Press Releases - Financial Services Commission

Press Releases

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Dec 07, 2021

Revised Enforcement Decree of FSCMA and Subordinate Rules to Take Effect from December 9

The government approved the revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act and its subordinate rules at a cabinet meeting held on December 7. The revisions prescribe specific details mandated by the revised FSCMA and provide legal basis for enforcement. The revisions will take effect from December 9, 2021. Key Details a) When an already listed securities firm wishes to add a business unit that is considered to be in an equivalent business area, the authorization process will be simplified and streamlined by requiring the company to register the additional unit instead of having to go through an approval process by submitting a business plan and qualifications of large shareholders. b) When a Korean branch of a foreign-based securities firm wishes to change its organizational status from a branch office to a subsidiaryor vice versathe approval process will be simplified by granting an exemption from an assessment of its business plan, requirements for human resources and electronic and other physical facilities and qualifications of large shareholders. c) When a securities firm becomes insolvent, investor deposits will be paid back to its customers by a deposit holding institution instead of the insolvent securities firm in order to guarantee a speedy and safe refund process. d) The severity of the fine for violating the large shareholding reporting rule (the 5% rule)will be increased to more effectively induce compliance. e) Companies quarterly disclosure burdens will be eased by requiring them to list only key material information in their quarterly reports while other types of information can be updated only when changes have occurred. f) When licensing procedure of a financial investment business has been suspended due to a criminal investigation of its owner or large shareholder, the authorities will review the viability of resuming the licensing process every six months or when considered appropriate even before
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Dec 07, 2021

Support for Vulnerable Debtors Available for Six More Months until June 2022

The FSC along with all financial sectors and relevant institutions agreed to extend the period of support available for vulnerable debtors who have been hit by the COVID-19 for six more months until June 30, 2022. These support measures for individual (non-corporate) debtors were first introduced on April 29, 2020 to help vulnerable debtors whose income levels fell due to the COVID-19 pandemic. The period of their availability has been extended twice thereafter to continue to provide support until the end of this year. As unemployment and job losses continue to weigh down these debtors amid a protracted pandemic situation, the authorities decided to extend the period of these supports for six more months until June 30, 2022. As such, pre-workout programs offered by individual lending institutions and the individual debt purchase program administered by the Korea Asset Management Corporation (KAMCO) will be available for six more months. Individual debt adjustment programs offered by the Credit Counseling Recovery Service (CCRS) is available on a regular basis. The FSC will work to provide a sufficient level of assistance to vulnerable sectors while preparing for an orderly exit from the pandemic-era policy. * Please refer to the attached PDF for details.
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Dec 06, 2021

FSC Chairman Discusses Key Policy Tasks for 2022 in Virtual Press Briefing

FSC Chairman Koh Seungbeom held an end-of-year press briefing in a virtual format on December 3 to discuss policy outcomes for this year and explain key policy tasks for 2022. At the beginning of his keynote address, Chairman Koh touched upon some of the important policy initiatives and their outcomes for 2021, including policies on household debt management, COVID-19 financial support for small merchants and SMEs, virtual asset service providers, digital transformation in the financial sector and financial consumer protection. Chairman Koh then discussed key policy tasks for 2022 as summarized below. Chairmans Remarks on 2022 Policy Focus The global economy is expected to maintain its recovery momentum in 2022 but market uncertainties are growing due to asset price volatility, rising prices and persistent concerns about inflation. Domestic situations are also concerning. Financial imbalances and potential risks need to be managed while the provision of pandemic-related supports should be maintained. Excessive debt levels should be reduced while assistance for the lower income and vulnerable groups should continue to be available. Ensuring stability in the financial system and pursuing inclusive financial policies may be contradictory in nature but seeking a proper balance between the two is the task of the financial authority. In this regard, the FSC will focus on the following three policy areas. First, the authorities will continue to work on tackling financial imbalances. Unlike some of the other major economies where debt levels have increased much more in the public sector, Korea has seen debt levels grow much faster in the household and corporate sectors. The household debt management plan for 2022 will be focused on managing the total amount of debt extended with a longer term plan for gradually introducing a more systematic management plan. With the application of the individual borrower-level debt service ratios (DSRs), stable management of household debt
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Nov 30, 2021

API-based Financial MyData Service to be Piloted from December

The FSC announced that financial MyData service will be pilot launched from 16:00 (Korean Standard Time) on December 1, 2021 as the 17 service providers including banks, financial investment businesses, card companies, a mutual finance company and fintechsthat have successfully completed a closed beta testing will begin to offer MyData services prior to the full launch on January 1, 2022. The financial authorities have been working closely with the financial sector and fintechs to improve the way consumers manage and access their personal financial data in a more convenient and safe way while guaranteeing the right to data privacy through MyData services. The efforts made by the authorities have thus far led to (a) an expanded scope of the types of data made available for MyData services, (b) a simplified personal authentication identity verification process, (c) the provision of stronger consumer safeguards and (d) the creation of an environment to promote fair competition between service providers. From December 1, 2021, the API-based financial MyData service will be piloted from 17 financial institutions and fintechs at first with some 20 other service providers including big techs and fintechs joining by the end of this year and 16 other MyData service providers including insurance companies and a credit bureau expected to join in the first half of 2022. The ten other prospective service providers that have gained a preliminary approval are expected to join in the second half of 2022 after their final licensing procedure. The financial authorities along with the MyData service providers and relevant institutions will closely monitor issues that need to be improved upon during the pilot period and ensure a seamless preparation for the full launch on January 1, 2022. Any update on the list of service providers and further information can be found at www.mydatacenter.or.kr. * Please refer to the attached PDF for details.
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Nov 29, 2021

FSC and BOK Launch Mobile App Providing Detailed Information on Bank Branches and ATM Locations

The FSC and the Bank of Korea announced that a new mobile application (www.accountinfo.or.kr) providing detailed information about bank branches and ATM locations will go into service from November 29. The new mobile application integrates data and provides regularly updated branch information about banks, deposit taking nonbanks, such as Korea Post, savings banks and mutual finance companies, as well as securities firms. The information provided include operating hours, contact information, list of services available at a branch, service fees, language services offered and the availability of assistance for persons with disabilities. The mobile application also offers an ATM locator service which will help consumers find an ATM near them anywhere in the country and find out about the list of services available at a particular ATM and information on fees. With an automatic daily update of the database, information provided on the mobile application will be kept up to date with a high degree of accuracy. The establishment of an integrated database on branch information will also help the financial sector with a more effective management and operation of their branch offices, ATMs, etc. The authorities expect to see an increase in accessibility to financial services and much improvements in consumer convenience. The FSC and the Bank of Korea will continue to work with the financial sector in helping to strengthen financial inclusion. * Please refer to the attached PDF for details.
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Nov 29, 2021

FSC to Promote Tech Financing to Support Promising and Innovative SMEs

The FSC announced the tech financing performance of banks for the first half of 2021 and unveiled a plan for making improvements to the current tech financing system to continue to promote lending to innovative SMEs. Background Banks tech financing for innovative SMEs that have high potential for future growth has expanded significantly since it was first introduced in January 2014. At the end of September 2021, the balance of loans extended to businesses for tech financing stood at KRW310.9 trillion, which showed on average an annual increase of more than KRW40 trillion from 2018.Compared to SMEs in other sectors, tech financing recipients have shown better performance in terms of their expandability and profitability. In this regard, the financial authorities and banks have been regularly monitoring delinquency rates and working to ensure stable management of the soundness of tech financing. In addition, tech financing has led innovative changes in the banking sector by facilitating lending based on intellectual property (IP) and movable assets and making tech-based borrowing more accessible to the relatively young companies. Tech Financing Performance The financial authorities announce semi-annual performance of tech financing in the banking sector. In the first half of 2021, the Industrial Bank of Korea and KEB Hana Bank raked high among the large-sized banks while Kyongnam Bank and Busan Bank showed outstanding records among the smaller-sized banks. Aside from tech credit bureaus (TCBs), banks also have their own tech credit evaluation systems. The banks tech assessment capabilities are evaluated by the authorities every six months. Currently, ten banks have their own tech credit evaluation systems and all ten banks were found to have high assessment capabilities. They have been expanding the application of their own tech credit evaluation systems by making improvements to the necessary infrastructures. As a result, the banks own tech credit evaluation in the f
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Nov 25, 2021

2nd Round of New Deal Fund Sale Plan Announced

The FSC announced the 2nd round of New Deal fund sale plan of KRW80 billion for general investors which will be matched by fiscal investment worth KRW20 billion for creating a master fund in the amount of KRW100 billion. The FSC along with the Korea Development Bank and the Korea Growth Investment Corporation unveiled a plan for creating an additional New Deal fund in September 2021and had since taken steps to select fund management companies. The 2nd round of New Deal funds will be launched for sale on November 29 and will be available for sale for two weeks until December 10 at 16 banks and securities firms including via online channels. An early closure of the sale process may be possible as the 1st round of New Deal funds introduced in March this year were sold out in a single week. The total size of the master fund will amount to KRW100 billion which will be made up of KRW80 billion investment from the private sector and retail investors and KRW20 billion from fiscal investment.In December, the fund will invest in seven feeder funds managed by six fund management companies, which will then begin to make investments in the designated digital and green New Deal sectors. The 2nd round of New Deal funds will be invested in both listed and soon-to-be-listed companies for a period of two years from the time of their creation. Profits made from the investment will be shared with the retail investors who made investments in the fund. The authorities and the fund management companies will regularly provide updates on the investment status and fund management strategies to the public. * Please refer to the attached PDF for details.
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Nov 24, 2021

FSC Revokes Business License of Optimus Asset Management

The FSC decided to issue a revocation of business license on Optimus Asset Management along with other penalty measures imposed on its employees at the 21st regular meeting held on November 24. Pursuant to the Financial Investment Services and Capital Markets Act, the FSC decided to revoke Optimus Asset Managements business license (effective immediately) for numerous counts of violations and inappropriate fund management activities linked to the large-scale redemption freeze causing massive investor damages in 2020. The FSC also decided to impose a fine of KRW114.4 million on Optimus Asset Management and order removal of key board members. The FSC also ordered a transfer of 43 funds in total that are currently managed by Optimus Asset Management to a new fund management companyRecovery Asset Managementthat has been set up by collective efforts of fund sellers. The FSC has designated the Korea Deposit Insurance Corporation to oversee Optimus Asset Managements liquidation process. The authorities will closely monitor the liquidation process and work on effective supervision to ensure that the transferred funds are properly managed by the newly appointed fund management company according to relevant laws. * Please refer to the attached PDF for details.
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Nov 23, 2021

KoFIU Holds International Conference Commemorating 20th Anniversary

The Korea Financial Intelligence Unit (KoFIU) hosted an international conference commemorating the 20th anniversary of its establishment on November 23.The conference was held to promote discussion on virtual asset and other important issues related to the anti-money laundering (AML) regime and foster strong international cooperation in this area. KoFIU Commissioner Kim Jeong-kag delivered a keynote address highlighting the importance of digital transformation and the critical role of the AML/CFT regime for building trust in the financial system. More specifically, Commissioner Kim discussed the need to make use of suptech in the AML/CFT regime and said that the emergence of new technologies and digital financial services makes it necessary for international organizations, regulatory authorities and financial institutions to work for closer cooperation and mutual understanding. On the recently revised Financial Action Task Force (FATF) recommendations on virtual assets and VASPs, Commissioner Kim said that the KoFIU will continue to work on regulatory improvements to ensure that the so-called travel rule for virtual assets and VASPs in Korea reflects global standards set forth by the FATF. The conference consisted of two sessions(a) virtual assets and the AML duties of virtual asset service providers and (b) digital transformation of the AML/CFT regime. Each session featured expert presentations followed by a panel discussion. Some of the notable participants to the venue included FATF president Marcus Pleyer and Thailands Anti-Money Laundering Office chief Piyapun Pingmuang. Officials from foreign FIUs also participated in the conference virtually. * Please refer to the attached PDF for details.
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Nov 22, 2021

FSC Announces Competitive Auction Result of KDIC's Stakes in Woori Financial Group

The FSC announced the result of the competitive auction of 9.3 percent of shares in Woori Financial Group held by the Korea Deposit Insurance Corporation on November 22. The Public Fund Oversight Committee has selected five winning bidders with bidding prices from all bidders exceeding KRW13,000 per share which is higher than the share price (KRW10,800) at the time the auction plan was unveiled on September 9. The five successful bidders are Eugene Private Equity (4%), KTB Asset Management (2.3%), Align Partners Consortium (1%), Dunamu (1%) and Woori Financial Groups employee stock ownership association (1%) with Eugene Private Equity earning the right to appoint an outside board member. With successful result of the auction, the KDIC will no longer be the largest shareholder of WFG and the governments goal of privatization of WFG has been accomplished in this round of auction some 23 years after the injection of public funds for bailout in 1998. The KDICs right to appoint a non-standing board member will expire when the current incumbents term ends in March 2022. The successful bidding result from this round will help recover KRW897.7 billion in public funds injected as bailout, with about KRW12.3 trillion out of the total KRW12.8 trillionor some 96.6 percentbeing recovered. A hundred percent recovery will be made possible if the KDICs holding of the remaining 5.8 percent stakes in WFG are sold at or above KRW10,193. It is expected that the KDIC will complete the share transfer process by December 9. The Public Fund Oversight Committee will work to promptly complete the sale of KDICs remaining shares in WFG at an appropriate time in the future. * Please refer to the attached PDF for details.
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Nov 22, 2021

Joint Debt Adjustment Program to Help Young Adults Struggling with Multiple Debts

The FSC and the Ministry of Education signed an agreement with the Korea Student Aid Foundation (KOSAF) and the Credit Counseling and Recovery Service (CCRS) on November 22 to set up a joint debt adjustment program and help relieve debt burdens of young adults who are struggling with multiple debts. The agreement introduces a joint debt adjustment program which will help young adults struggling with multiple debts (including student loans) by allowing debt cancellation of up to 30 percent off the principal and installment payment of maximum 20 years. As a part of the agreement, the KOSAF newly joined the CCRSs pact for credit recovery support to make student loans eligible for debt adjustment program managed by the CCRS. Thus, the joint debt adjustment program provided by the CCRS will handle both student loans and other types of loans of vulnerable young debtors. From 2022, the authorities expect that some 20,000 young adults who are struggling to pay off student loans will benefit from this program every year.The joint debt adjustment program will provide meaningful assistance to young adults facing the burden of multiple debts. * Please refer to the attached PDF for details.
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Nov 22, 2021

Additional Types of Public Financial Data Made Available through Open APIs

The FSC announced an expansion in the availability of public financial data offered through open APIs at www.data.go.kr. From November 22, public financial data managed by the Korea Exchange, Korea Financial Investment Association, Korea Life Insurance Association, General Insurance Association of Korea and Korea Inclusive Finance Agency will be opened up for use at www.data.go.kr through 18 standardized APIs with 40 functions. Since launching the public financial data platform in April 2019, which began to offer data managed by nine state-backed financial institutions and relevant agencies, the FSC has worked on making more types of public financial data available for a wider use. From June 9, 2020, public financial data from businesses and financial companies became available through open APIsand in September 2020, the authorities along with relevant institutions agreed to promote further opening of public financial data and facilitate its use in the private sector. As a follow-up measure to the last years agreement, the authorities will further open up public financial data managed by the five aforementioned institutions to promote big data analytics through data convergence, etc. The newly added data types include information about stocks and bonds, funds, insurance products, microloan products, etc. The authorities expect that opening up financial data stored and managed by public financial institutions and relevant agencies will help promote innovation and contribute to job creation in the private sector. The authorities will continue to work to meet data demands and seek improvements in the provision of public financial data. * Please refer to the attached PDF for details.
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Nov 19, 2021

FSC Chairman Attends FSB Plenary Meeting and Discusses Importance of Debt Control Measures

FSC Chairman Koh Seungbeom attended the Financial Stability Board Plenary meeting held on November 18 and discussed the importance of managing rising debt levels around the world. The FSB Plenary discussed financial stability outlook, scarring effects from COVID-19, issues affecting Emerging Markets and Developing Economies (EMDEs), implementation of resolution reforms and the FSB work program for 2022. Attending virtually via teleconference, Chairman Koh said that excessive debt accumulations had been problematic in the past, leading to the Asian financial crisis in 1997-1998 and the global financial crisis in 2008. In this regard, Chairman Koh raised concerns about an accumulation of financial imbalances caused by excessive debt and rising asset prices. To ensure stability in the financial system, Chairman Koh stressed the importance of managing household debt growth. Chairman Koh also spoke about increased levels of interconnectedness in financial sectors which raise concerns about the possibility of contagion effect in crisis situations between sectors and across different countries. To help address this problem, Chairman Koh said that international cooperation between regulatory authorities should be strengthened around the FSB. * Please refer to the attached PDF for details.
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Nov 17, 2021

FSC Chairman Pledges Policy Support in Meeting with Specialized Credit Finance Sector

FSC Chairman Koh Seungbeom held a meeting with the heads of credit card companies and other credit finance companies on November 17 and discussed ways to further promote the development of the specialized credit finance sector. Chairmans Remarks The financial industry is undergoing a major change with digital transformation taking place and the convergence of industries between the financial and non-financial sectors. Specialized credit finance businesses are also facing major challenges and thus need to seek alternative ways to strengthen their competitiveness. In this regard, the government will provide support to help promote further growth of the sector. First, the authorities will work to support credit card companies to grow as integrated payment service providers. The authorities will allow credit card companies to provide MyPayment services and expand the types of ancillary service areas they can assume beyond the currently allowed MyData service, small business CB and big data analytics with the aim of promoting the use of big data for new and innovative business areas. Second, the authorities will provide support to help specialized credit finance companies develop financial service platforms that can offer services tailored to the daily needs of financial consumers. The authorities will continue to promote the development of financial services tailored to the needs of individual consumers using MyPayment and MyData services, while considering the possibility of expanding the sectors platform business services into e-commerce areas, etc. Third, the authorities will work to improve regulations to help facilitate investments in new technology startups, promote contactless (and paperless) sales environment for credit card companies, etc. Innovative ways to deliver financial services to consumers in the specialized credit finance sector can have a significant and immediate impact on the consumers daily needs. As such, the government will continue to listen to
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Nov 10, 2021

Korean Translation of SASB Standards Made Available to Facilitate Sustainability Disclosures

The FSC announced that the authorities made available the Korean translated versions of the SASB (Sustainability Accounting Standards Board) standards to help facilitate businesses in adopting and complying with the sustainability disclosure rules. The International Financial Reporting Standards (IFRS) Foundation has recently created a new standard-setting bodythe International Sustainability Standards Board (ISSB)to offer global standards on sustainability disclosures. With the announcement of the plan to improve corporate disclosure rules in January 2021,the FSC unveiled plans to gradually expand the environmental, social and governance (ESG) disclosure requirements to all KOSPI-listed companies by 2030. Currently, some 130 Korean businesses are filing sustainability reports on a voluntary basis using various standards and recommendations offered by the Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD) or SASB. As it is widely expected that the newly created ISSB will develop global sustainability disclosure standards (expected in Q2 2022) based on the SASB standards (in particular, industry-specific standards sorted by sector), the authorities made available the Korean translated versionsof the SASB standards to help businesses prepare in advance. With an enhanced understanding of the SASB standards, the authorities expect that businesses will face less difficulties in preparing their sustainability reports. A wider usage of the SASB standards by companies will help increase consistency in sustainability reporting practices which will also help provide useful information to investors. The authorities will continue to promote ESG disclosure and help businesses prepare for global standards. *Please refer to the attached PDF for details.
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Nov 10, 2021

Household Loans, October 2021

The outstanding balance of loans to households increased KRW6.1 trillion in all financial sectors at the end of October 2021 (up 8.6% y-o-y).The balance of household loans increased KRW5.2 trillion in the banking sector and KRW0.9 trillion in the non-banking sector, showing a steady decline in the growth rate. All financial sectors (y-o-y): +10.0% (Jul) +9.5% (Aug) +9.2% (Sep) +8.6% (Oct) By type, mortgage loans went up KRW5.3 trillion in October, growing at a slower rate compared with the previous month (up KRW6.7 trillion) as the volume of housing transactions dropped. Other types of loans including credit loans grew at a slower rate (up KRW0.8 trillion) compared with the previous month (up KRW1.2 trillion). The growth of household loan balance has been steadily declining since July 2021. The financial authorities will continue to work for the seamless implementation of the household debt management measures announced in October. *Please refer to the attached PDF for details.
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Nov 03, 2021

FSC Proposes Rules Change to Facilitate Overseas Business Operation of Financial Companies

The FSC announced a plan for changing rules to facilitate financial companies business operation and investment activities in overseas markets on November 3. With a growing number of financial companies expanding their business operations overseas, financial companies foreign direct investment (FDI) activities in overseas markets have also grown.The volume of financial companies FDIs has grown in terms of both direct investment for establishing overseas branches and indirect investment through foreign funds. However, the current reporting rules have often caused unnecessary burden for financial companies in their overseas investment activities due to strict filing procedures, etc. As such, the FSC plans to change rules to simplify their reporting requirements and remove unnecessary burden. Key Details a) Currently, FDIs made through foreign funds are subject to the advance reporting requirement regardless of the investment amount. However, FDIs of USD30 million or less made through overseas branches can be subject to ex post facto reporting. Both FDIs made through foreign funds and FDIs made through overseas branches will be allowed for ex post factor reporting within one month for FDIs ofUSD20 million or less. b) Currently, financial companies investing ten percent or more in equity shares of foreign funds are required to report to the FSS about any changes in their ownership status even when changes in their equity shares occur due to changes in investment amounts made by other shareholders in proportion to their own shareholding. FDIs in foreign funds will be subject to the ten percent reporting rule only at the time of making initial investment and financial companies will be exempted from further reporting duties when changes in their shareholding occur without additional investments. c) Currently, some of the routine activities by financial companies overseas branches, such as equity trading or loan transaction of more than one year, are subject to reporting d
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Nov 03, 2021

FSC Chairman Emphasizes Consumer Protection and Discusses Role of Insurance Business

FSC Chairman Koh Seungbeom held a meeting with the heads of insurance companies and relevant officials on November 3 and discussed the role of insurance business and importance of consumer protection. Chairmans Remarks Rapid changes taking place in the structure of demographics, rising interest rates, digital transformation and spread of platform businesses are demanding innovation from the insurance industry. In order to build a foundation for the future of the industry, it is necessary to look at the scope of insurance coverages, the sales and payout process and so on. To help promote further development of the insurance industry, the authorities provide support in the following areas. First, the authorities will provide active support for insurance companies to help strengthen the function private-sector safety net in response to demographic change. The authorities will set up a public-private joint consultative body to formulate measures for improving the indemnity health insurance system. To preemptively respond to newly emerging risks, such as the spread of infectious disease, the government will enhance inter-agency coordination to promote insurance on transmissible diseases. In addition, the authorities will look into ways to strengthen the role of pension insurance to address rapid demographic changes. Second, the government will support diversification of insurance business and their organizational models to help insurers better cope with the changing environment. Specific measures will be prepared to ease the current licensing rules to reflect diversification of consumer needs and insurance products. While continuing to work on introducing small-sum and short-term insurance products, the authorities will allow insurers to assume other related business areas that are deemed to be essential for operating new business, such as a platform-based health care-related service offering. Third, the government will support digital innovation of insurance business to
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Nov 01, 2021

FSC and FSS Launch Taskforce to Closely Monitor Household Debt Management Measures

The FSC and the FSS launched a taskforce on household debt management and held a kick-off meeting on November 1. The taskforce has been set up as part of the efforts to strengthen control over a recent increase in household debt levels. The kick-off meeting was attended by officials from credit guarantee institutions, industry groups and Korea Credit Information Services where participants discussed an overall implementation plan for the recently announced supplemental measures on household debt management. At the meeting, the authorities pledged to closely follow progress in the implementation of the recently announced household debt management measures and to work for the management of household debt growth at a stable level at 4 to 5 percent next year. With regard to collective lending for prospective homeowners (new apartment buyers) who need to take out loans to make balance payments in the fourth quarter of 2021, the authorities will maintain direct communication lines with individual lending institutions to ensure the availability of loans and help prevent credit shortages. The taskforce will seek to find additional measures needed to more effectively manage household debt-related risks by closely examining trends in other developed economies to help promote more responsible lending practices. The taskforce will hold meetings once every one to two weeks to closely follow the implementation of measures while continuing to seek ways for improvement. * Please refer to the attached PDF for details.
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Oct 28, 2021

Consumer Protection Rules Established on Recurring Payment for Subscription Business Users

The FSC approved a revision proposal of the supervisory regulation on specialized credit finance business at its regular meeting held on October 27, which establishes consumer protection rules on recurring payment for subscription business users. The revised rules provide specific details about the notification requirement and standards for fair refund policy. (Notification requirement) Subscription businesses are required to notify their customers seven days prior to switching their service provision from free offering to recurring payment-based services. (Refund policy) Subscription businesses are required to set up fair standards for refund policy, charging only the amount of fee commensurate with the used up monthly service. The revised rules will go into effect from November 18, 2021 along with the revised Enforcement Decree of the Specialized Credit Finance Business Act. * Please refer to the attached PDF for details.
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