'Error Remittance' Refunds to Be Supported by Deposit Insurance from Next Year

[Asia Economy Reporter Kim Hyo-jin] Starting from the second half of next year, the Korea Deposit Insurance Corporation (KDIC) will support the recovery of 'mistaken remittances'.

The Financial Services Commission and KDIC announced on the 9th that the amendment to the Depositor Protection Act containing this provision has passed the plenary session of the National Assembly.

As non-face-to-face transactions such as internet banking and mobile banking increase, cases of sending money to the wrong person due to incorrect input of bank or account numbers are steadily rising.

Currently, when a mistaken remittance occurs, the sender can contact the recipient through the financial company and request a refund.

If the recipient does not voluntarily return the money at this time, the sender can file a lawsuit, but many give up on recovering the money due to the cost and time burden.

The number of cases where mistaken remittances occurred but the money was not recovered was 82,000 cases (154 billion KRW) last year, an increase of 9,000 cases compared to 73,000 cases (148.1 billion KRW) in 2018.

Even after the KDIC's mistaken remittance refund support system is implemented, the voluntary refund method between the sender and recipient will be maintained as it is now.

However, if the recipient does not return the money despite the sender's request, the sender can apply to KDIC to use the refund support system.

At this time, KDIC will guide the recipient to voluntarily return the mistaken remittance and, if necessary, recover the money using court payment orders, etc.

Once the remittance amount is recovered, KDIC will settle the system operation and guidance costs and send the remaining amount to the sender.

KDIC plans to prepare computer systems and other infrastructure so that the system can be implemented starting July next year.

The Financial Services Commission expects that most mistaken remittances will be recovered within about two months after the system is implemented.

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