pc
nid 94077
Jul 17, 2026
pthandapani@vixio.com
South Korea
Financial Services Commission
horizon scanning
61% of draft length
draft in Generated
Generated
2303 charsSouth Korea's Financial Services Commission Amends Electronic Finance Supervision Rules
On July 15, 2026, South Korea's Financial Services Commission (FSC) approved amendments to the Electronic Finance Supervision Rules (전자금융감독규정) to strengthen merchant protection and promote market soundness in the payment gateway (PG) sector.
The amendments address two key areas. First, the FSC clarifies merchant fee disclosure obligations for financial companies and electronic finance businesses. Previously, regulations specified only the method of disclosure but not the content or timing. Under the revised rules, electronic finance businesses must now separately identify and disclose payment processing fees when establishing, renewing, or modifying merchant contracts. When fee structures change unfavourably to merchants, businesses must provide notice at least one month in advance. This enhancement aims to enable small business owners to make informed decisions about service providers and encourage competitive fee reductions.
Second, the amendments introduce risk assessment obligations for prepaid payment service providers and upper-tier PG operators regarding their lower-tier PG operators. As multi-tiered PG structures have proliferated with online payment market growth, some operators have engaged in illegal transaction processing. The revised rules mandate that upper-tier operators assess lower-tier operators' financial soundness and legal compliance risk during contract formation, renewal, and periodically during the contract term. Assessment criteria include PG registration status, compliance with management guidelines, financial condition, settlement fund management, and financial penalties or illegal activity history within the past year. During the first year of implementation (October 1, 2026 to September 30, 2027), assessments occur semi-annually; thereafter, quarterly assessments are required. Upper-tier operators must maintain assessment records for five years and take necessary action—including contract non-renewal, termination, or corrective measures—against high-risk lower-tier operators.
The amended rules take effect immediately following FSC approval, except risk assessment provisions, which commence October 1, 2026, to allow industry preparation time. The Financial Supervisory Service (금감원) plans to conduct explanatory sessions in July 2026.
Agent draft
Not run yet.
Published
1396 charsSouth Korea's Financial Services Commission Amends Electronic Finance Supervision Rules
On July 15, 2026, the Financial Services Commission (FSC) issued the Partial Amendment to the Electronic Financial Supervisory Regulation.
The issued amendment contains:
Administrative measures detailing merchant fee notification obligations, which mandate that financial companies and electronic financial business operators must separately notify payment fees upon contract signing, renewal, or when fee criteria change.
Specific rules mandating that if payment fee criteria are changed unfavorably for merchants, the notification must be provided one month prior to the change date to enhance merchant protection.
Regulations prescribing the risk assessment of lower-tier Payment Gateway (PG) operators, requiring prepaid business operators and upper-tier PG operators to evaluate the financial soundness and illegal act risks of lower-tier PGs upon contract signing, renewal, and regularly during the contract period.
Provisions outlining the required actions following risk evaluations, establishing that upper-tier operators must take necessary actions such as contract non-renewal, correction demands, or termination against high-risk lower-tier PG operators, and must maintain evaluation records for five years.
The amendment enters into effect immediately, with the exception of the risk assessment provisions for lower-tier PG operators, which come into force on October 01, 2026.