pc
nid 93363
Jun 19, 2026
pthandapani@vixio.com
South Korea
Financial Supervisory Services (FSS) - Press releases
financial services
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1897 charsSouth Korea's Financial Supervisory Services Strengthens Payment Gateway Settlement Fund Protections Through Legislative Changes
On June 19, 2026, South Korea's Financial Supervisory Services (FSS) announced legislative amendments to strengthen oversight of payment gateway (PG) operators and protect settlement funds. The FSS initiated legislative notice and regulatory change notice procedures for amendments to the Electronic Financial Transactions Act Enforcement Decree and Financial Supervision Regulations, set to take effect on December 17, 2026.
The amendments address the Tymepay settlement crisis by mandating that PG operators place all settlement funds held temporarily for merchants or customer refunds under external management. The revised Electronic Financial Transactions Act, which was promulgated on December 16, 2025, introduces several key protections and supervisory measures. PG operators must now externally manage settlement funds in their entirety. Capital requirements for PG operators will increase proportionally to transaction scale, and major shareholder changes now require approval or registration. The FSS established a phased enforcement framework for operators failing to meet management guidance standards and introduced mandatory management disclosure requirements for electronic financial institutions. Additionally, the definition of PG business has been clarified to specify third-party transaction intermediation where operators receive compensation and handle settlement services.
The amendments represent a significant strengthening of supervisory controls over electronic financial operators, particularly addressing systemic risks associated with settlement fund management. The FSS will accept public comments on the proposed amendments during the legislative notice period. Stakeholders, including PG operators, merchants, and financial institutions, should review the detailed amendments and consider submitting feedback to the FSS's Electronic Finance Supervision Division.
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1659 charsSouth Korean Financial Services Commission Seeks Feedback on Proposed Amendments to the Regulations on the Settlement Funds for Payment Gateway Businesses
The Financial Services Commission (FSC) has issued a public notice seeking feedback on its proposed amendments to its regulations on the settlement of funds for payment gateways (PGs)
The proposed amendments contain:
New principles prescribing that PG settlement funds must be securely managed externally through trusts, deposits, or payment guarantee insurance, operating identically to the existing prepaid recharge fund rules.
Regulations mandating an increase in the minimum capital requirement from KRW1bn (US$654,000) to KRW2bn (US$1.3m) won for large-scale PG operators whose quarterly electronic financial transaction volume exceeds KRW30bn (US$19,621,000).
Specific rules governing major shareholder changes, establishing concrete application methods, document requirements, and screening review procedures for changing authorization or registration status.
Provisions outlining mandatory quarterly public disclosures for electronic financial operators, highlighting business guidance standards compliance, external fund management indicators, payment settlement cycles, and semi-annual transaction fees.
Administrative measures implementing a phased enforcement system, allowing the regulatory body to fully revoke business licenses if an operator receives three or more suspension orders for the same violation within a five-year window.
Directives refining the legal definition of PG services to explicitly capture third-party transactions, while excluding secondary or ancillary settlement actions governed by other specific commercial frameworks.
Feedback may be submitted via email to khy448@korea.kr or by post or fax by July 29, 2026.