Financial Supervisory Service to Operate TMEF System Improvement TF... Increasing Inspection Personnel

The Financial Supervisory Service (FSS) announced on the 1st that it will operate a task force (TF) consisting of 12 members within the FSS starting from the 2nd to improve the regulatory blind spots revealed in the Tmon and Wemakeprice (Timep) incident.

The Ministry of Economy and Finance, along with related government agencies, is preparing supplementary measures to address the institutional shortcomings identified in the Timep incident.

As consumer payment cancellations related to Tmon and Wemakeprice, payment gateway (PG) companies affiliated with card companies, begin in earnest, refunds are expected to be processed sequentially starting as early as the 1st. On this day, a dedicated counter for victims of the delayed settlement of sales proceeds from Wemakeprice and Tmon has been set up at the Financial Support Center of the Financial Supervisory Service in Yeouido, Seoul. Photo by Jo Yongjun jun21@

In this incident, the shortcomings identified included ▲ the lack of proper supervisory measures despite payment gateway (PG) companies not complying with management guidance ratios ▲ e-commerce platforms selling large quantities of gift certificates, which are not subject to user protection measures, as a temporary cash procurement method ▲ the possibility that e-commerce platforms operating PG services could circumvent PG regulations to manage payment settlements.

The FSS TF plans to derive proposals for institutional improvements at the FSS level and share them with related government agencies.

Additionally, during the on-site inspections of Tmon and Wemakeprice, the FSS confirmed various signs of illegal fund flows and decided to increase the inspection personnel from the current 9 to 12. Accordingly, the FSS will operate a response team of 34 members related to the Timep incident, including 12 for institutional improvements, 5 for status management, and 17 for on-site inspections.

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