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KAIT Korea Association for ICT Promotion Korea Association for ICT Promotion

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  • Key Programs
  • Enhancing User Rights and Interests

About the Used Device Safe Transaction Business Certification System

A system operated pursuant to the Telecommunications Business Act to create a safe environment for users to trade used mobile devices. It aims to protect telecommunications service users’ rights and promote industry activation by preventing unfair damage to used device users and establishing post-incident relief measures.

Program Objective

To improve user trust and promote the used device market by certifying used device distributors that meet certification standards, including user protection requirements, as Safe Transaction Businesses.

Program Details

01
Certification of Used Device Safe Transaction Businesses
  • Eligible Applicants
    • Online and offline businesses that purchase or sell used mobile devices from individuals
  • Certification Validity Period
    • 5 years
  • Certification Application and Certificate Issuance Procedure
Flowchart of the certification application and certificate issuance process for used device safe transaction operators. A used device distribution business submits a certification application (member registration) through the Used Device Safe Transaction integrated website, after which a review is conducted. KAIT carries out a document review followed by an on-site inspection, then processes the certification approval. If supplementation is required, a request for additional materials is issued at either the document review or on-site inspection stage, and a re-evaluation is conducted. Once certification is complete, a certificate is issued, posted, and delivered to the used device distribution business. The Used Device Safe Transaction operator certification system handles application submission, progress inquiry, application cancellation, and certificate issuance.

* Application Method: Online application (apply after registering as a business member)

  • (Document Review) Agreement to required consent items and completion of the application form.
(Document Review) Agreement to required consent items and completion of the application form.
Category Details

Required Consent Items

• Consent to on-site inspection of the business premises and collection/use of required information

• Compliance with relevant laws and regulations and requirements related to the Used Device Safe Transaction Business Certification System

• Used Device Safe Transaction Business Certification Application (business name, contact person, scope of business operations, etc.)

Application Form Completion

• Applicant type (individual/corporation), company name, business name, representative name, business registration number, inspection contact person, contact details of the inspection contact person, business address and operating address, consent to joint use of business information, etc.

Verification Documents

• Business Registration Certificate (issued pursuant to Article 8 of the Resident Registration Act)

• Corporate Register Certificate (for corporate applicants)

• Business operators may allow the certification authority to verify the business registration certificate or corporate register certificate (for corporate applicants) through prior consent to joint use of administrative information

• If the applicant does not consent to joint use of administrative information, the applicant must attach the relevant documents when submitting the certification application

  • (On-site Inspection) nce information, the inspection is conducted according to the inspection criteria
(On-site Inspection) Guidance Information
Category Guidance Information

General Guidance

• Mandatory notification and update to the entrusted organization if certification information such as the business address changes

• Certification may be revoked if non-compliance with certification standards is detected

• After certification, periodic or ad-hoc on-site inspections will be conducted for follow-up management; certification may be revoked in case of non-cooperation

(On-site Inspection) Certification Criteria, Inspection Items
Category Certification Criteria – Inspection Items

Applicable

Applicable Common Requirements

• Business address and representative

• Type of business operation (online/offline)

Purchasing Businesses

• Establish procedures for factory reset or data deletion through a personal data deletion program for used mobile devices (hereinafter referred to as "used devices")

• Issue a personal data deletion confirmation certificate to the seller of the used device

• Establish grading standards for used devices to be purchased by stage

• Provide detailed explanations of each grading level on the website or at the business premises so that anyone can easily view them

• Provide purchase price information for used devices by manufacturer and model based on grading levels

• Provide detailed explanations of the grading results and purchase price for used devices being purchased

Sales Businesses

• Establish grading standards for the condition of used devices to be sold

• Provide detailed explanations of each grading level on the website or at the business premises so that anyone can easily view them

• Provide detailed explanations to the buyer regarding the reason for the assigned grade and any additional components (such as chargers)

• Issue a performance confirmation certificate or warranty (including warranty period) indicating whether the device has been factory reset

• Establish measures such as returns or refunds within a specified period if problems occur after sale or if discrepancies are found with the information provided at the time of sale

• Provide information on whether repairs are possible through the manufacturer's official service center and establish return/refund measures if repairs are not possible despite prior guidance

• Verify whether the used device has any restrictions on domestic telecommunications service use

• Verify whether the used device has been reported lost

• Prepare and retain sales records of used devices for at least one year

  • Certification Review Completion
    • If the applicant is determined to meet the certification requirements after the document review and on-site inspection, a certification certificate is issued.
02
Post-Certification Management

Post-certification inspections may be conducted on certified used device distributors pursuant to Article 32-16(4) of the Telecommunications Business Act (Promotion of the Used Mobile Device Market). Under Article 32-16(5) of the same Act, certification may be revoked if the business is found to no longer comply with the certification standards.

03
Certification Revocation
Certification Revocation
Category Criteria for Certification Revocation

Refusal of Inspection

• Refusing inspection without a valid reason

Fraudulent Certification

• Obtaining certification through false statements or fraudulent means

Failure to Meet Certification Standards

• Conducting business operations that no longer comply with the certification standards

Business Suspension or Closure

• Business suspension or closure confirmed through the National Tax Service business status inquiry

Information Discrepancy

• Discrepancies identified during inspection between the certified information and actual operations (e.g., operating a different sales model from the one stated in the certification application)

About the Used Device Transaction Verification Service

To enhance trust in used device transactions, the service operates alongside the Safe Transaction Business Certification System, which certifies used device distributors through a review process. It also provides a Used Device Transaction Verification Service to prevent unfair damage to users, protect their rights, and guarantee their right to use telecommunications services.

Program Objective

To prevent ownership disputes that may arise after used device transactions and to ensure that users can prove legitimate ownership if issues occur, thereby supporting damage relief and guaranteeing the right to use telecommunications services.

Eligible Applicants

Sellers or buyers who wish to obtain a Transaction Verification Certificate after completing a used device transaction.

Program Details

01
Used Device Transaction Verification Service
  • Eligible Applicants
    • Sellers or buyers who wish to obtain a Transaction Verification Certificate after completing a used device transaction
  • Application Procedure
Guide to the application procedure for issuing a used device transaction confirmation certificate. The process consists of seven steps. Step 1: Member registration (individual membership). Step 2: Application for issuance of a transaction confirmation certificate. Step 3: Lost or stolen status inquiry for the traded device. Step 4: Transaction information registration and electronic signature (by the applicant). Step 5: Verification, consent, and electronic signature by the counterparty. Step 6: Fee payment and electronic signature (by the applicant). Step 7: Issuance of the used device transaction confirmation certificate.
  • Application and Issuance Procedure for the Transaction Verification Certificate
Flowchart of used device transaction confirmation certificate utilization. After a used device transaction, the seller or buyer requests issuance of a transaction confirmation certificate from KAIT, and KAIT issues the used device transaction confirmation certificate. If a malicious lost device report is subsequently filed, the carrier (SK Telecom, KT, or LG U+) lifts the lost status based on the certificate, and the buyer may request damage relief and resume normal use of the device.
  • Application for Transaction Verification Service Issuance
    • After completing a used device transaction, sellers or buyers who wish to obtain a Used Device Transaction Verification Certificate may apply through the Used Device Safe Transaction Integrated Website.
  • Request to Remove Device Usage Restriction
    • After the Transaction Verification Certificate is issued, if the device becomes blocked from use due to an improper lost or stolen report, the user may request removal of the restriction using the certificate.
  • Devices Not Eligible for Transaction Verification Service Issuance or for Removal of Usage Restriction
Devices Not Eligible for Transaction Verification Service Issuance or for Removal of Usage Restriction
Category Description

Devices Used for Criminal Activity

Telecommunications devices notified to the specialized IMEI-sharing institution designated by the Minister of Science and ICT by the head of an inspection or investigative authority pursuant to Article 60-2(1)(2) of the Telecommunications Business Act

Devices Not Eligible for Distribution

Telecommunications devices registered as “Not Eligible for Distribution” by a telecommunications service provider

  • Procedure for Removing Device Usage Restriction Using the Transaction Verification Service
Flowchart of the usage block removal service. When the certificate holder requests usage block removal from the specialized institution (KAIT), the institution verifies whether the transaction confirmation certificate was issued and whether the device is actually registered as lost. Following verification, the specialized institution requests usage block removal from the telecommunications operator, which either lifts the block or, if removal is not possible, notifies the specialized institution of the reason. The specialized institution then informs the certificate holder of the usage block removal result.