Can you cancel something bought on card instalments in Korea? The Installment Transactions Act gives a 7-day right to withdraw from instalment contracts, and a right to refuse remaining instalments when goods are not delivered or defects are not fixed. For credit card instalments, that refusal right applies only when the instalment price is 200,000 won or more, and a withdrawal must be sent in writing to the card company as well as the seller. We read articles 2, 8–10 and 16 of the Act and article 11 of its Decree as written.
1. “Instalments” means 2 months or more, 3 payments or more. The price is split into 3 or more payments over 2 months or more, with the goods supplied before full payment. Card instalments are “indirect instalment contracts” involving the card company (art. 2).
2. Withdraw within 7 days, in writing, to the card company too. Send written withdrawal within 7 days of receiving the contract (or the goods, if later), and for card instalments send it to the card company within the same period (arts. 8 and 9).
3. The refusal right starts at 200,000 won. Where goods are not supplied or the seller fails its warranty duty, you can refuse the remaining instalments — for credit cards only if the instalment price is 200,000 won or more (100,000 won for other indirect instalments) (art. 16, Decree art. 11).
What an instalment contract is — art. 2
| Type | Who you pay in instalments | Example |
|---|---|---|
| Direct | The seller, over 2+ months in 3+ payments | In-store instalment plan |
| Indirect | A credit provider, over 2+ months in 3+ payments | Credit card instalments, instalment finance |
Both “over 2 months or more” and “3 or more payments” must be met, so lump-sum payment or two payments over two months read as outside the Act (our reading). Prepaid instalment contracts, such as funeral plans paid before the service, are treated separately.
Withdrawal — art. 8
- Period — 7 days from receiving the contract; if the goods arrive later, 7 days from receiving them. If no contract or no seller address was given, 7 days from learning the address, and so on. A longer agreed period applies if there is one.
- How — send a written notice of withdrawal within the period (para. 3); it takes effect on the day it is sent (para. 4).
- Disputes — the seller must prove when the contract was issued and the goods supplied (para. 5).
When you cannot withdraw — art. 8(2)
- Goods lost or damaged through your fault (opening packaging to check the contents does not count)
- Using or consuming goods, set by Decree, whose value may fall sharply through use
- Value fallen so far over time that resale is hard
- Opening the packaging of copyable goods
For the second to fourth cases, you can still withdraw if the seller did not clearly mark this on the packaging or offer a trial product (proviso to para. 2, para. 6).
Card instalments: tell the card company too — art. 9
Article 9(1) A consumer who withdraws from an indirect instalment contract with the seller shall send a written notice of withdrawal to the credit provider within the period in article 8(1).
(2) If the consumer does not send that notice, the consumer may not refuse the credit provider’s claim for instalments …
Telling only the seller leaves you unable to refuse the card company’s bill — unless the card company paid the seller within the 7 days, or the seller asked it to stop or cancel the claim (proviso to para. 2).
After withdrawing — art. 10
You return the goods (para. 1), and the seller refunds the deposit and instalments within the set number of business days, with late interest if it delays (para. 2).
The refusal right — art. 16, Decree art. 11
| Grounds to refuse instalments | Threshold for indirect instalments | Amount you can refuse |
|---|---|---|
| Contract not formed or void / cancelled, rescinded or terminated / not supplied by the agreed time / warranty duty not performed / breach defeating the purpose / lawful withdrawal under another law | Instalment price 100,000 won or more; 200,000 won or more for credit cards | The remaining unpaid instalments at the time |
For indirect instalments, you must notify the credit provider of the refusal first (art. 16(2)). It stops what is left to pay rather than refunding what you already paid (para. 3).
Examples — ours
| Situation | Withdrawal (7 days) | Refusal right |
|---|---|---|
| 360,000 won appliance, 6-month card instalments, received 3 days ago | Write to the seller and the card company | Available at 200,000 won+ (if a ground exists) |
| 150,000 won item, 3-month card instalments, repair refused | Not after 7 days | Under 200,000 won, so not against the card company |
| 500,000 won exercise machine, paid in full by card | Not an instalment contract (outside this Act) | Not an instalment contract |
Our examples. Lump-sum and online purchases may fall under other withdrawal rules, such as the e-commerce law; this article covers only the Installment Transactions Act.
Checklist
- ☐ 2+ months and 3+ payments?
- ☐ Within 7 days of receiving the contract or goods?
- ☐ Written notice to both the seller and the card company (keep proof of sending)
- ☐ Refusal right at 200,000 won+ for credit cards — notify the card company first
Questions that remain
Does a text or app message count?
Articles 8(3) and 9(1) say to “send a written notice.” We did not confirm which methods count as written, so use one that leaves a record of sending.
Do I get the instalment fee back?
Article 10 covers the seller’s refund of deposit and instalments. We did not check how card fees are handled.
Sources
- Installment Transactions Act [in force 8 Sep 2026] [Act No. 21906] — original text (checked 1 October 2026). Article 2 (2 months, 3 payments, direct and indirect), article 8 (7 days, writing, date sent, limits, burden of proof), article 9 (writing to the credit provider), article 10 (returns and refunds) and article 16 (refusal grounds, notice, remaining instalments).
- Enforcement Decree of the Act [in force 1 Jul 2026] [Presidential Decree No. 36416] — original text. Article 11 (100,000 won; 200,000 won for credit cards).
- Our own working. The examples in the table are ours.
Where to check further
- Card points — cashing out card points.
- Damaged or lost parcels — parcel damage claims.
Written on 1 October 2026. Articles are from the National Law Information Center; the tables and examples are ours.
