Kakao Pay Suspends 'Online Investment-Linked Service'... Pointed Out for Violating Financial Services Act

[Asia Economy Reporter Kiho Sung] Kakao Pay is set to suspend its online linked investment service. This follows a notification from financial authorities expressing concerns that the related service may violate the Financial Consumer Protection Act (FCPA). Kakao Pay stated that it aims to minimize inconvenience to existing investors.

According to financial sources on the 22nd, the Financial Services Commission recently issued an official interpretation to Kakao Pay, indicating that the online linked investment service provided to online investment companies may violate the FCPA, and subsequently notified the company of the results.

Kakao Pay has been operating an online linked investment service within its app's investment menu. The service introduces investment products from partnered online investment companies, and users can invest in these products by clicking the 'Invest' button.

The financial authorities judged this type of service to be closer to brokerage rather than advertising. Furthermore, since Kakao Pay is not currently registered as a financial product sales agent or broker, it was determined that there is a risk of violating the FCPA. Under the FCPA, registration as a financial product sales agent or broker is required to conduct investment brokerage.

Kakao Pay has expressed its acceptance of the financial authorities' policy. A Kakao Pay representative stated, "The related service is scheduled to be terminated," and added, "We will strive to minimize inconvenience to existing investors."

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