home Online Auction Terms & Conditions

Article 1 ( PURPOSE )

The purpose of these terms and conditions (the “Terms and Conditions”) is to set forth the auction procedures, various standards, and the rights, obligations and responsibilities of K- Auction (the “Company”) and the visitors when the Company carries out the auction.

Article 2 (DEFINITION)

  • “Consignor” means any individual or corporation that desires to sell his or her own property, etc. through the means of the Company’s auction.
  • “Bidder” means any individual or corporation that wants to make a successful bid by participating in the Company’s auction.
  • “Buyer” means any individual or corporation that participates in the Company’s auction and has a successful bid.
  • “Member” means a person that has registered as a member of the Company by providing his or her personal information to the Company, and such Member is classified as (i) a paying member that pays the annual membership fee and (ii) the non-paying member that has registered with the Company’s homepage (www.k-auction.com) established and operated by the Company as Internet member. The paying member shall be continuously provided with the Company’s information, participate in the auction as the Bidder, and be provided with the catalogues at the time of the auction. The non-paying member shall be provided with the Company’s services through the Internet.
  • “Visitor” means Consignor, Bidder, Buyer or Member that participates in the Company’s auction or is provided with the Company’s services

Article 3 (CLARIFICATION, EXPLANATION AND AMENDMENT OF THE TERMS AND CONDITIONS)

  • The Company shall post the Terms and Conditions on its homepage and display them in a place that could be easily viewed by the Visitor and at the Visitor’s request when entering into the membership agreement or auction-related agreement, the Company shall provide the Visitor with a copy of the Terms and Conditions.
  • The Company shall explain the important contents of the Terms and Conditions when the Visitor enters into the membership agreement or auction-related agreement for the Visitor to comprehend. Provided, however, that unless there have been changes made to the Terms and Conditions, the Company shall not be obligated to re-explain to a Visitor who has previously received such explanation with the consent of such Visitor.
  • The Company may amend the Terms and Conditions to the extent of not violating the relevant laws and regulations, including the Regulation of Standardized Contracts Act and the Consumer Protection Act.
  • If the Company amends the Terms and Conditions, it shall announce such amendment together with the current Terms and Conditions on the initial screen of its homepage by clarifying the effective date of the amended Terms and Conditions (the “Effective Date”) and the reasons for amendment for a period starting seven (7) days prior to the Effective Date to one (1) day prior to the Effective Date. Provided, however, that if the Company amends the Terms and Conditions which may unfavorably affect the Visitor, the Company shall announce such amendment with a minimum thirty (30) day grace period. In such case, the Company shall clearly compare the contents before and after the amendment and mark the changes for the Visitor’s easy understanding.
  • If the Company amends the Terms and Conditions, such amended Terms and Conditions shall apply to the agreements only to be entered into after the relevant Effective Date, and the Terms and Conditions prior to the Effective Date shall apply to all agreements that have already been entered into. Provided, however, if a Visitor that has already entered into the agreement obtains the Company’s approval within the announcement period of the amended Terms and Conditions pursuant to Paragraph ○3 above, regarding its intention to be bound to the amended Terms and Conditions, such amended Terms and Conditions shall apply.
  • Any matters not provided herein and concerning the interpretation hereof shall be in accordance with the Regulation of Standardized Contracts, the relevant laws and regulations or general commercial practices.

Article 4 (METHOD AND TERM OF AUCTION )

  • The Company shall carry out the auction of the property (in a method of offline or online), provide information on the property, intermediate the sales, and perform other business
    designated by the Company. Provided, however, upon the occurrence of an unavoidable event, the Company may change the date, time, and place of the auction. Furthermore, the Company shall have the right to use the items for which the consignment agreement has been established on its homepage and related printing materials in accordance with the purposes of the Company.
  • Anyone may participate in the auction and consign the property at auction, and the Consignor shall prepay KRW100,000 for each property as the participation fee at the time of consignment, for various expenses, including the catalogue registration fee, estimation fee, custody fee, and unsuccessful bidding fee. The Consignor may not make a bid for his or her consigned auction items.
  • Only Members may make a bid and with respect to the online auction and, the qualifications to make a bid shall be separately determined.
  • Estimates: The Company shall indicate a low estimate and high estimate for the items for auction. The estimates are for the convenience of, and to provide information to the Bidder, and bears no relationship with the actual hammer price.
  • Reserves: The lowest acceptable price is established for all the items put up at auction, which shall be defined as the reserve (the “Reserve”). The Reserve shall not be disclosed to the Bidder.
  • Method of Quotation: The quotation shall entirely depend on the discretion of the auctioneer, who shall propose in advance the increase of quotation price during the process of the auction. The Bidder may propose his or own price verbally, which may not be accepted by the auctioneer.
  • The Company may make a bid on behalf of the Consignor until the price reaches the Reserve in order to protect the Reserve. If the hammer price does not reach the Reserve, such bid shall not become valid and effective.

Article 5 (METHOD OF BID AND SUCCESSFUL BID)

  • Open Bids: Any Member who wants to make a bid shall fill in the bid registration form provided by the Company, receive a bid paddle, participate in the auction and shall thereafter bid by raising the auction paddle to the quotation price of the auctioneer.
  • Absentee Written Bids: If a Bidder is unable to participate in the open bids due to reasons attributable to the Bidder, it may make an absentee written bid in accordance the form provided by the Company.
  • Telephone Bids: If the Bidder is unable to participate in the open bids or absentee written bids due to reasons attributable to the Bidder, it may make a telephone bid in accordance with the method as determined by the Company.
  • Successful Bids: The Bidder who proposes the highest price among the open Bidders, absentee written Bidders, and telephone Bidders in excess of the Reserve shall become the successful Bidder (the “Successful Bidder”).
  • Priority of Successful Bids: If the open Bidder, telephone Bidder, and absentee written Bidder wishes to make a successful bid at the same price, the priority of successful bid shall be in the order of the absentee written Bidder, the open Bidder, and the telephone Bidder. If there is more than one (1) absentee written bidder with the same bidding price, the Successful Bidder shall be the absentee written Bidder who had submitted the written bid documents to the Company at the earliest date.
  • The Auctioneer’s Discretion : The auctioneer has the right to exercise reasonable discretion as followed.
    1. The auctioneer may refuse any bid
    2. The auctioneer may advance the bidding in such a manner as he may decide.
    3. The auctioneer may exercise withdrawing or dividing any lot, combining any two or more lots.
    4. In the case of error or dispute, and whether during or after the sale, the auctioneer may determine the successful bidder, continuing the bidding, cancelling the sale or reoffering and reselling the item in dispute..
    5. If any dispute arises after the sale, then, in the absence of any evidence to the contrary the sale record maintained by the auctioneer will be conclusive.

Article 6 (PAYMENT OF BUYER’S PREMIUM AND DELIVERY OF ITEM )

  • The buyer’s premiums shall, if the hammer price is not more than KRW100,000,000, be ten percent (10%) (excluding valued added tax (“VAT”)) of such hammer price, and if the hammer price exceeds KRW100,000,000, eight percent (8%) (excluding VAT) of the excess price shall be added to the amount obtained by multiplying the hammer price by ten percent (10%) of such hammer price
    (Example 1) In case the hammer price is KRW50,000,000:
    1) The buyer’s premium shall be KRW5,500,000, which is the sum of the buyer’s premium before taxation of KRW5,000,000 obtained by applying a 10 % commission to the hammer price of KRW50,000,000 and the VAT amount of KRW500,000.
    2) The purchase price shall be KRW55,500,000, which is the sum of the hammer price of KRW50,000,000 and the buyer’s premium of KRW 5,500,000. (Example 2) In case the hammer price is KRW500,000,000: 1) The buyer’s premium shall be KRW46,200,000, which is the sum of the amount of the buyer’s premium before taxation of KRW42,000,000 calculated by the above formula (100,000,000 x 10%) + (400,000,000 x 8%) and the VAT amount of KRW4,200,000. 2) The purchase price shall be KRW546,200,000 which is the sum of the hammer price of KRW500,000,000 and the buyer’s premium of KRW46,200,000.
  • Payment of Purchase Price for Item
    1) The Successful Bidder shall, within seven (7) days (in case the hammer price is not less than KRW300,000,000, within twenty one (21) days) from the date when the successful bid is made, pay all expenses inclusive of the relevant hammer price and the buyer’s premium, etc. (the “Total Purchase Price”)
    2) In case a Successful Bidder fails to make a full payment of the Total Purchase Price within seven (7) days (in case the hammer price is not less than KRW300,000,000, within twenty one (21) days) from the date when the successful bid is made, default interest at 18% per annum shall accrue for the number of such delayed days.
    3) In case a Successful Bidder fails to make a full payment of the Total Purchase Price within seven (7) days (in case the hammer price is not less than KRW300,000,000, within twenty one (21) days) from the date when the successful bid is made, the Company shall provide notice to the Successful Bidder to pay the Total Purchase Price. If the Successful Bidder fails to fully pay the Total Purchase Price and the overdue interest within thirty (30) days from the bid date, the Company shall have the right to cancel the successful bid for the relevant item and dispose it by other means, including re-auction. In this case, the Company may notify the relevant Consignor of such fact, claim compensation for damages suffered from the breach of this Agreement against the Successful Bidder on behalf of the Consignor and have a right to claim the relevant expenses incurred therefrom, and the Successful Bidder shall be liable to pay such expenses.
    4) The Successful Bidder may pay the Total Purchase Price by means of cash, cashier’s check, wire transfer inclusive of phone banking, internet banking and mail banking, remittance to the account of the Company, settlement using mileage points, etc. provided by the Company, but not by any credit card (prohibition of settlement of the hammer price in credit cards).
    5) The Successful Bidder may pay the Total Purchase Price in installments through consultation with the Company prior to participating in the bid.
    6) The Successful Bidder shall not revoke its bid; provided, however, that if the Company deems it unavoidable and the Consignor agrees thereto, the Successful Bidder may revoke the bid after it pays a penalty equivalent to thirty percent (30%) of the hammer price within ten (10) days from the date when the successful bid is made (however, there may be limitations imposed on such Member who has revoked its successful bid to participate in future bidding). In case the Company suffers from any damages due to the revocation of the successful bid, the Company may claim compensation for damages against the relevant Successful Bidder.
    7) Since the Company displays the items for the bidding before the relevant bid commences, the Bidder shall inspect and check the item of interest directly and thoroughly before participating in such bid. The bid shall be made in a careful manner since the successful bid cannot be revoked once it is made. The guarantee for the bid items by the Company shall be made only in the case where the relevant item retains its original shape and condition at the time of the bid.
  • The Bidder shall keep in mind that any cultural properties and remains under the Protection of Cultural Properties Act shall not be exported or carried outside of Korea.
  • Delivery of Items: The Buyer shall assume title of the successfully bided item within seven (7) days from the full payment of the Total Purchase Price. In case the title of the relevant item is not assumed within such time limit, the Buyer shall pay the storage fee as determined by the Company. In case the assumption is not made twenty one (21) days after the date when the Total Purchase Price is fully paid, the purchased item shall be moved into the general warehouse and the Company shall not bear any liabilities for the destruction, loss or damage of the item unless there is any gross negligence or willful misconduct of the Company in keeping the purchased item.

Article 7 (CONSIGNOR’S DUTIES AND PAYMENT OF SELLER’S COMMISSION AND PURCHASE PRICE

  • The Company may restrict the acceptance of the following items on consignment:
    1) In case the authenticity of the item is questionable;
    ; 2) In case the item is not fit for the character of the auction, or the item is not appropriate for the auction; or
    3) In case the item is pure art and three (3) years have not passed since the date of production.
  • Duties of Consignor
    1) The Consignor shall warrant that he/she is the sole proprietor of the item on consignment and has the right to consign such item.
    2) The Consignor shall warrant that the item on consignment is not involved in any credit or debt relations, or provided as a lien or security interest.
    3) The Consignor shall warrant that the ownership and other rights related to the item on consignment shall be simultaneously transferred to the Buyer when the successful bid is made
    4) The cultural properties and remains consigned by the Consignor for the bid shall not be ones that breach the Protection of Cultural Properties Act. In case the cultural properties and remains consigned to the Company for the bid are determined to be illegal, including burials, illegally excavated articles or stolen goods, the Consignor shall refund the consignment price in its entirety, bear all damages and civil and criminal liabilities related thereto, and hold harmless the Company from any liabilities therefrom.
    5) The Consignor shall be obligated to comply with the Terms and Conditions for the bid and shall not withdraw such consignment after he/she agrees in writing the consignment agreement for the bid item. If the Consignor withdraws the consignment due to unavoidable reasons, he/she shall pay the Company a withdrawal fee in the amount corresponding to ten percent (10%) of the estimated value of the relevant item within seven (7) days from the notice of such withdrawal.
    6) If the item is unsold, the Consignor shall take over such unsold item within fifteen (15) days from the date of the auction. In this case, the Company shall not bear any liabilities for the destruction, loss or damage of the item which takes place fifteen (15) days after the auction unless there is any gross negligence or willful misconduct of the Company, and the Consignor shall pay the storage fee determined by the Company.
  • Duty of Immediate Take-Over by Consignor The Company shall appraise and judge the item immediately after the relevant item is consigned by the Consignor. In case the Company determines the item on consignment is not suitable for the auction, it shall promptly notify the relevant Consignor of such fact, and the Consignor shall take over such item without delay. In such case, the Company shall not be liable for any destruction, loss or damage of the item for the period when the Consignor does not take over the item and any and all expenses incurred during the take-over of the item shall be borne by the Consignor.
  • Seller’s Commission The seller’s commission shall be fifteen percent (15%) (excluding VAT) of a hammer price in case the hammer price is less than KRW3,000,000; if a hammer price is over KRW3,000,000, ten percent (10%) (excluding VAT) of the excess price shall be added to the amount obtained by multiplying the hammer price by ten percent (10%) of such hammer price. Provided, however, that discount benefit of the seller’s commission shall be provided on the basis of the total amount of the annual hammer for the consigned items pursuant to the regulations set by the Company
    (Example 1.) In case the hammer price is KRW3,000,000:
    1) The seller’s commission shall be KRW495,000, which is the sum of the seller’s commission before taxation of KRW450,000 obtained by applying 10 % commission to the hammer price of KRW3,000,000 and the VAT amount of KRW45,000.
    2) The consignment price shall be KRW2,505,000, which is the amount obtained by the hammer price of KRW3,000,000 less the seller’s commission of KRW495,000.
    (Example 2.) In case the hammer price is KRW10,000,000: 1) The seller’s commission shall be KRW1,265,000, which is the sum of the amount of the seller’s commission before taxation of KRW1,150,000 calculated by the above formula (3,000,000 x 15%) + (7,000,000 x 10%) and the VAT amount of KRW115,000. 2) The consignment price will be KRW 8,735,000, which is the amount obtained by the hammer price of KRW10,000,000 less the seller’s commission of KRW1,265,000.
  • Payment of Purchase Price for Consigned Item The Company shall pay the net consignment price, which is an amount obtained by deducting the seller’s commission and relevant expenses from the Total Purchase Price paid by the Successful Bidder, to the Consignor within fifteen (15) days (in case the hammer price is over KRW300,000,000, within twenty five (25) days) from the date when the successful bid is made. Provided, however, that if the Successful Bidder fails to pay the said net consignment price within the above period by the Successful Bidder’s delaying the payment of the purchase price, etc., the Company shall pay the said net consignment price to the Consignor within seven (7) days from the date when the Company receives the purchase price, etc. for the item from the Successful Bidder.

Article 8 (SHIPMENT AND INSURANCE )

  • Shipment If the Buyer or the Consignor wants the transportation of purchased or consigned item, the Company may make arrangements thereof at the liability and expenses of the Buyer or the Consignor.
  • Insurance At the liability and expense of the Consignor, the Company shall subscribe insurance by proxy for the period either from the delivery of auction item to the Company by the Consignor until the time when Company discontinues the custody and management of the item or for fifty days (50) from the scheduled auction date; provided, however, that if the Consignor wants, the Consignor may directly present an insurance policy which is satisfactory to the Company.

Article 9 (WARRANTY)

  • The Company shall warrant each item specified on the catalogues under the following provision and conditions:
  • Warranty and Limitation of Warranty The Company shall issue a certificate of authenticity within the limitation of warranty after the completion of the auction if the Buyer wants. The Company shall only warrant the boldly printed titles on the catalogues. That is, the Company shall not warrant to the supplementary explanations or other information provided by the officers and employees of the Company verbally or in writing with respect to the items specified on the categories other than the boldly printed titles on the catalogues. They are reference materials only that can be amended and are not the warranties
  • Warranty Period and Liabilities The Company shall warrant the auction items for not more than three (3) years from the date when the successful bid is made. When the warranty is proven erroneous during the above period, the sales and purchase shall be cancelled, and the hammer price and the commission shall be returned to the Buyer. In such case, the Buyer shall send a written notice to request the transaction cancellation within the warrant period, and the Company may request from the Buyer a written opinion of two (2) experts in the related filed, mutually recognized by the Company, the Buyer and the Consignor, before the Company determines such warranty.
  • Exemption of Warranty In each of the followings events, the warranty shall be exempted: 1) When an opinion on auction item is an expert’s general opinion at the time of the auction, however, such opinion is changed or there is a conflict in opinions thereafter; or 2) When the contents of the warranty is proven erroneous in a new method, not in the method generally used at the time of the auction.
  • Liability Limitation of Warranty Transfer The warranty shall be also applied to the first Buyer and the subsequent Buyer who will acquire the right to the items from the first Buyer (his or her heirs or secondary Buyer). However, in no event, the warranty liability of the Company shall exceed the amount actually paid by the Buyer.

Article 10 (LIABILITY LIMITATION AND AUTHORITIES OF THE COMPANY )

  • The Company shall do its best not to be engaged in any act prohibited herein by the laws and regulations and herein, or which is contrary to the good public order and customs, and to provide the goods and services in a continuous and stable manner as prescribed herein.
  • The liability of the Company for the successful bidder or the Buyer, in no event, shall exceed the amount actually paid by the successful bidder or the Buyer.
  • ③ If the Visitor falls under one of following events, the Company may restrict or suspend the membership or use: 1) In the event that the Visitor fills in any false information when applying for the admission; 2) In the event that the Visitor fails to pay the hammer price and other liabilities assumed by the Member with respect to the auction until deadline; 3) In the event that the Visitor disturbs business transactions by preventing others from joining the auction, distributing false information or being involved in identity theft; or 4) In the event that the Visitor is involved in any act prohibited by laws and regulations or herein or which is contrary to the good public order and customs by taking advantage of the auction.
  • In the event that after restrictions on or termination of membership, the same act is repeated more than twice or the cause of such act is not corrected within thirty (30) days, the Company may terminate the membership.
  • At the termination of membership, the Company shall cancel the registration of the Member. In this case, the Company shall notify the Member of such cancellation and shall not return the previously paid annual fee.
  • The Company may provide notice to the Member, to the email address previously designated by mutual agreement with the Member.

Article 11 (PROTECTION OF PRIVATE INFORMATION )

  • The Company shall collect the minimum information on the Visitor required to implement an agreement or provide information. The following information shall be required and others shall be optional
    1. Name
    2. Residential Registration No. (In case of the Member) or Alien Registration No.
    3. Address
    4. Telephone No.
    5. Desired ID (In case of the Member)
    6. Password (In case of the Member)
    7. mail Address (or Cell phone No.)
  • The private information provided may not be used for purposes other than its original purposes and shall not be disclosed to a third party without the written or electronic consent of the Visitor. Provided, that this paragraph shall not be applied in unavoidable events pursuant to relevant regulations. In the event that the Company provides such private information to a third party, it shall obtain prior written approval from the relevant Visitor.

Article 12 (JURISDICTION AND GOVERNING LAW)

  • The Company shall reflect reasonable opinions and complains raised by the Visitor and organize and manage a center to address compensation issues.
  • Any lawsuits arising out of disputes in connection with the business transactions between the Company and the Visitor shall be submitted to the jurisdiction of the Seoul Central District Court.
  • Any lawsuits arising out of disputes in connection with the o business transactions between the Company and the Visitor shall be in accordance with the Korean laws.