[Judges Who Judge with Sincerity] The Wondrous and Beautiful World of Crowdfunding
The Wadiz Service Operations Team takes a close look at the projects they’ve worked on.
Wadiz Pre-order was newly launched in January 2023. It’s been six months since then.
Even if you useWadizfrequently, it can be hard to know the exact difference between “funding” and “pre-order.” If that’s the case, please read the article below!
👉 What is a “Pre-order”? (Click)
While funding and pre-order projects may seem similar in terms of how you obtain a product or service, different policies apply. Funding typically involves newly launched products, but pre-orders can be run as projects even for existing products—as long as they offer some kind of benefit!
That might raise a question for you.
“I heard this is the first product of its kind to be publicly funded in Korea—can I really trust it?” “What makes the screening process different?”
Today, I’d like to share the answer to that question and some useful tips on the review process.
What are the differences between funding, pre-orders, and the review stage?
Let's take the food category as an example.
For "pre-order" projects, you must have the necessary documents for mail-order sales. This is because pre-orders—which can only be conducted by sole proprietors or corporations—are subject to the Electronic Commerce Act.
The required documents for “funding” vary slightly depending on the type of production. For example, if you are a maker who directly manufactures processed foods, you must submit a Food Manufacturing Business Registration Certificate or an On-Site Sales Manufacturing Business Registration Certificate, as well as a Product Manufacturing Report, Wadiz.
On the other hand, if you’re using a contract manufacturing model rather than manufacturing the products yourself, you’ll need a Business Registration Certificate or Notification Certificate for Specialized Distribution. All of these are legally required documents.
Source: Pixabay
TheWadiz Team carefully reviews the qualifications and documents that makers must provide in order to launch a project.
(You might just go through the screening process once to launch aWadiz project—and experience the magic of having most of the documents required for online distribution automatically prepared for you?)
Understanding the documentation required for running and selling these projects will be useful not only for makers but also for backers. This is to help you make smart purchasing decisions. This is especially true now that there are more ways for individuals to conduct transactions than ever before, from Wadiz personal crowdfunding to secondhand sales.
Selling red ginseng or supplements you received as gifts without thinking is illegal!
For example, individuals are not allowed to sell the following types of products on secondhand marketplaces. If you casually list items such as red ginseng or dietary supplements that you received as gifts on a secondhand site, you may face restrictions on your account.
Unregistered manufacturing/sales businesses and uncertified, unlicensed goods and services
Health functional foods
Alcoholic beverages (including traditional liquor), tobacco, and tobacco substitutes, etc.
Source: Pixabay
Under the Food Sanitation Act, a license must be obtained from the Minister of Food and Drug Safety or an authorized official to manufacture, process, or sell food or food additives. Therefore, food products processed by individuals who have not obtained a manufacturing license in accordance with the Food Sanitation Act may not be sold or advertised.
Only businesses registered as health functional food sellers are permitted to advertise such products, and prior review is required for any labeling or advertising that claims specific health benefits. In reality, it is difficult for individuals who are not business owners to meet these requirements.
Please note that selling or distributing health functional foods without a license (unless you are a licensed business operator) is illegal!
Key Requirements, Review
If you plan to run a crowdfunding, pre-order, or store project for health functional foods Wadiz, you must submit certain documents—such as a business registration certificate for general sales of health functional foods, a business registration certificate for specialized distribution of health functional foods, and a certificate of prior advertising review—though the specific requirements may vary slightly depending on the production type.
Health functional foods refer to foods containing specific ingredients with "functional properties" that can benefit the human body. Since these functional properties must be verified by the Ministry of Food and Drug Safety, a more thorough review is required during the evaluation process. Without the necessary documents, it will be difficult to proceed with the project.
Source: Pixabay
The Service Operations Team carefully reviewsWadiz . The review process is crucial.
We’ll be back soon with more helpful tips to promote a healthy crowdfunding culture and responsible consumption among creators and supporters!
