those responsibilities

Article 8. Payment of Buyer’s Premium and Purchase Price by the Successful Bidder and Delivery of Items

• ① The Buyer’s Premium payable to the Company in connection with any auction item shall be fifteen percent (15%) of the Winning Bid (VAT-exclusive).
  
  • For instance, if the item is sold for ₩10,000,000:
    10,000,000 x 15% = 1,500,000
    A buyer’s premium of ₩1,500,000 and a VAT of ₩150,000 must be paid.
    The total purchase price will be ₩10,000,000 (winning bid) + ₩1,500,000 (buyer’s premium) + ₩150,000 (VAT) = ₩11,650,000.
  • ② Payment of the price for the artwork sold
    1. The Successful Bidder must pay the full bid amount (total purchase price) including the winning bid and the buyer’s premium within seven (7) days after winning the bid (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000).
    2. The Successful Bidder will be charged a late payment fee at an annual rate of 18% based on the number of delay days if the bidder fails to pay the full purchase price within seven (7) days of the auction date (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000).
    3. The Company will demand the Successful Bidder to pay the full purchase price if the bidder fails to pay the full purchase price within seven (7) days of the auction date (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000). If the bidder fails to pay in full the sum of the total purchase price and interest charged on late payment within thirty (30) days of the auction date, the Company may cancel the winning bid and reserves the right to put the item up for resale or dispose of it in other ways. After sending notice to the Consignor, the Company may claim charges against the Successful Bidder for breach of contract and may charge the Successful Bidder for all administrative expenses which the Successful Bidder has an obligation to pay.
    4. The Successful Bidder may pay the total purchase price through any method specified by the Company including cash, cheque, fund transfer, or remittance to the Company’s bank account.
    5. The Successful Bidder is not permitted to cancel the Winning Bid, but if such cancellation is absolutely necessary, may only cancel the bid with the Company’s approval and the Consignor’s consent by paying a penalty equal to thirty percent (30%) of the Winning Bid within ten (10) days of cancellation. (Members who have cancelled bids, however, may be subject to restrictions on eligibility.) Furthermore, the Company may charge the Successful Bidder for damages arising out of such cancellation of the bid.
    6. The Company shall allow Bidders to thoroughly study and examine all items up for sale in person through an exhibition (preview) of such items prior to the auction. All Bidders are advised to think carefully about placing bids because no winning bid is allowed to be cancelled. The warranty provided for the condition of items up for auction by the Company applies at the time of the auction.
• ③ Before placing a bid, all Bidders are advised that the export or transfer of cultural property or any artifact abroad is prohibited under the Cultural Property Protection Act.
• ④ Delivery of works (items): Buyers must take over a purchased item within seven (7) days of payment of the full price and must pay the charge for storage specified by the Company in case of delayed take-over. If the Buyer fails to take over the item within twenty one (21) days of payment of the full price, the item will be transported to a general warehouse, and the Company is not responsible for any destruction or damage to the item unless it is caused by gross negligence or misconduct on the Company’s part.
• ⑤ (Transfer Tax)
  A transfer tax is imposed on the income earned in the transfer of any Korean painting or calligraphic work or antique. Any item whose transfer value is greater than ₩60,000,000 is subject to transfer tax except the works by living Korean artists as of the date of transfer. The tax rate is twenty percent (20%) of the gain on transfer. If the justification for the purchase cost is insufficient, an amount equal to eighty percent (80%) of the transfer value (90% if the retention period is more than ten (10) years) will be counted as required expenses. A Korean painting or calligraphic work or antique subject to transfer tax includes any of the following:
  
  • 1. Any one of the following among paintings, calligraphic works or antiques:
  • A. Paintings, drawings, pastel artworks (limited to hand-drawn works, excluding designs and manufactured ornaments), collage, and other similar plaques;
  • B. Original prints, woodcuts, engravings or lithographs; and
  • C. Antiques, limited to those created more than 100 years ago.
  • 2. Any other painting, calligraphic work or antique except those described in 1, with artistic merit or historical importance, as specified in a Decree of the Ministry of Strategy & Finance as agreed upon between the Minister of Strategy & Finance and the Minister of Culture, Sports and Tourism.

Article 9. Consignor’s Duties, Consignment Fee, and Payment

• ① The Company may restrict the submission of any consigned item if:
  
  • 1. The authenticity of the work is disputed;
  • 2. The work is not appropriate for the auction or not suitable as an auction item;
  • 3. The item is a pure work of art that was produced less than three years ago.
• ② Consignor’s Duties
  
  • 1. The Consignor must warrant that the Consignor is the sole owner of the item to be consigned and has the right to consign the item.
  • 2. The Consignor must warrant that the item to be consigned has never been offered for any bond, debt obligation, lien, or encumbrance.
  • 3. The Consignor must warrant that the ownership of the item to be consigned and all accompanying rights will be transferred to the buyer upon acceptance of the winning bid.
  • 4. The Consignor must warrant that none of its consigned items that are cultural property or artifacts violate the Cultural Property Protection Act. If any item of cultural property or artifact consigned to the Company is found to be either an illegal item such as buried cultural property, illegally excavated article, or stolen property, or a forged item, the Consignor will be held liable for any civil or criminal charges and must immediately refund the full amount of the consignment fee and pay the damages suffered by the Company, and the Company is in no way responsible or liable.
  • 5. The Consignor has an obligation to comply with the Auction Terms and Conditions upon signing the written consignment agreement and is not permitted to cancel consignment of items. If such cancellation is absolutely necessary, the Consignor must pay a cancellation fee equal to 10% of the average price of presale estimates within seven (7) days of notice of cancellation.
  • 6. The Consignor must take over any item that failed to sell at auction within fifteen (15) days of the auction and the Company is not responsible for any destruction or damage to the item that may occur 15 days later unless it is caused by gross negligence or willful misconduct on the Company’s part. The Consignor must also pay the charge for storage specified in the Company’s rules.
• ③ Consignor’s duty to immediately take over items
  The Company will promptly conduct an appraisal of each item consigned by the Consignor and, upon finding that the consigned item is not suitable for auction, shall immediately notify the Consignor. The Consignor must take over the item for the period immediately upon receipt of notice. The Company is not responsible for destruction, damage or loss that may arise during the period for which the item is not taken over. The Consignor is responsible for all the expenses incurred during the take-over.
• ④ Consignment fee
  A consignment fee shall be (i) fifteen percent (15%) of a winning bid (VAT exclusive) if the winning bid is less than ₩3,000,000 or (ii) the sum of the amount referred to in (i) and ten percent (10%) of any amount in excess of ₩3,000,000. The value added tax (VAT) shall be added to the aforementioned sum. However, a discount on the consignment fee will be offered based on the annual aggregate of the bids on consigned items, as specified in the Company’s rules.
  
  (Example 1) If the winning bid is ₩3,000,000:
  1) The consignment fee is ₩495,000, the sum of the pretax consignment
     3,000,000 (winning bid) X 15% = ₩450,000 and the VAT of ₩45,000.
  2) The consignment price is: ₩3,000,000 (Winning Bid) - ₩495,000 (consignment fee) = ₩2,505,000.
  
  (Example 2) If the winning bid is ₩10,000,000
  1) The consignment fee is ₩1,265,000, the sum of the pretax consignment fee of (3,000,000 X 15%)+(7,000,000 X 10%) = ₩1,150,000 and the VAT of ₩115,000.
  2) The consignment price is: ₩10,000,000 (winning bid) - ₩1,265,000 (consignment fee) = ₩8,735,000.
• ⑤ Payment of the purchase price
  The Company shall pay the net amount of the consignment price excluding the consignment fee and administrative expenses within fifteen (15) days of the auction date (twenty five (25) days if the Winning Bid is greater than ₩300,000,000) in connection with the purchase price for the sold item collected from the Successful Bidder.
  However, if the Company fails to pay the consignment price within the aforementioned period due to delays in the payment of the price by the Successful Bidder, the Company will pay the price within seven (7) days of the date the purchase price is collected from the Successful Bidder.

Article 10. Post-Auction Sale

• ① Any work consigned by the Consignor will be kept in the custody of the Company for a week after the work has failed to be sell at auction unless the Consignor expressly refuses to do so and the re-entry of the work for post-auction sale will be deemed as approved by the Consignor, provided that not all works failing to sell at auction will be entered for post-auction sale and that whether or not to enter items for post-auction sale will be determined by the Company unless expressly requested by the Consignor.
• ② Written bids will be entered for post-auction sale and the bid closing time will be two o’clock in the afternoon five (5) business days after the closing date of the auction..
• ③ Post-auction sales are also subject to I AUCTION CO., LTD.’s Terms and Conditions.

Article 11. Shipping and Insurance

• ① (Shipping) – If the Consigner or the Successful Bidder items to be delivered, the Company may arrange shipping and insurance at the risk and expense of the Consignor or the Successful Bidder.
• ② (Insurance) – The Consignor must provide a certificate of insurance to the satisfaction of the Company during the period from delivery of an auction item to the Company until the date the Company no longer keeps the item in its custody, or during a period of fifty (50) days from the scheduled auction date. The Company may arrange insurance on behalf of the Consignor at the risk and expense of the Consignor.

Article 12. Warranty

• ① The Company as a broker limits its warranty to the auction items whose headings are in boldface in the catalog. The warranty does not cover supplementary descriptions contained in the catalog, presale estimates, and other information provided orally or in writing by an employee of the Company which are only for reference only.
• ② A written warranty not exceeding the limits of the warranty described above may be issued at a successful bidder’s request.
• ③ The Company as a broker limits the warranty period to three (3) years from the auction date and the Company will cancel the winning bid and refund the full amount of the bid and fees if the warranty is found to be invalid during that period, provided that the Successful Bidder meets the following requirements:
  
  • 1. If the Successful Bidder wishes to dispute the warranty of the Company, the Successful Bidder must submit to the Company a written statement specifying the auction date, the item number, and the reasons for disputing the warranty in connection with the item (work) in question.
  • 2. The Successful Bidder must submit a written claim to the Company within three (3) months after the warranty of the Company first becomes questionable.
  • 3. The Successful Bidder must deliver to the Company the item in question in the same condition as it was put up for auction.
• ④ In case of any disagreement between the Company and the Successful Bidder over the reasons provided by the Successful Bidder, the Company may request the Successful Bidder seek a written opinion from two (2) experts in the relevant area to determine the authenticity of the work in question. Those experts must be the persons whose qualifications both the Successful Bidder and the Company have acknowledged. The Company may at its own cost seek an additional expert opinion.
• ⑤ (Warranty Exceptions)
  
  • The following are not covered by the warranty:
  • 1. Where the prevailing expert opinion on an item at the time of the auction has changed or is disputed;
  • 2. Where the possibility of disagreement in academia or among expert groups has been notified either through a catalog or at the auction site;
  • 3. Where evidence in support of a dispute over the warranty has been provided through means not generally used at the time of the auction, impractically expensive, or involving destructive testing.
• ⑥ If the Company is held liable for warranty, the Consignor of the work in question shall an obligation to repair.
• ⑦ (No Assignment)
  No assignment of any part of the warranty is permitted. This warranty is made only to the original buyer. In the event that the item in question is handed over to a successor because the original buyer dies within three (3) years of the auction, the warranty will be transferred to the successor.
• ⑧ (Limited Liability)
  The Company’s warranty liability is limited to the amount that a successful bidder has actually paid to the Company. In other words, the Company does not pay for any loss arising out of interest rate changes or currency value changes.

Article 13. Protection of Personal Information

• ① The Company limits the collection of personal information to the minimum amount necessary to an agreement or provide necessary information. The following includes the required personal information and other information is optional:
  
  • 1. Name
  • 2. Foreigners: Alien registration number
  • 3. Address
  • 4. Phone number
  • 5. Desired ID (for Members)
  • 6. Password (for Members)
  • 7. E-mail address (or mobile phone number)
• ② The personal information thus provided cannot be used for any other purpose or given to any thid party without the User’s written or electronic consent containing the User’s official electronic signature, except where disclosure is absolutely necessary or required by law. When the Company makes personal information available to a third party, the Company is required to obtain the consent of the User to disclosure of that personal information.

Article 14. Changes, Amendments or Additions

• ① The Company shall post these Terms and Conditions on its website and post catalogues, receipt/issue slips, and a consignment agreement where they are clear and readily available to Users.
• ② The Company must explain important terms and conditions to avoid misunderstandings by Users.
• ③ The Company may change these Terms and Conditions to the extent such changes does not violate any applicable laws including the Regulation of Standardized Contracts Act.
• ④ If any change is made to these Terms and Conditions, the Company must post a notice on the homepage of its website comparing the terms and conditions before and after the change, at least seven (7) days prior to the effective date.

Article 15. Jurisdiction and Governing Law

• ① The Company shall set up and operate a grievance mechanism to pay close attention to legitimate concerns or complaints brought up by users and handle such complaints with appropriate compensation.
• ② The Seoul Central District Court has jurisdiction to settle any dispute arising between the Company and a User in a commercial transaction.
• ③ Any dispute arising between the Company and a User in a commercial transaction shall be governed by the laws of the Republic of Korea.

ONLINE AUCTION TERMS AND CONDITIONS

Article 1. (Purpose)

These Terms and Conditions describe the procedures and general requirements for an online auction held by I AUCTION CO., LTD. (hereafter the “Company”) on the Company’s website (www. insaauction.com) and the rights and duties of those involved in the auction.

Article 2. (Definitions)

• ① “In-house Auction” means an on-site auction held by I AUCTION(www.insaauction.com) in accordance with the Auction Terms and Conditions and Important Notice.
• ② “Auction Catalog” means a book published by I AUCTION in connection with an In-house Auction containing descriptions and information about items to be sold at auction (including electronic catalogs). “Auction Catalog, etc.” means all forms of materials provided by I AUCTION in connection with an Auction Catalog and the relevant auction, including, but not limited to the website of I AUCTION, e-mail, text messages, smartphone apps, list books, brochures, condition reports, proposals, research materials, screens used at an auction site, promotional materials, advertising materials, and printed matter.
• ③ “Deadline date for auction” means, in respect of any lot, the date on which such lot is scheduled to be sold at an Auction Period. “Deadline time for auction” means, in respect of any lot, the time on which such lot is scheduled to be sold at an Auction Period. “Final Deadline time for auction” means, in respect of any lot, the time on which such lot is scheduled to be really finished at an Auction Period.
• ④ “Auction Period” means the length of time for which an In-house Auction is held including the auction commencement date.
• ⑤ “Bidder” means any individual or company that submits an auction bid to I AUCTION to attend an In-house Auction and purchase an item; any individual or company whose bid has been accepted by I AUCTION or, if applicable, that has received a written confirmation from I AUCTION in accordance with the Auction Terms and Conditions and Important Notice.
• ⑥ “Business Day” means any calendar day excluding Saturdays, Sundays or public holidays of South Korea.
• ⑦ “Successful Bidder” means any individual or company that attends an auction held by the Company and is selected by the auctioneer as the highest bidder in accordance with the Auction Terms and Conditions.
• ⑧ "Cancellation Fee” means an amount equal to thirty percent (30%) of the winning bid on an auction item.
• ⑨ “Award Fee” means an amount owed by a Successful Bidder to I AUCTION that is the sum of all taxes, expenses, charges and costs, including exchange charges, a charge for storage, packaging, delivery and shipping insurance costs, which I AUCTION, its managers, staff, employees, and/or agents has paid in connection with the sale of auction items in accordance with the Auction Terms and Conditions and/or Important Notice.
• ⑩ “Buyer’s Premium” means a fee that a Successful Bidder owes to I AUCTION for the auction item purchased under an auction agreement in accordance with the Auction Terms and Conditions.
• ⑪ “Consignor” means any individual or company that enters into a consignment agreement with I AUCTION to deliver a proprietary item such as an artwork owned by the individual or company to an In-house Auction before the auction commencement date, and that desires to sell the item through the Company’s auction process.
• ⑫ “Pre-sale Estimate” means the price range of an auction item determined by I AUCTION at its sole discretion. The estimated price range is represented by the Company as low and high pre-sale estimates. The Pre-sale Estimate is offered to Bidders for convenience only and determined irrespective of the actual winning bid. The Company is not responsible for the citation of such Pre-sale Estimates made outside an auction.
• ⑬ "Starting Bid" means the starting price for an auction item determined by I AUCTION and the auctioneer at their sole discretion.
• ⑭ "Winning Bid" means the price at which an item is sold at auction, where the sale of the item concludes with the fall of the auctioneer’s hammer and the picking up of a numbered paddle in accordance with the Auction Terms and Conditions.
• ⑮ "Purchase Price” means the sum of the Winning Bid and the Buyer’s Premium for an auction item.
• ⑯ “Reserve Price” means a hidden minimum price for an auction item determined prior to the auction, either as agreed upon in writing between the Seller of the auction item and I AUCTION (if the Consignor is the Seller), or as determined by I AUCTION (if I AUCTION is the Seller). A Reserve Price is not made known to Bidders and may be used as the Starting Bid with the consent of the Consignor.
• ⑰ “Seller” means either I AUCTION or a Consignor who is a party to an auction agreement in connection with an auction item.
• ⑱ The due dates calculated hereunder include non-working days unless otherwise specified. Non-working days are based on bank business days.

Article 3. (I Auction as agent or as the Seller)

Except in respect of any lot of which I Auction is the Seller, I Auction shall act as agent of the Consignor (being the Seller) in selling the Consignor's lot in an Auction. The contract for the a lot shall be made between the Seller and the Buyer.

Article 4. (Previews)

• ① I Auction will hold preview(s) of lots scheduled to be sold at an Auction which will be open to the public and free of charge, provided however, that I Auction may, in its sole and absolute discretion, require proof of identity satisfactory to it before admitting any person to any preview and/or refuse admission of any person to any preview.
• ② I Auction may give notice of the place, date, time and duration of any preview in the relevant Auction Catalogue and/or elsewhere. I Auction may, in its sole and absolute discretion, cancel, or change the place, date, time and/or duration of, any preview without prior notice. I Auction may, in its sole and absolute discretion, determine not to sell any lot exhibited at a preview in the relevant Auction or any Auction at all.

Article 5. (Members)

• ① A person who wishes to participate in an online auction at I AUCTION must register with I AUCTION online and must be verified on their mobile phone to be permitted to bid if they participate for the first time.
• ② The Company may limit or suspend the eligibility of a Member if the Member:
  • 1. Provided false information in their registration form;
  • 2. Failed to fulfil the obligations applying to all Members who participate in an auction, including an award fee;
  • 3. Caused a major disruption to the auction process by preventing other bidders from participating in an auction, distributing false information, or using another member’s name;
  • 4. Committed illegal activity, violated the Terms and Conditions, or otherwise engaged in anti-social activity in connection with an auction;
• ③ Members who repeat the same act more than twice for which their eligibility has been limited or suspended by the Company or who fails to cure the breach within thirty (30) days of notice may be stripped of their eligibility permanently.
• ④ The Company will delete the membership of any Member stripped of their eligibility for the reasons described above. That Member will be notified of deletion of their membership and the annual membership fee already paid will not be refunded.
• ⑤ Any notice required to be given hereunder will be sent to the e-mail address that the Company agreed to assign each Member.

Article 6. (Bidder registration)

Unless otherwise agreed in writing with I Auction prior to the start date of the relevant Auction Period, prospective Bidders, including first-time prospective Bidders, shall register and/or apply to place bids in an Auction by completing and sending to I Auction the relevant registration form and any supplementary document specified in such registration form and/or requested by I Auction in accordance with the Important Notices. Registration of prospective Bidders and application to place bids in writing or by telephone will be conducted as prescribed in the relevant Important Notices. I Auction shall use reasonable endeavour to process any registration and/or any application to place bids, provided however, that I Auction shall not be responsible for any failure to do so or delay in doing so, or for any error and/or omission by I Auction, its directors, officers, employees and/or agents in processing such registration and/or application, howsoever caused.

Article 7. (Consignment of Items and Payment of Consignment Fee)

• ① Consignors may consign their items to online auctions held at I AUCTION.
  • The Company may restrict any submission if:
  • 1. The authenticity of the work is, or is likely to be, disputed;
  • 2. The work is not appropriate for the auction or not suitable as an auction item;
  • 3. The Consignor and the Company fail to reach a reserve price on the work.
• ② The Consignor must pay a fee for special appraisal services conducted for a certain item at the rate specified in the Company’s rules (Rules for Special Appraisal Fees) if such special appraisal for that item is deemed necessary. The appraisal fee will not be returned to the Consignor even if their bid has failed.
• ③ The Consignor has the following duties and responsibilities:
  • 1. The Consignor shall have the right to dispose of any work consigned by the Consignor.
  • 2. The Consignor has an obligation to warrant that no one else has any right whatsoever over any item consigned by the Consignor such as lien and pledge.
  • 3. The Consignor has a responsibility to guarantee that ownership of any consigned item sold at auction is transferred to the buyer upon acceptance of the winning bid.
  • 4. If a decision is made not to sell a consigned item at I AUCTION, the Company shall notify the Consignor and the Consignor shall take over the item within five (5) days of notice. The Consignor cannot hold the Company responsible for any damage or loss to the work arising from delayed takeover and the charge for storage specified in the Company’s rules will be collected seven (7) days after notice.
  • 5. The Consignor must warrant that none of its consigned items violate the Cultural Property Protection Act. If any consigned item is found to be an illegal item, such as buried cultural property, illegally excavated article, or stolen property, the Consignor will be held liable for any civil or criminal charges and must immediately refund the full amount of the consignment fee and pay the damages suffered by the Company.
• ④ The Consignor is not permitted to cancel consignment without permission once a consignment agreement has been prepared. If such cancellation is absolutely necessary, the Consignor must pay the Company a penalty in the sum of the consignment fee and the buyer’s premium within ten (10) days of notice of cancellation. The fee shall be determined based on the assumption that an average price of the Presale Estimate is the winning bid as described in Article 9. The Company may claim damages for cancellation of consignment by the Consignor, irrespective of the penalty described above.
• ⑤ The Consignor must take over items that failed to sell at auction within fifteen (15) days of the auction and the Company is not responsible for any damage that may occur 15 days later. The Consignor must also pay the charge for storage specified in the Company’s rules.
• ⑥ When a consigned item is sold at auction, the Company will pay the Consignor the amount calculated after subtracting the consignment fee and administrative expenses from the winning bid within thirty (30) days of the auction’s closing (within forty five (45) days if the Winning Bid is greater than ₩300,000,000). However, the payment of the consignment fee may be put on held until the aware fee is fully paid. If the consignment fee payment becomes due on a non-working day, the payment due date may be extended for two business days.

Article 8. (Estimate Price and Starting Price)

• ① I Auction may provide a lower Estimate Price, a higher Estimate Price and/or a Starting Price for each lot in Korean Won, US Dollar, Hong Kong Dollar and/or Chinese Yuan in the relevant Auction Catalogue and/or elsewhere during the relevant Auction Period. I Auction may, in its sole and absolute discretion, change at any time before and up to the time of the sale of any lot the Estimate Price or Starting Price of such lot without prior notice. Estimate Price or Starting Price will not include the Buyer's Premium and/or any Buyer's Expenses payable by the Buyer to I Auction. Estimate Price or Starting Price provided by I Auction will be for reference only and shall not be an indication of the value or the Hammer Price of the relevant lot. I Auction shall not be responsible for any Estimate Price or Starting Price being quoted in the public.
• ② Except as otherwise expressly provided in these Auction Terms and/or the Important Notices, the Estimate Price or Starting Price shown in US Dollar, Hong Kong Dollar or Chinese Yuan in any Auction Catalogue and/or elsewhere will be for reference only and all bids and payment shall be in Korean Won. In respect of Estimate Price or Starting Price provided in an Auction Catalogue and/or elsewhere, the relevant Important Notices will contain the rates of exchange used for converting the Estimate Price or Starting Price expressed in Korean Won into US Dollar, Hong Kong Dollar or Chinese Yuan. Such rates of exchange will be obtained on practicable date prior to the printing of the relevant Auction Catalogue and may change at any time thereafter. No representation is made that any of the US Dollar, Hong Kong Dollar or Chinese Yuan amounts shown in any Auction Catalogue and/or elsewhere could have been or could be converted into Korean Won (or vice versa) at the specified rates, at any particular rates or at all. I Auction shall not be responsible for any error or omission, however caused, arising from, or in connection with, conversion of Estimate Price or Starting Price expressed in Korean Won into US Dollar, Hong Kong Dollar or Chinese Yuan.

Article 9. (Conduct of Auction and conclusion of the sale of a lot)

• ① I Auction may give notice of the scheduled date, time, duration and place of an Auction in the relevant Auction Catalogue and/or elsewhere, provided however, that I Auction may, in its sole and absolute discretion, cancel, or change the date, time, duration and/or place of, any Auction at any time without prior notice.
• ② Each of I Auction and the auctioneer may, in its sole and absolute discretion, refuse admission of any person to any Auction and/or reject any bid (whether made in person, in writing or by telephone) placed in any Auction.
• ③ Each lot shall be sold subject to the Reserve Price of such lot and the auctioneer shall not accept any bid below such Reserve Price in principle. The auctioneer shall keep the Reserve Price confidential. The auctioneer may place bids on behalf of the Seller below the Reserve Price or Starting Price by either placing consecutive bids or entering bids in response to bids placed in person, in writing or by telephone (as the case may be). The auctioneer may, in its sole and absolute discretion, start the bidding of any lot below the Reserve Price or Starting Price of such lot, and may accept bids below the Reserve Price or Starting Price without prior consent from the Consignor. The auctioneer shall not place any bid on behalf of the Seller at or above the Reserve Price. The auctioneer shall not be obliged to specifically identify bids placed on behalf of the Seller.
• ④ A Bidder may place bids in person, in writing or by telephone, subject to, and in accordance with, these Auction Terms and/or the Important Notices. All Bids placed may be recorded or documented and Bidders shall be deemed to have consented to the recording and documentation of their conversations by placing bids.
• ⑤ Subject to Clauses 9.6 and 9.7:
  9.5.1 in the case of bids placed in person, the Bidder shall place his/her bid by raising his/her paddle after the auctioneer's call in the auction hall; 9.5.2 in the case of written bids, the auctioneer will call out such bids in the auction hall before commencing to receive bids placed in person or by telephone; and/or 9.5.3 in the case of bids placed by telephone, I Auction's staff will place bids on behalf of the Bidder in the auction hall.
• ⑥ In respect of a lot, I Auction shall use reasonable endeavour to receive any written bid or telephone bid, provided however, that I Auction shall not be responsible for any failure to do so or delay in doing so, or for any error and/or omission by I Auction, its directors, officers, employees and/or agents in receiving such bid, howsoever caused.
• ⑦ If, in respect of a lot, any written bid or telephone bid is received by I Auction in accordance with these Auction Terms and/or the Important Notices, I Auction shall use reasonable endeavour to place such bid, provided however, that I Auction shall not be responsible for any failure to do so or delay in doing so, or for any error and/or omission by I Auction, its directors, officers, employees and/or agents in placing such bid, howsoever caused.
• ⑧ In respect of a lot, if a written bid and a bid in person, or a written bid and a bid by telephone, have the same bid price, the Bidder has priority in the order of written bid, in person and Telephone subject to, and in accordance with, these Auction Terms. If two written bids for a lot have the same bid price, the Bidder of the written bid first received by I Auction will be declared the Buyer subject to, and in accordance with, these Auction Terms.
• ⑨ I Auction may, in its sole and absolute discretion,
  • (i) withdraw any lot at any time before the scheduled time of sale of such lot without prior notice;
  • (ii) combine any two or more lots without prior notice;
  • (iii) re-commence during the relevant Auction Period, the auction of any lot which was previously put up for sale during such Auction Period but not sold without prior notice; (iv) in the event of any error arising in relation to, or any dispute among the Bidders over the validity of, bids placed in respect of a lot, determine the Buyer of, continue the bidding process of, cancel the sale of, and/or put up for resale, such lot; and/or
  • (v) in the event that any dispute over the authenticity of any lot, or the validity of the sale of any lot, has arisen or may, in I Auction's sole opinion, arise, refuse to place such lot in an Auction, discontinue the bidding process and/or cancel the sale. In the event that the bidding process or the sale of a lot is discontinued or cancelled in accordance with this Clause 9.9, the Buyer's sole and exclusive remedy against I Auction and/or the Seller, as the case may be, shall be the refund of the Purchase Price paid by the Buyer for such lot (if any). Neither I Auction nor the Seller shall be liable for any special, indirect or consequential loss including, but not limited to, loss of profits or loss of interest. For the avoidance of doubt, I Auction shall not be liable to pay any interest or indemnify any loss incurred as a result of any foreign exchange rate fluctuation or otherwise.
• ⑩ Without prejudice to Clause 9.2, the contract between the Seller and the Buyer for any lot shall occur immediately upon the auctioneer accepting the highest bid by striking his/her hammer and calling out the paddle number of the relevant Bidder. The Buyer shall sign a Successful Bidding Confirmation confirming the purchase by him/her of a lot on the date of the sale of such lot (where the Buyer made his/her bid in person and is present in the auction hall on the date of the sale) or as soon as practicable (where the Buyer did not make his/her bid in person or is not present in the auction hall on the date of the sale).
• ⑪ Risk associated with, and responsibility for, a lot will pass to the Buyer from the earlier of
  • (i) the expiration of seven calendar days from, but not including, the date of the sale of such lot, and
  • (ii) the date of collection of such lot by the Buyer or its authorised representative. Title to the lot, however, will not pass to the Buyer until all amounts payable by the Buyer to I Auction (for itself and/or on behalf of the Consignor) under these Auction Terms and/or the Important Notices have been received by I Auction in good cleared funds.
• ⑫ Except as expressly provided in Clause 9.3, a Consignor shall not, directly or indirectly, place bids on his/her lots in an Auction.

Article 10. (Marketing materials)

I Auction holds the right to use any lot for any business purpose of I Auction including posting images and/or information relating to any lot in any Auction Catalogue and/or elsewhere. The copyright in all images, illustrations and/or written material produced by or for I Auction relating to any lot, including the contents of any Auction Catalogue and/or elsewhere, shall be and shall remain at all times the property of I Auction and shall not be used by the Buyer, nor by any other person, at any time without I Auction's prior written consent. Neither I Auction nor the Seller makes any representation or warranty that the Buyer of a lot will acquire any copyright or other reproduction rights in it.

Article 11. (Bidder’s Duties)

• ① The artist name, title, material, dimensions, and origin of an artwork stated in an online bid are only the statement of the bidder and may not be absolutely true or factual.
• ② The Company enters each auction item “as it is” without any change. It is the responsibility of the Bidder to conduct a thorough investigation of the desired item prior to the auction. The Company’s warranty does not cover any description or image (plate) of any artwork provided in connection with the condition and attributes of the work except as set forth in Article 11 of the Terms and Conditions. It is also the sole responsibility of the Bidder to determine whether or not the work has been damaged or restored, the presence of any error or omission in the description of the work contained in the catalog, and discrepancies between the presented image and the actual work. The Company will conduct the auction on the assumption that the Bidder has fulfilled all those responsibilities.

Article 12. (Fees)

• ① (Consignment Fee)
  • A consignment fee shall be
  • (i) fifteen percent (15%) of a winning bid if the winning bid is less than ₩3,000,000 or
  • (ii) the sum of the amount referred to in (i) and ten percent (10%) of any amount in excess of ₩3,000,000. The value added tax (VAT) shall be added to the aforementioned sum.
    
    
  • For instance,
  • 1) if the winning bid is ₩2,500,000:
    The total consignment fee will be ₩412,500,
    the sum of the pre-tax fee of 2,500,000×15%=₩375,000 and the VAT of ₩37,500.
    Therefore, the amount payable to the Consignor will be
    ₩2,500,000 (Winning Bid) - ₩412,500 (consignment fee) = ₩2,087,500.
    
    
  • 2) If the winning bid is ₩12,000,000:
    The total consignment fee will be ₩1,485,000, the sum of the pre-tax fee of
    (3,000,000×15%)+(9,000,000×10%)=1,350,000 and the VAT of 135,000.
    Therefore, the amount payable to the Consignor will be
    ₩12,000,000 (Winning Bid) -₩1,485,000 (consignment fee)= ₩10,515,000.
    
    
• ② (Transfer Tax)
  A transfer tax is imposed on the income earned in the transfer of any Korean painting or calligraphic work or antique. Any item whose transfer value is greater than ₩60,000,000 is subject to transfer tax except the works by living Korean artists as of the date of transfer. The tax rate is twenty percent (20%) of the gain on transfer. If the justification for the purchase cost is insufficient, an amount equal to eighty percent (80%) of the transfer value (90% if the retention period is more than ten (10) years) will be counted as required expenses. A Korean painting or calligraphic work or antique subject to transfer tax includes any of the following:
  
  1. Any one of the following among paintings, calligraphic works or antiques:
  • A. Paintings, drawings, pastel artworks (limited to hand-drawn works, excluding designs and manufactured ornaments), collage, and other similar plaques;
  • B. Original prints, woodcuts, engravings or lithographs; and
  • C. Antiques, limited to those created more than 100 years ago.
  2. Any other painting, calligraphic work or antique except those described in 1, with artistic merit or historical importance, as specified in a Decree of the Ministry of Strategy & Finance as agreed upon between the Minister of Strategy & Finance and the Minister of Culture, Sports and Tourism.
• ③ (Buyer’s Premium)
  A Buyer’s Premium shall be fifteen percent (15%) of the Winning Bid (the VAT exclusive).
• ④ The Successful Bidder will be charged a late payment fee at the rate specified by the Company based on the number of delayed days if the bidder fails to pay the full purchase price within seven (7) days of the auction date (within twenty one (21) days if the Winning Bid is greater than ₩300,000,000).
• ⑤ The Successful Bidder is not permitted to cancel the Winning Bid, but if such cancellation is absolutely necessary, a written notice of its intention to cancel must be sent within seven (7) days of the auction date and must pay a penalty equal to thirty percent (30%) of the Winning Bid within seven (7) days of notice of the auction date. The payment of such penalty will not affect the damages claim brought by the Company and the Consignor.
• ⑥ If the Successful Bidder fails to express its intention to buy within seven (7) days of the winning bid, the bidder will be deemed to have no intention to buy, and the Company may take the following steps:
  • 1. If the Successful Bidder fails to pay the price, the Company may cancel the bid and put the item up for resale or dispose of it in other ways. The Successful Bidder must pay a penalty equal to thirty percent (30%) of the Winning Bid. The payment of such a penalty will not affect the damages claim brought by the Company and the Consignor.
  • 2. The Company may make available to the Consignor the personal information of the Successful Bidder if the disclosure is necessary for the Consignor to proceed with a damages claim.
• ⑦ The Successful Bidder may pay the total purchase price through remittance to the Company’s bank account, cheque, cash, or card payment on a device at the I AUCTION headquarters (up to ₩3,000,000)
  (Account number of I AUCTION: 1005-501-296913, Woori Bank)
• ⑧ The Successful Bidder may pay the purchase price in instalments with the consent of the Company obtained prior to the bid.
• ⑨ The Successful Bidder must take over the purchased item within seven (7) days of payment of the full price and must pay the charge for storage specified by the Company in case of delayed take-over. In case of failure to take over the item within twenty one (21) days of payment of the full price, the Company is not responsible for damage to the item.

Article 13. (Payments of the Purchase Price and Delivery of lots)

• ① I Auction will provide to the Buyer an invoice or invoices of the amounts due from the Buyer to I Auction (for itself and/or on behalf of the Consignor) under these Auction Terms and/or the Important Notices listing the lot(s) purchased by the Buyer in an Auction, the Hammer Price, the Buyer's Premium, VAT and/or any Buyer's Expenses:
  • (i) in person on the day of the sale of the lot(s) (where the Buyer made his/her bid in person and is present in the auction hall on the date of the sale); or
  • (ii) by fax, email or by post to the billing address or email address provided by the Buyer in his/her registration form as soon as practicable (where the Buyer did not make his/her bid in person or is not present in the auction hall on the date of the sale).
• ② In respect of lot(s) purchased by the Buyer, the Buyer shall pay to I Auction (for itself and/ or on behalf of the Consignor) in accordance with these Auction Terms and/or the Important Notices:
• ②-1 the full invoiced amount; and
• ②-2 any other Buyer's Expenses incurred after the invoice(s) has/have been sent to the Buyer, within seven calendar days from, but not including, the date of the sale of the lot(s). I Auction and a Buyer may, prior to the sale of the relevant lot, agree in writing for the Purchase Price of such lot to be paid in instalments.
• ③ Unless otherwise agreed in writing between the Buyer and I Auction: (i) the Buyer shall be personally liable to pay to I Auction (for itself and/or on behalf of the Consignor) in accordance with these Auction Terms and/or the Important Notices the Purchase Price and/or any Buyer's Expenses payable by the Buyer in respect of any lot; and (ii) I Auction will not accept any payment due to it (for itself and/or on behalf of the Consignor) from any other party other than the relevant Buyer.
• ④ If, in respect of any lot, I Auction (for itself and/or on behalf of the Consignor) does not receive the full amounts payable by the Buyer under this Clause 13 within seven calendar days from, but not including, the date of the sale of such lot, I Auction may, in its sole and absolute discretion, and unless agreed in writing between the Buyer and I Auction:
• ④-1 cancel the sale of such lot and charge the Buyer the Buyer Withdrawal Fee which shall be due and payable by the Buyer on demand;
• ④-2 put up such lot for resale in another Auction;
• ④-3 disclose any personal information on the Buyer to the relevant Consignor to the extent necessary for that Consignor to claim against the Buyer;
• ④-4 set off against any amounts which I Auction or any of its Affiliate (defined in Clause 17) may owe the Buyer in any other transactions, the outstanding amount remaining unpaid by the Buyer; and/or
• ④-5 take such other action as I Auction deems necessary or appropriate, without prejudice to any other rights or remedies available to I Auction by law.
• ⑤ The Buyer may cancel his/her purchase of any lot within seven calendar days from the Sale date, if agreed previously by I Auction in writing;
• ⑤-1 by giving written notice of cancellation to I Auction; and
• ⑤-2 paying to I Auction the Buyer Withdrawal Fee, within seven calendar days from, but not including, the date of the sale of such lot. The sale will be cancelled immediately upon receipt by I Auction of such written notice and the Buyer Withdrawal Fee.
• ⑥ Unless otherwise agreed in writing between I Auction and the Buyer, I Auction will only release the lot(s) purchased by the Buyer to the Buyer or its authorised representative in accordance with this Clause 10.6. The Buyer shall collect, or procure the collection of, the lot(s) purchased by him/her at his/her risk and expense within seven calendar days from, but not including, the date of the sale of the lot(s), provided however, that I Auction shall not be obliged to release any lot:
• ⑥-1 until full payment of all amounts payable by the Buyer to I Auction (for itself and/or on behalf of the Consignor) pursuant to this Clause 13 is duly received by I Auction; or
• ⑥-2 without being provided with proof of identity of the collector and (in the case of an authorised representative) proof of authorisation, satisfactory to I Auction
• ⑦ If agreed in writing between the Buyer and I Auction, I Auction will arrange packaging, delivery and transit insurance of the lot(s) purchased by the Buyer at the Buyer's expense and risk. I Auction shall not be responsible for any damage to, or the loss of, such lot during packaging and/or the transit period of such lot, howsoever caused.
• ⑧ I Auction will keep the lot(s) sold in an Auction at no charge until the expiry of seven calendar days from, but not including, the date of the sale of such lot(s), after which the lot(s) will be stored by I Auction at the Buyer's risk. If the Buyer fails to collect any lot within such time period regardless of whether such failure is caused by I Auction's refusal to release such lot due to not having received from the Buyer the full amounts due from the Buyer to I Auction (for itself and/or on behalf of the Consignor) in respect of such lot or not having received proof of identity and/or authorisation pursuant to Clause 13.6, the Buyer shall pay to I Auction a daily storage charge of KRW 30,000 per lot.
• ⑨ If any lot is not collected by the Buyer or its authorised representative within 21 calendar days from, but not including, the date of the sale of such lot for whatever reason, I Auction shall not be liable for any damage to, or the loss of, such lot(s), howsoever caused.

Article 14. (Export and/or import licences)

The Buyer shall be responsible for obtaining any relevant export/import licences and/or permits (the "Licences") required for the export/import of the purchased lot(s). I Auction may, at the written request of the Buyer, introduce to Buyer a shipper to assist in obtaining the necessary Licences at the Buyer's expense and risk. I Auction does not accept any responsibility whatsoever in respect of such introduction. Denial of the Licences and/or delay in obtaining the Licences in respect of any lot shall not be a ground for the Buyer to cancel the sale of such lot or refuse or delay payment of the full amounts payable by the Buyer to I Auction (for itself and/or on behalf of the Consignor) pursuant to Clause 13. In particular, bidders bidding on the lots considered to be traditional Korean relics and treasures must fully understand the terms of Korea Cultural Heritage Properties Protection Law, which prohibits exportation of such lot.

Article 15. (Post-Auction Sale)

• ① Any work consigned by the Consignor will be kept in the custody of the Company for a week after the work has failed to be sell at auction unless the Consignor expressly refuses to do so and the re-entry of the work for post-auction sale will be deemed as approved by the Consignor, provided that not all works failing to sell at auction will be entered for post-auction sale and that whether or not to enter items for post-auction sale will be determined by the Company unless expressly requested by the Consignor.
• ② Written bids will be entered for post-auction sale and the bid closing time will be two o’clock in the afternoon five (5) business days after the closing date of the auction.
• ③ Post-auction sales are also subject to I AUCTION CO., LTD.’s Terms and Conditions.

Article 16. (Shipping and Insurance)

• ① (Shipping) – If the Consigner or the Successful Bidder requires items to be delivered, the Company may arrange shipping and insurance at the risk and expense of the Consignor or the Successful Bidder.
• ② (Insurance) – The Consignor must provide a certificate of insurance to the satisfaction of the Company during the period from delivery of an auction item to the Company until the date the Company no longer keeps the item in its custody, or during a period of fifty (50) days from the scheduled auction date. The Company may arrange insurance on behalf of the Consignor at the risk and expense of the Consignor.

Article 17. (No representations, warranties and liabilities)

• ① A Consignor and/or Bidder agrees and acknowledges that all statements in respect of any lot including, but not limited to, statements on authorship, title, medium and/or size, contained in any Auction Catalogue and/or elsewhere in writing or made orally by any of I Auction, its directors, officers, employees and/or agents and/or the Seller at any time, are statements of opinion and not statements of fact. So far as is permitted by law and except as otherwise expressly provided in this Clause 17, Clause 18 and/or Clause 19, all representations, warranties, conditions, guarantees and stipulations, express or implied, statutory, customary or otherwise in respect of any lot are and shall be expressly excluded (including, but without limitation, warranties, conditions as to title, rights to dispose, quiet possession, freedom from encumbrances, merchantable or satisfactory quality, fitness for purpose, description, size, quality, attribution, authenticity, medium, provenance or whether such lot is subject to copyright and/or whether the Consignor and/or the Buyer acquires copyright in such lot).
• ② So far as is permitted by law, the lots shall be sold on an "as is" basis as at the time of sale of the lots (whether or not the Buyers are in attendance in person at the Auction). Descriptions in the Auction Catalogue and/or elsewhere may on occasion make reference to particular defects or deficiencies of a lot but the absence of any such description in respect of any lot shall not mean that such lot is without defects or deficiencies. The Bidder shall be responsible for conducting his/her own research and satisfying himself/herself of the condition of the lots, including, but not limited to, damage and/or restoration of the lots and in respect of any entries provided in the Auction Catalogue and/or elsewhere. I Auction will only accept a bid from a Bidder in respect of a lot on the assumption that the Bidder has satisfied himself/herself of the condition of such lot and in respect of any entries provided in the Auction Catalogue and/or elsewhere.
• ③ So far as is permitted by law and except as otherwise expressly provided in these Auction Terms and/or the Important Notices, neither I Auction nor the Seller shall be liable to any Consignor, Bidder or Buyer for:
• ③-1 errors or omissions in information, whether oral or written, provided by any of I Auction, its directors, officers, employees and/or agents and/or the Seller, howsoever caused;
• ③-2 acts or omissions by any of I Auction, its directors, officers, employees and/or agents and/or the Seller in relation to the conduct of any Auction and/or for any matter relating to the sale of any lot, howsoever caused.

Article 18. (Limited Warranty)

• ① In respect of any lot, I Auction warrants that the headline printed in BOLD BLACK in respect of such lot on the first line in the Auction Catalogue (the "Headline") (as may be amended by any sale room notice displayed in the auction hall or I Auction official website during the relevant Auction Period) is true and accurate as at the date of the sale of such lot unless otherwise specified in the Auction Catalogue (as may be amended by any sale room notice displayed in the auction hall or I Auction official website during the relevant Auction Period) (the "Limited Warranty").
• ② I Auction shall not be liable for breach of the Limited Warranty in respect of any lot unless a Claim Letter (defined below) in respect of such lot is given by the Buyer to I Auction in accordance with this Clause 18 before the expiry of three years from, but not including, the date of the sale of such lot (the "Warranty Period").
• ③ Subject to Clause 18.2, any Buyer wishing to claim under the Limited Warranty in respect of any lot shall
  • (i) send to I Auction a letter (the "Claim Letter") stipulating the date of the sale of such lot, the lot number and the grounds for his/her claim under the Limited Warranty within three months from, but not including, the date on which he/she became aware of a possible/actual breach of the Limited Warranty; and
  • (ii) return to I Auction the relevant lot in the same condition as at the time of the sale of such lot.
• ④ In the event that there is a dispute between the Buyer and I Auction in respect of the grounds of the Buyer's claim under the Limited Warranty, I Auction may require the Buyer to obtain, at the Buyer's expense, written opinions of two experts in the field mutually acceptable to I Auction and the Buyer. I Auction shall not be bound by such written opinions provided by the Buyer and may seek additional advice from other experts in the field at its own cost.
• ⑤ The Buyer shall not be entitled to claim under the Limited Warranty in respect of any lot if:
• ⑤-1 the relevant Headline corresponded to the generally accepted opinion of scholars or experts at the time of the sale of such lot;
• ⑤-2 the catalogue description, sale room notice or I Auction official website indicated that there were possibilities of dissenting opinion(s) from scholar(s) or a group of experts on the relevant Headline; or
• ⑤-3 the breach of the Limited Warranty can be proved only by means of either a scientific process not generally accepted for use until after publication of the relevant Auction Catalogue or a process which at the date of publication of the relevant Auction Catalogue was unreasonably expensive or impractical or likely to have caused damage to the lot.
• ⑥ In the case of a breach of the Limited Warranty in respect of a lot, I Auction shall cancel the sale of such lot and refund to the Buyer the Purchase Price paid by the Buyer in relation to the lot.
• ⑦ In the event of a breach of the Limited Warranty in respect of a lot, the Buyer's sole and exclusive remedy against I Auction and/or the Seller shall be the cancellation of the sale and refund of the Purchase Price paid by the Buyer for such lot. Neither I Auction nor the Seller shall be liable for any special, indirect, consequential loss including, but not limited to, loss of profits or loss of interest. For the avoidance of doubt, I Auction shall not be liable to pay any interest or indemnify any loss incurred as a result of any foreign exchange rate fluctuation or otherwise.
• ⑧ The Buyer shall not assign or transfer the benefits of the Limited Warranty. Unless agreed in writing between I Auction and the Buyer, only the Buyer of the relevant lot as shown on the invoice issued by I Auction shall be eligible to claim under the Limited Warranty, provided that such Buyer must have remained the owner of the lot without disposing of any interest in it to any third party.
• ⑨ If the I Auction is liable for breach of the Limited Warranty obligations on behalf of the entrustor, the consignor must immediately return to the I Auction all the money received from the I Auction in connection with the lots at the Auction and shall indemnify the I Auction for any damages incurred.

Article 19. (Limited Liability)

• ① Without prejudice to Clauses 17 and/or 18 above, a Bidder's or Buyer's sole and exclusive remedy to any claim made by it against I Auction and/or the Seller arising out of, or in connections with these Auction Terms and/or the Important Notices in respect of any lot shall be damages up to the Purchase Price of such lot. Neither I Auction nor the Seller shall be liable for any special, indirect, consequential loss including, but not limited to, loss of profits or loss of interest. For the avoidance of doubt, I Auction shall not be liable to pay any interest or indemnify any loss incurred as a result of any foreign exchange rate fluctuation or otherwise.
• ② Nothing under these Auction Terms shall exclude or limit I Auction's liability in respect of any fraud, death or personal injury arising out of, or in connection with, any action or inaction by any of I Auction, its officers, employees and/or agents in relation to the conduct of any Auction and/or sale of lots.

Article 20. (Amendment to these Auction Terms and the Auction Catalogue)

• ① I Auction may, at any time, and in its sole and absolute discretion, amend the provisions of these Auction Terms and any such amendments shall be posted on the first page of I Auction official website for a period commencing seven calendar days prior to, and ending one calendar day prior to, the effective date of such amendments.
• ② I Auction may, at any time, and in its sole and absolute discretion, amend any information in an Auction Catalogue and/or elsewhere including, but not limited to, the Important Notices and any such amendments shall be posted in a sale room notice or I Auction official website during the relevant Auction Period.

Article 21. (Data Protection)

• ① Consignors, Prospective Bidders, Bidders and/or Buyers may be required to supply personal data in connection with placing bids for, and purchasing of, lots at the Auction. All personal data may be used for the following purposes: (i) all matters connected to the management and operation of I Auction's business and the marketing and supply of I Auction's services; (ii) the transfer of such data to any place in and outside of Korea; and/or (iii) any purpose relating to or in connection with compliance with any law, regulation, court order or order of a regulatory body.
• ② All personal data will be kept confidential but, subject to the provision of any applicable law, may be disclosed to or used by any of the following companies or persons, whether in or outside of Korea: (i) I Auction and/or any of its branches, subsidiaries, holding company, associated companies or affiliates of, or companies controlled by, or under common control with, I Auction (each an "Affiliate") (together the "Group"); (ii) any director, officer or employee of the Group, but only when carrying out the business of the Group; (iii) any agent, contractor, third party service provider or other person authorised by the Group to provide administrative, telecommunications, computer or insurance, shipping, or any other services to the Group in connection with the operation of its business; (iv) credit reference agencies and, in the event of default, debt collection agencies; (v) any other person under a duty of confidentiality to the Group; and/or (vi) any person to whom the Group is under an obligation to make disclosure under the requirements of any law, regulation, court order or order of a regulatory body
• ③ In general, and subject to certain exemptions, Consignors, Prospective Bidders, Bidders and/or Buyers shall be entitled to: (i) request access to his/her personal data, which shall be provided within 40 days; (ii) request the correction of his/her personal data, which shall be made within 40 days; and/or (iii) be given reasons if a request for access or correction is refused or unable to be complied with within 40 days.
• ④ Any request for access to and/or correction of Consignors, Prospective Bidders, Bidders and/or Buyers' personal data, or for information regarding I Auction's data protection policies and practices and the kinds of personal data I Auction hold, shall be sent to I Auction in accordance with Clause 21.6. I Auction will have the right to charge a reasonable fee for the processing of any data access request.
• ⑤ If a Consignor, Prospective Bidder, Bidder or Buyer is a corporate entity, I Auction shall not use the personal data of such entity's data subjects for any purpose other than the purposes for which such entity notified its data subjects at the time of the collection of the data by such entity or a purpose directly related to that purpose (except where I Auction has obtained the written consent of the data subject). The corporate prospective Bidder, Bidder or Buyer by signing the relevant registration form, confirms that (i) it has notified its data subjects that their personal data may be used for the purposes specified in Clause 21.1 and (ii) it agrees to indemnify I Auction in relation to any loss or damage suffered by I Auction as a result of its failure to notify its data subjects as set out in (i) above.

Article 22. (Miscellaneous)

• ① In the case of any failure by the Buyer to pay to I Auction any amount due to it (for itself or on behalf of the Consignor) by the relevant due date, an interest of up to 2% per month (as determined from time to time by I Auction in its sole and absolute discretion) shall accrue to the default amount on a daily basis from, but excluding, the date such payment is due to, and including, the date of actual payment of the default amount and any interest accrued.
• ② Any and all payments due under these Auction Terms and/or the Important Notices shall be payable in Korean Won. If the Buyer and I Auction agrees in writing for the Buyer to pay any amount due to I Auction (for itself and/or on behalf of the Consignor), or for I Auction to pay any amount due to it, in any currency other than Korean Won, the Buyer shall be liable to pay any currency costs including, but not limited to, bank commissions and/or charges incurred by I Auction in converting the Korean Won amounts into such other currency. Any currency conversion shall be determined by I Auction based on the rate for Korean Won provided by Seoul Money Brokerage Service on the date of payment or the specific date determined by I Auction and I Auction's decision as to such rate will be conclusive. For the avoidance of doubt, I Auction shall not be liable to indemnify any loss incurred as a result of any foreign exchange rate fluctuation or otherwise.
• ③ Any and all payments under these Auction Terms and/or Important Notices shall be made in cash or equivalent, including electronic remittance, cashier cheques and/or bank money orders in good cleared funds and in accordance with the these Auction Terms and/or the Important Notices. In respect of any payment under these Auction Terms and/or the Important Notices, if the payment due date is not a Business Day, then the immediately following Business Day will be deemed to be the payment due date.
• ④ All sums payable by the Buyer to I Auction are exclusive of any relevant tax owed by the Buyer. The Buyer shall be responsible for paying such tax at the rate and time as required by the relevant law.
• ⑤ If any part of these Auction Terms and/or the Important Notices is found by any court to be invalid, illegal or unenforceable, that part may be discounted and the rest of these Auction Terms and/or the Important Notices shall continue to be valid and enforceable to the fullest extent permitted by law.
• ⑥ All notices, requests, claims, demands and other communications to I Auction under these Auction Terms and/or the Important Notices shall be in Korean or English in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by courier service, by facsimile with receipt confirmed (followed by delivery of an original via registered mail), by email with receipt confirmed by I Auction (followed by delivery of an original via registered mail) or by registered mail to I Auction at the following address:
  
  
  • I Auction Inc.
  • 50, Samil-daero 30-gil, Jongno-gu, Seoul, Korea(#115, Ikseon-dong)
  • Tel (02) 3479 8888
  • Fax (02) 3479 8800
  • Email: iauction@insaauction.com
  
  Notices to Consignors, Bidders and Buyers shall be addressed to the address or email address specified by them in the relevant registration form.
• ⑦ Time shall be of the essence of these Auction Terms and/or the Important Notices both as regards any dates, times and periods mentioned and as regards any dates, times and periods which may be substituted for them in accordance with these Auction Terms or by agreement in writing between the parties.
• ⑧ No waiver by or on behalf of I Auction of any requirement of or any rights under these Auction Terms and/or the Important Notices shall release any other party(ies) from the full performance of its/their remaining obligations under these Auction Terms and/or the Important Notices. No single or partial exercise of or failure or delay in exercising, on the part of I Auction, any right, power or remedy under these Auction Terms and/or the Important Notices or the granting of time by I Auction shall prejudice, affect or restrict the rights, powers and remedies of I Auction under these Auction Terms and/or the Important Notices, nor shall any waiver by I Auction of any breach of these Auction Terms and/or the Important Notices operate as a waiver of or in relation to any subsequent or any continuing breach of these Auction Terms and/or the Important Notices.
• ⑨ These Auction Terms and/or the Important Notices as amended from time to time in accordance with these Auction Terms set out the entire agreement and understanding between the parties relating to the subject matter hereof to the exclusion of any terms implied by law which may be excluded by contract and supersedes any previous written or oral agreement between the parties in relation to the matters dealt with in these Auction Terms and/or the Important Notices as amended from time to time in accordance with these Auction Terms (except in respect of the rights and obligations of the Consignor and I Auction against each other in relation to the consignment of lots by the Consignor to I Auction which shall be regulated by the relevant Consignment Agreement). It is agreed that no party has been induced to enter into these Auction Terms and/or the Important Notices by any representation, warranty or undertaking not expressly incorporated in.
• ⑩ In the case of any ambiguity or discrepancy between the English, Chinese and/or Korean version of these Auction Terms, the Korean version shall prevail.

Article 23. (Jurisdiction and governing law)

These Auction Terms shall be governed by the laws of Korea. The Seoul Central District Court shall have exclusive jurisdiction to settle any disputes which may arise out of or in connection with these Auction Terms and/or the Important Notices and the parties to these Auction Terms (except I Auction) irrevocably submits to the jurisdiction of such courts and waive any objection to proceedings in any such court on the ground of venue or on the ground that proceedings have been brought in an inconvenient forum. I Auction shall have the right to bring proceedings in any court other than the Seoul Central District Court. All Consignors, Bidders and Buyers irrevocably consent to the service of process or any other documents in connection with proceedings in any court by facsimile transmission, delivery in person, delivery by mail or in any other manner permitted by Korean law, at the law of the place of service or the law of jurisdiction where proceedings are instituted, at the last address of the Consignors, Bidders or the Buyers known to I Auction or any other usual address.

Internal Rules Management

Chapter I. General Provisions

Article 1. Purpose

These Rules set forth the requirements for the overall management and appropriate disclosures of the Company’s internal information to ensure prompt and accurate disclosures and the prevention of inside trading by executive officers and employees in accordance with applicable laws including the Capital Market and Financial Investment Business Act.

Article 2. Definitions

• ① “Internal Information” as referred to in these Rules mean the disclosure obligations set forth in Part 1 of the KOSDAQ Market Disclosure Rules (hereafter the “Disclosure Rules”) and all other matters that may affect the Company’s operations and financial position and investors’ investment decisions.
• ② “Disclosure Officer” as referred to herein means a person appointed to reporting duties on behalf of the Company in accordance with paragraph 4 of Article 2 of the Disclosure Rules.
• ③ “Executive officers” as referred to herein mean directors (including any person who meets any of the requirements set forth in subparagraph 1 of paragraph 2 of Article 401 of the Commercial Code and auditors.
• ④ Terms other than those defined in paragraphs ① to ③ shall have the meanings used in applicable laws and regulations.

Article 3. Scope

These Rules apply to all cases concerning disclosures, insider trading, and internal information management except otherwise specified in applicable laws or the Company’s charter (articles of incorporation).

Chapter II. Management of Internal Information

Article 4. Management of Internal Information

• ① Executive officers and employees must keep strictly confidential the Company’s internal information disclosed or made available to them in the course of their employment and must not share such internal information in or outside the company unless it is absolutely necessary.
• ② The Chief Executive Officer (hereafter the “CEO”) shall take the necessary steps to manage the aforementioned internal information, such as developing specific criteria for the retention, delivery, and destruction of internal information and all related documents.

Article 5. Chief Disclosure Officer

• ① The CEO shall appoint a Chief Disclosing Officer and report it to the KRX. Replacement of the Disclosure Officer shall be also reported.
• ② The Chief Disclosure Officer oversees the establishment and operation of the internal information management system and performs the following duties:
  
  • 1. Implementation of disclosures;
  • 2. Monitoring and evaluation of the operation of the internal information management system;
  • 3. Reviewing internal information and determining whether or not to disclose;
  • 4. Measures necessary to operate the internal information management system such as training of executive officers and employees;
  • 5. Supervision and oversight of the department, executive officer or employee responsible for the management or disclosure of internal information; and
  • 6. Other activities deemed necessary by the CEO to operate the internal information management system.
• ③ The Chief Disclosure Officer has the following rights in performing the above-described duties:
  
  • 1. Right to demand the submission of and access to all sorts of documents and records related to internal information;
  • 2. Right to receive feedback or input from an executive officer or employee in the department responsible for accounting or auditing, or other departments responsible for generating internal information.
• ④ The Chief Disclosure Officer may consult an executive officer responsible for related duties if such consultation is necessary to perform the CDO’s duties and may at the Company’s expense seek expert assistance.
• ⑤ The Chief Disclosure Officer must report to the CEO or the board of directors the operating status of the internal information management on a regular basis.

Article 6. Disclosure Officer

• ① The CEO shall appoint a Disclosure Officer and report it to the KRX. Replacement of the Disclosure Officer shall be also reported.
• ② The Disclosure Officer shall perform the following duties under the direction of the Chief Disclosure Officer in connection with internal information management:
  
  • 1. Collecting, reviewing, and reporting internal information to the Chief Disclosure Officer
  • 2. Activities necessary to implement disclosures
  • 3. Confirming the details necessary to manage internal information such as changes in applicable laws and reporting the details to the Chief Disclosure Officer
  • 4. Other duties deemed necessary by the CEO or the Chief Disclosure Officer.

Article 7. Concentration of Internal Information

An executive officer and the head of each team/department must provide the Chief Disclosure Officer with relevant information in a timely manner when:

• 1. Internal information is generated;
• 2. the need arises to cancel or change the internal information already made publicly available; or
• 3. other request made by the Chief Disclosure Officer.

Article 8. Making Available Internal Information outside Organization

An executive officer and the head of each team/department must provide the Chief Disclosure Officer with relevant information in a timely manner in the following cases:

• ① An executive officer or employee who is required to provide internal information to a business partner, external auditor or agent of the Company, or any person or entity that entered into a consultation agreement with the Company for legal or management advice must report it to the Chief Disclosure Officer.
• ② In the case described above, the Chief Disclosure Officer must take such steps as may be necessary such as entering into a confidentiality agreement for relevant internal information.

Chapter III. Disclosure of Internal Information

Article 9. Types of Disclosure

Disclosures made by the Company are classified as follows:

• 1. Reports on and disclosures of key business information pursuant to section 1 of chapter 2 of part 1 of the Disclosure Rules;
• 2. Inquired disclosure pursuant to section 2 of chapter 2 of part 1 of the Disclosure Rules;
• 3. Fair disclosure pursuant to section 3 of chapter 2 of part 1 of the Disclosure Rules;
• 4. Voluntary disclosure pursuant to chapter 3 of part 1 of the Disclosure Rules;
• 5. Submission of a securities registration statement, etc. pursuant to chapter 1 of part 3 of the Act;
• 6. Submission of a business report, etc. pursuant to Articles 159, 160, and 165 of the Act and to section 4 of chapter 2 of part 1 of the Disclosure Rules;
• 7. Submission of key reports pursuant to Article 161 of the Act; and
• 8. Other disclosure as required by law

Article 10. Implementation of Disclosure

• ① The Disclosure Officer must prepare a report on any disclosure that needs to be made as described in Article 9 and submit it to the Chief Disclosure Officer along with the necessary documents.
• ② The Chief Disclosure Officer must make the disclosure with the CEO’s approval after determining whether or not any of the details or documents referred to above violates applicable law.

Article 11. Follow-up after Disclosure

The Chief Disclosure Officer and the Disclosure Officer must take the steps necessary to correct any error or omission in the disclosed information immediately upon discovery.

Article 12. Media Relations

• ① In case of any media request to report on the Company, the Chief Disclosure Officer is responsible for responding to such a request. If necessary, an executive officer or an employee in the relevant team or department may be allowed to speak with the media.
• ② If the Company wishes to distribute its press releases to the media such as newspapers, the Company should discuss with the Chief Disclosure Officer.
• ③ Any executive officer or employee who becomes aware of any false or misleading information published by the media must report it to the Chief Disclosure Officer and the Chief Disclosure Officer must take necessary steps.

Article 13. Business Presentations

Business presentations shall be held to discuss the business performance, plans, and prospects of the Company following discussion with the Chief Disclosure Officer.

Chapter IV. Regulations on Insider Trading, etc.

Article 14. Return of Short-term Gains

• ① Executive officers and those employees who are subject to paragraph 1 of Article 172 of the Act and Article 194 of the Enforcement Decree of the same act must return to the Company any capital gains on the sale of such securities as specified in paragraph 1 of Article 172 of the same act (hereafter “Securities”) within six (6) months of purchasing them, or any capital gains on the purchase of Securities within six (6) months of selling them (such gains are collectively referred to as “Short-term Gains”).
• ② If any one of the shareholders of the Company, including those who hold equity securities or depository securities other than stock certificates, requests that the Company demand a person who has earned Short-term Gains as is described in ① to return such gains, the Company shall take all necessary steps within two (2) months of the request.
• ③ Upon receipt by the Company of notice of the realization of Short-Term Gains as described in ① from the Securities and Futures Commission, the Chief Disclosure Officer shall immediately make available the following on the website of the Company:
  
  • 1. The status (position) of the person who is required to return Short-term Gains;
  • 2. The amount of such Short-term Gains;
  • 3. The date the notice of the occurrence of Short-term Gains is received from the Securities and Futures Commission;
  • 4. A plan to demand the return of Short-term Gain
  • 5. Shareholders of the Company may cause the Company to demand those who have earned Short-term Gains to return such gain and in case of failure by the Company to make such a demand within two (2) months of the shareholder request, shareholders may make the demand on behalf of the Company.
• ④ The disclosure due date referred to in ③ shall be the earlier of i) two (2) years from the date of notice of Short-term Gains from the Securities and Futures Commission, and ii) the date such Short-term Gains are returned.

Article 15. Notification of the Sale or Purchase of Securities

Executive officers and those employees who are subject to paragraph 1 of Article 172 of the Act and Article 194 of the Enforcement Decree of the same act must notify the Chief Disclosure Officer when conducting the sale or purchase of securities or other transactions.

Article 16. Prohibition on the Use of Undisclosed Important Information

Executive officers and employees shall not use, or allow a third party to use, the undisclosed important information specified in paragraph 1 of Article 174 of the Act, including the undisclosed important information of affiliates, for the sale or purchase of securities or other transactions.

Chapter V. By-laws

Article 17. Training

The Chief Disclosure Officer and the Disclosure Officer shall complete the training requirements for the disclosure obligations set forth in Article 36 and paragraph 5 of Article 44 of the Disclosure Rules and the Chief Disclosure Officer shall make training materials and details available to relevant executive officers and employees.

Article 18. Amendment and Abolition

Decisions to amend or abolish any of these Rules will be made by the CEO.

Article 19. Announcement of Rules

These Rules and amendments thereto shall be publicly available on the Company’s website.