TITLE: South Korea's Financial Services Commission Amends Specialized Credit Finance Law to Streamline Card Merchant Enrollment and Expand Intermediary Services
BODY:
On April 28, 2026, South Korea's Financial Services Commission (FSC) approved amendments to the Specialized Credit Finance Business Act Enforcement Decree following cabinet approval. The amendments introduce regulatory improvements focused on institutionalizing innovative financial services and enhancing operational efficiency for credit card merchants and specialized credit finance companies.
The key amendments address two primary areas. First, the enforcement decree now permits non-face-to-face business verification for credit card merchant enrollment. Previously, merchant recruiters were required to physically visit business locations to verify operations, creating delays for small business owners. The amendment allows recruiters to conduct verification electronically using location-tagged photographs uploaded through mobile applications, a practice previously permitted under the innovative financial services framework since November 2020. This change is expected to expedite merchant enrollment and business commencement for small business operators.
Second, the amendments clarify and expand the scope of specialized credit finance companies' operations by explicitly permitting them to engage in intermediary and brokerage services for lease and installment products offered by other companies. Previously, the legal basis for such intermediary activities remained unclear, creating operational uncertainty.
Additionally, the FSC is implementing follow-up measures announced at the November 20, 2025 Credit Finance Company Chief Executive Officer meeting regarding payment convenience for minors. These measures, effective May 4, 2026, include institutionalizing minor family card issuance without requiring separate innovative financial services designation, increasing post-payment transit card usage limits for minors aged 12 and above from 50,000 won to 100,000 won monthly, and lowering the minimum issuance age for post-payment transit-free check cards from 12 to 7 years old.
The enforcement decree amendments are scheduled for promulgation on May 4, 2026, with immediate implementation.