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Collaboration in Consumer Redress MOU Signing Ceremony Hong Kong Consumer Council and Korea Consumer Agency

President Han Kyeon-pyo, distinguished guests from the Republic of Korea, and media friends,

On behalf of the Hong Kong Consumer Council, I welcome members of the Korea Consumer Agency and thank them for making the trip to Hong Kong for this important MOU signing ceremony. The signing of the MOU marks a milestone in strengthening the protection of consumer rights and interests in both places, especially in regard to cross-border consumer disputes.

Over the years, with rapid exchange in culture between Hong Kong and the Republic of Korea, a “Korean Wave” has been generated in Hong Kong.  Films and television programmes are popular among Hong Kong audiences. Korean fashion - clothing and skincare products are also a favorite choice among many young women, who frequently purchase those products from Korean online shops if the items are not sold in Hong Kong.  When it comes to travel, the number of visitors from Hong Kong to the Republic of Korea rose from 520,000 in 2015 to 650,000 in 2016, a 24% increase.  Hong Kong is also a popular travel destination for Koreans, with nearly 1.4 million tourists from the Republic of Korea visiting Hong Kong last year.  That was an increase of 12% over the 1.24 million during the preceding year.  The upsurge in visitors not only reflects increased engagement between the peoples of the two places, but also increased consumer disputes, arising from travel or online shopping.

Probably because of their tight itinerary, language barriers or other factors, many consumers hardly make immediate complaints.  Until they return home, many have no choice but to acquiesce.  Even if consumers wanted to pursue their claims, it would be very difficult.  Also, online shopping between the two places has mushroomed, but differences in languages, cultures, legislation and business practices are also primary obstacles, preventing online consumers from achieving satisfactory settlements when there are cross-border disputes.

As a step toward resolution, the Hong Kong Consumer Council and the Korea Consumer Agency have signed today’s MOU to establish a new mechanism for referral of consumer disputes.  In that way, consumers in the two places may seek redress through their local consumer bodies, even after returning home.  The organisations in both places would assist in reconciliation in disputes between consumers and traders, under the terms of the new mechanism.  Apart from consumer disputes involving visitors in either place, the new mechanism also applies to complaints concerning online shopping.  In other words, both online and offline consumer activities are well protected by this mechanism, addressing the needs of consumers in both places.

In accordance with the MOU, visitors experiencing consumer disputes will be entitled to file their complaints to their local consumer bodies for redress, after returning home.  Upon receipt of a complaint, the receiving agency will refer the case, in English, to the cooperating agency, to assist with consumer disputes.  The resolution of the matter will be communicated to the referring agency, then, in turn, to the complainant.  The referral process may seem complicated but it effectively addresses multiple problems arising from the language barrier and issues raised after the complainant has returned home, and jurisdictional constraints that otherwise would render the respective consumer agencies unable to help.

This is the very first time the Hong Kong Consumer Council has signed a MOU with a consumer protection organisation abroad, a most important step forward for safeguarding consumer rights and interests in disputes.

The Hong Kong Consumer Council and the Korea Consumer Agency expect that with the expansion of online purchasing, coupled with rising numbers of tourists between Hong Kong and the Republic of Korea, there will be new challenges ahead.  This MOU equips both signing parties in providing safeguard for consumers so that they may shop abroad with a peace of mind.

Thank you.