[Corporate Legal Affairs / M&A]Legal Firm Sayoo's Response to Removing Black Sellers (Resellers)

Legal Firm Sayoo is effectively removing black sellers, who disrupt fair market order and tarnish manufacturers' brand image by arbitrarily purchasing and reselling their products without any authority. Through our legal responses outlined below, we have successfully removed over 90% of these entities in the initial legal actions. For those "hardcore black sellers" who remain after the initial response, we implement a secondary legal strategy attacking individual weaknesses to remove them from the market and secure commitments to prevent future recurrence.

<1st Legal Response>

1. Negotiations with Legal Teams of Each Online Platform to Cease Black Seller Operations

[1st Negotiation]

• Issuance of initial notices to the legal teams of nine online platforms including Naver, Coupang, Tmon, Interpark, etc.

[2nd Negotiation]

• Issuance of secondary notices urging swift action, citing relevant legal precedents and provisions concerning the legal responsibility of online platform operators, for platforms that have not sanctioned black sellers despite the initial notices.
• Continued discussions with the legal teams of each of the nine online platforms regarding the specifics of sanctions.

[3rd Negotiation]

• Issuance of third notices to the legal teams regarding remaining sellers who persist in selling blacklisted items.
• Providing sanitized references such as disposition reports from investigative agencies handled by our office as supporting materials.
• Final notices and strong demands for swift action to the legal teams of respective platforms.
• Continued discussions and closure of matters regarding the final sanctions with the legal teams of each of the nine online platforms.

<2nd Legal Response>

• Gathering information on violations of the Unfair Competition Prevention Act, Copyright Act, Trademark Act, Personal Information Protection Act, and various other laws applicable to the products sold by each black seller.
  
•  Investigating tax evasion, the use of undisclosed accounts, and other matters related to each black seller's tax status.
• Conducting investigations into violations of the Act on Fair Labeling and Advertising and the Health Functional Food Act by each black seller.
• Examining whether there are any violations of terms of use of other companies regarding the sale of products from other companies by each black seller.
• Conducting a comprehensive investigation and data collection on other illegal and unlawful activities of each black seller.
• Initiating criminal complaints, reports to the National Tax Service, reports to relevant authorities, and claims for damages based on illegal and unlawful acts by each black seller. Seeking a cease-and-desist agreement and measures to prevent future recurrence regarding the sale of our client's self-produced products using the trademark of the client from each seller.
• Initiating negotiations with each black seller for the execution of the cease-and-desist agreement.