Bank of Korea's Statement on 'Meoji Incident'... "Electronic Financial Transactions Act Should Prioritize Consumer Protection Provisions"

"Go Seung-beom, Nominee for Financial Services Commission Chairman, Participates in Monetary Policy Committee Expressing Position to Prioritize 'Consumer Protection Provisions'

[Asia Economy Reporter Kim Eun-byeol] Regarding the recent Merge Plus incident, the Bank of Korea stated that consumer protection-related provisions should be prioritized in the amendment of the Electronic Financial Transactions Act (EFTA).

On the 18th, the Bank of Korea released a statement saying, "The amendment to the EFTA, excluding matters related to payment and settlement, should be discussed promptly," and added, "Some consumer protection provisions need to be further strengthened."

In response to concerns that the amendment to the EFTA, which includes consumer protection regulations such as mandatory external deposit of prepaid recharge funds, is stalled due to a dispute between the Bank of Korea and the Financial Services Commission over payment and settlement authority, the Bank of Korea insisted that the 'consumer protection provisions' should be discussed first.

The current amendment to the EFTA submitted to the National Assembly's Political Affairs Committee includes measures for consumer protection such as ① mandatory external deposit of prepaid recharge funds, ② establishment of customers' preferential repayment rights, and ③ establishment of a daily total usage limit per customer (10 million KRW).

The Bank of Korea stated, "The amendment mandates that 100% of remittance amounts and 50% of payment amounts be deposited in external financial institutions to protect prepaid recharge funds," and added, "Considering that major countries such as the UK, Germany, and China mandate 100% external deposits of payment amounts, it is necessary to consider strengthening consumer protection measures in the EFTA amendment."

The Bank of Korea further noted, "Some ruling party lawmakers have also argued that the EFTA amendment should be approached in stages," emphasizing the need to prioritize discussions on consumer protection provisions. Go Seung-beom, nominee for Financial Services Commission chairman, also participated in the Monetary Policy Committee in February, expressing a position to 'prioritize consumer protection discussions.'

The Bank of Korea emphasized, "The payment and settlement-related provisions in the EFTA amendment are unrelated to consumer protection," and stated, "We hope that by promptly discussing the EFTA amendment excluding payment and settlement-related provisions in the National Assembly, a consumer protection system for electronic financial transactions will be urgently established."

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