'TIMEF' PG Company Payment Cancellation Procedure... Financial Supervisory Service Holds Meeting with PG Companies (Comprehensive)

Naver Financial, Kakao Pay, and 6 Others Receive Payment Cancellation Requests
FSS Emphasizes "PG Companies Have Payment Cancellation Obligations Under Credit Finance Act"
"Refunds Take Time Due to Delays in Delivery Confirmation Procedures"
FSS Holds On-Site Meeting with PG Companies Regarding Payment Cancellations

On the 29th, as the 'Unsettled Sales Payment Incident' of Wemakeprice and Tmon continues, citizens are passing by in front of the Tmon building in Gangnam-gu, Seoul. Photo by Jo Yongjun jun21@

Payment gateway companies (PG companies) that had blocked card payment cancellations due to delayed settlements by e-commerce companies TMON and WEMAKEPRICE are resuming cancellation procedures one after another under pressure from financial authorities. Earlier, the financial authorities interpreted that PG companies' refusal to cancel payments might violate the Specialized Credit Finance Business Act and have been taking measures to prevent the situation from spreading.

According to the financial authorities on the 29th, eight PG companies linked to the TMON and WEMAKEPRICE incidents?Naver Financial, Kakao Pay, NICE Payments, Danal, Toss Payments, NHNKCP, NHN Payco, and Smartro?are currently processing procedures to receive and guide consumers' card payment cancellation requests. The remaining three companies, KG Inicis, Korea Information & Communications, and Hecto Financial, also plan to proceed with the same procedures.

Park Sang-won, Deputy Governor of the Financial Supervisory Service, held an unscheduled briefing that day and explained, "PG companies have an obligation to cancel payments under the Specialized Credit Finance Business Act," adding, "Since they receive commissions from sellers who sell goods or provide services, they bear a certain level of risk cost and thus have responsibility." Article 19 of the Act stipulates that card members' requests for transaction cancellations and refunds must be complied with.

On the 29th, as the 'unsettled payment issue' of Wemakeprice and Tmon continues, affected business operators gathered in the empty office at Wemakeprice headquarters on Yeongdong-daero, Gangnam-gu, Seoul. On the same day, Koo Young-bae, CEO of Qoo10, stated in a press release, "We will minimize consumer damage and prevent the spread of the situation through prompt response." Photo by Jo Yong-jun jun21@

However, refunds are being delayed as the confirmation process for delivery status by TMON and WEMAKEPRICE is currently delayed. Structurally, when customers directly request cancellations to PG companies, the PG companies must verify the delivery status with TMON and WEMAKEPRICE and then transfer the cancellation amount to the card companies, which can then pay the cancellation amount to the customers.

In response, the Financial Supervisory Service has dispatched additional on-site inspection personnel to TMON and WEMAKEPRICE and requested their cooperation to promptly provide the necessary information for card payment cancellations. Deputy Governor Park said, "We will ensure that TMON and WEMAKEPRICE quickly understand the situation so that consumers can receive refunds."

The Financial Supervisory Service held an on-site meeting at Toss Payments in Gangnam that day for PG companies, listening to difficulties related to card payments, as PG companies are concerned they might bear losses if TMON and WEMAKEPRICE fail to secure refund funds. The financial authorities believe that since most PG companies are affiliated with large corporations and have sufficient capital, the risk of immediate expansion is low.

Deputy Governor Park explained, "According to contracts between card companies and PG companies, losses from payment cancellations are to be borne by the PG companies," adding, "We will listen to the specific difficulties and consider solutions."

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