Over 2,000 Remittances Returned Due to Errors Since Mid-Last Year

Totaling 2.5 Billion KRW... Averaging 280 Cases Recovered Monthly
84% of Applications Are Under 3 Million KRW
Most Recipients Voluntarily Return Funds

[Asia Economy Reporter Minwoo Lee] The Korea Deposit Insurance Corporation (KDIC) has returned approximately 2,000 cases (worth about 2.5 billion KRW) of mistakenly transferred funds from July last year to the end of last month.

KDIC announced the status of the 'Mistaken Transfer Return Support System,' which has been in effect since July 6 last year. This system allows KDIC to return money that was mistakenly transferred on behalf of the sender. According to KDIC, a total of 7,064 cases (10.4 billion KRW) were applied for by the end of last month. Among these, 3,116 cases (4.3 billion KRW) were eligible for support, and a total of 1,966 cases (2.5 billion KRW) were returned to the senders. A total of 3,315 cases were judged as not eligible for support, and the remaining 633 cases are currently under review for eligibility.

Excluding the month of implementation, the average monthly number of applications was 940 cases (approximately 1.36 billion KRW). The proportion of applications approved for support after review increased from 17.2% in the first month of implementation to 48.5% last month.

The reasons for exclusion from support included ▲accounts used for crimes such as voice phishing (23.5%) ▲withdrawal of application by the sender (20.8%) ▲accounts under legal restrictions such as seizure (11.1%) ▲failure of financial institutions to carry out their own return procedures (10.2%), in that order.

The amount of mistaken transfers between 100,000 KRW and less than 500,000 KRW accounted for 2,569 cases, representing 36.4% of the total. Most cases, about 84%, were under 3 million KRW.

Excluding July last year when the system was implemented, the average monthly number of returns was 280 cases (approximately 350 million KRW). As of the end of last month, 'voluntary returns,' where KDIC recovered funds from the mistaken transfer recipients and returned them, accounted for the largest number at 1,909 cases. There were 57 cases where KDIC had to recover funds through court payment order procedures after recipients did not respond to KDIC's guidance.

Through this process, KDIC recovered about 2.46 billion KRW. After deducting various costs such as postage, SMS notification fees, court order-related stamp duties, and delivery fees, about 2.37 billion KRW was returned. Accordingly, the average payment rate, which is the ratio of the actual amount returned to the mistaken transfer amount, was calculated at 96.0%. The average time from application to receiving the returned money was 43 days.

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