Streamlined Credit Card Merchant Registration... Family Card System Institutionalized for Minors

Going forward, it will no longer be necessary for a sales agent to visit a business in person during the process of signing up as a credit card merchant. The scope of credit card use for minors will also be expanded.

The Financial Services Commission announced on April 28 that a revision to the Enforcement Decree of the Specialized Credit Finance Business Act, including these measures, was approved at the Cabinet meeting. The amended decree will be promulgated on May 4 and take effect immediately thereafter.

The key point of this amendment is that it allows sales agents to verify business operations remotely, without face-to-face interaction, when registering credit card merchants. Under the current law, sales agents have been required to confirm business operations through an in-person visit, which has resulted in lengthy registration processes and inconvenience for small business owners. Since November 2020, the Financial Services Commission has allowed limited remote registration through innovative financial services. With this amendment, remote verification is now officially institutionalized. As a result, business operations can now be verified electronically, enabling busy small business owners to register as card merchants and begin their business activities more quickly.

In addition, the scope of business activities for specialized credit finance companies will also be expanded. The amendment adds facility leasing and brokering or arranging of installment products to the list of permitted concurrent businesses. This clarifies the legal basis for such activities, which previously lacked clear legal grounds, and thus more clearly defines the scope of business for these companies.

Measures to enhance the convenience of card usage for minors will also be implemented starting next month. Minors will become eligible to be issued family cards, and the monthly limit for deferred payment transportation check cards, which can be issued to those aged 12 and above, will be raised from 50,000 won to 100,000 won per month. Additionally, the minimum age for issuing check cards without a deferred payment transportation function will be lowered from 12 years old to 7 years old.

An official from the Financial Services Commission stated, "We will continue to identify and implement initiatives to enhance the convenience of card acceptance for small business owners and the convenience of use for financial consumers."

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