[Click eStock] "HectoFinancial, Growing Interest Due to TimePay and Electronic Financial Transactions Act Amendments"

On the 12th, KB Securities forecasted that interest in Hecto Financial will expand domestically due to the revision of the Enforcement Decree of the Electronic Financial Transactions Act and issues with Tmon and Wemakeprice, and internationally due to the full-scale launch of new businesses.

Kim Hyun-gyeom, a researcher at KB Securities, stated in a report on the same day, “Following the legislative notice of the partial amendment to the ‘Enforcement Decree of the Electronic Financial Transactions Act’ on May 24, the amendment is scheduled to take effect on September 15.” He explained, “The purpose of this enforcement decree is to prevent consumer damage caused by indiscriminate issuance of prepaid gift certificates or prepaid point charging by operators with low business capabilities, and to impose higher management obligations on existing prepaid operators.”

The main contents of the amendment include ▲strengthening registration requirements for prepaid electronic companies ▲deleting industry standards for prepaid electronic payment means and mandating separate management of prepaid charges ▲strengthening exemption criteria for prepaid business registration. Accordingly, companies operating prepaid funds in the form of mileage and points, such as game companies, distribution industries like marts, delivery agencies, and F&B, are expected to be subject to the amended Electronic Financial Transactions Act.

Researcher Kim Hyun-gyeom predicted, “Companies that will face difficulties responding to the amended Electronic Financial Transactions Act are likely to entrust prepaid deposit payment, management, and merchant settlement integrated services to electronic financial business operators or prepaid operators (such as Hecto Financial), which will become a new business model.”

In particular, the Tmon issue is analyzed as an accident that could not have occurred if the revised Electronic Financial Transactions Act had been in effect.

Researcher Kim said, “The Tmon issue stemmed from the misuse of sales settlement funds and prepaid charges, and various measures to prevent this will be introduced in the future.” He anticipated, “The core will be the prohibition of platform companies from concurrently operating settlement PGs, strengthening the financial soundness and supervision of PG companies, and shortening the settlement cycle.”

He added, “Hecto Financial, as a PG settlement operator, has newly launched the ‘PG Escrow Settlement Service.’” He forecasted, “This service can meet the demand for settlement PGs from platform companies arising from the recent Tmon issue, and will firmly establish itself as a new business model through first-mover advantage.”

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