'OO Pay' Limit Increased to 5 Million Won... Strengthening Financial Institution Responsibility for Electronic Financial Fraud

Son Byung-du, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the 3rd plenary meeting of the Regulatory Proof Committee held on the 12th at the Financial Services Commission in the Government Seoul Office Building, Jongno-gu, Seoul. (Provided by the Financial Services Commission)

[Asia Economy Reporter Kim Hyo-jin] The responsibility of financial companies for electronic financial accidents will be strengthened. The usage limit of registered prepaid electronic payment methods, represented by 'OO Pay,' will be raised to a maximum of 5 million KRW, and the entry of patent firms and accounting firms into the technology credit evaluation sector will be permitted.

The Financial Services Commission (FSC) announced on the 14th that it held the 3rd Regulatory Verification Committee plenary meeting on the 12th and reviewed 142 regulations related to the Electronic Financial Transactions Act and the Credit Information Act, deciding to improve 26 of them.

The FSC plans to expand the scope of electronic financial accidents for which financial companies are responsible. Current regulations impose liability for damages to users only for specific incidents such as access medium forgery or alteration.

As electronic financial transactions become more complex and diversified, the FSC's policy is to establish a system where financial companies primarily take responsibility and manage by expanding the scope of electronic financial accidents.

Along with this, to enhance the convenience of electronic financial transaction users, the FSC plans to increase the recharge limit of prepaid electronic payment methods, currently at 2 million KRW, to between 3 million and 5 million KRW.

Furthermore, new businesses such as MyPayment and comprehensive payment settlement services will be introduced to foster financial platforms capable of various services based on simple payments, remittances, and account-based transactions.

MyPayment refers to a business that issues payment instructions in front of the recipient to financial companies holding the user's funds based on the user's instructions, while comprehensive payment settlement business refers to a platform business that operates all electronic financial businesses under a single license, providing various financial technology (fintech) services in a one-stop manner.

Measures will also be promoted to rationalize soundness regulations such as management guidance standards and strengthen behavioral regulations for user protection to ensure the safety of the electronic financial industry.

The FSC plans to submit a bill to amend the Electronic Financial Transactions Act related to these improvement tasks to the National Assembly in the third quarter of this year.

At this meeting, the FSC also discussed ways to ease entry barriers to the technology credit evaluation industry.

Accordingly, the FSC will allow patent firms and accounting firms with expertise in technology value evaluation to enter as technology credit evaluators and induce competition and innovation in the technology credit evaluation industry based on this.

Current regulations allow entry into the credit information business only for corporations in which financial companies hold 50% or more of the shares.

The current regulation, which imposes relaxed controlling shareholder qualification requirements on major shareholders of credit information companies compared to financial companies, will be strengthened to a level equivalent to major shareholders of financial companies.

Accordingly, major shareholders of credit information companies cannot be major shareholders of financial companies that have been designated as insolvent financial institutions or have received institutional warnings within the past year.

The FSC also plans to allow credit information companies to perform tasks such as technology evaluation agency work, prior technology investigation, and analysis and evaluation work.

The FSC plans to require newly emerging personal credit information management companies after August to compulsorily subscribe to liability insurance for damages in preparation for personal credit information leaks and misuse incidents.

To protect personal credit information subjects, the current regulation requiring deletion of disadvantageous credit information within five years will be improved to exempt the obligation to delete within five years in cases of providing creditor change inquiry systems, thereby strengthening the protection of debtors' rights.

The FSC plans to complete the amendment procedures for subordinate laws for these improvements by August and to enable the implementation of these improvement tasks starting from August.

This content was produced with the assistance of AI translation services.