1.6 Billion KRW Mistakenly Transferred by 1,299 People Recovered Through the 'Mistaken Remittance Return Support System'

Total Return Support Applications 5,281 Cases, Approximately 7.7 Billion KRW
Support Target Increased from 17.2% to 47.6% Since Implementation Start

Mistaken Remittance Refund Support Return Performance. Photo by Korea Deposit Insurance Corporation

[Asia Economy Reporter Song Seung-seop] Last year, 1,299 people recovered 1.6 billion KRW of mistakenly transferred money through the Deposit Insurance Corporation's ‘Mistaken Remittance Return Support System’.

According to the Deposit Insurance Corporation on the 12th, by the end of last year, a total of 5,281 return support applications were received from mistaken remitters, amounting to 7.7 billion KRW. Among these, 2,227 cases (3.1 billion KRW) were eligible for support, and 1,299 cases (1.6 billion KRW) were returned to their original owners. The remaining 928 cases are currently undergoing the return support process.

The Mistaken Remittance Return Support System is a system where, in the event of a mistaken remittance, the Deposit Insurance Corporation retrieves the funds on behalf of the remitter upon their application. It was implemented on July 6 last year. It can be used when a return request has been made to the recipient through financial institutions but the funds have not been returned.

The proportion of applicants who were approved for support after screening steadily increased from 17.2% at the beginning of the system to 47.6% by the end of last year. The system cannot be used if the remitter withdraws the application or if the account is subject to various legal restrictions such as criminal use accounts or seizure.

By amount, cases between 100,000 KRW and less than 500,000 KRW were the most common with 1,904 cases, accounting for 36.1% of the total. Cases under 3 million KRW accounted for 84% in total.

Most returns were voluntary returns (1,277 cases). This means the Deposit Insurance Corporation directly contacted the recipient and guided the return to recover the mistaken remittance amount. If the recipient did not return the funds after being notified, a payment order procedure through the court was pursued in 22 cases.

The average payout rate upon mistaken remittance return was 96.1%, and the average time from application to return was 41 days.

The Deposit Insurance Corporation plans to reduce misuse applications that claim fraud damages as mistaken remittances to expand the beneficiaries of the system. It will also strengthen pre-screening functions through the Police Agency’s cyber fraud inquiry and fraud information inquiry platforms.

Additionally, to enhance user convenience, it is promoting the development of a mobile application system. It is also considering diversifying authentication methods to make the online application process easier for mistaken remitters. For foreigners unfamiliar with legal terminology, it is reviewing plans to provide related documents translated into major foreign languages.

Cooperation with financial companies will also be strengthened. It plans to conduct explanatory sessions and guidance training for financial institution employees nationwide and produce and distribute cooperation guidelines to reduce the period for receiving recipient information (currently averaging 15 days).

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