To prevent bank transfer fraud, South Korea now requires card companies and large lenders to verify identity

In the future, to prevent bank transfer fraud (voice phishing) associated with card loans and non-face-to-face loans from lenders, the obligation to verify identity will also be applied to credit card companies and major lenders.
The Financial Services Commission of Korea has proposed a bill called the "Communication Fraud Victim Refund Law" that will impose user verification measures on leasing and credit companies (credit specialized financial companies) and money lenders with assets of 50 billion won (approximately 5 billion yen) or more.
The bill to amend the enforcement order of the law was announced on the 12th as a legislative teaser. This is a follow-up to the measures to strengthen measures against bank transfer fraud announced at the National Life Crime Check Conference held in March this year.
Under the current "Telecommunication Fraud Victim Refund Law," when a user applies for a loan or cancels a financial product such as a fixed-term deposit, financial companies must
The new law requires users to take steps to verify their identities, but until now this has not included card companies or money lending businesses.
Once the amendment goes into effect, most credit specialist financial companies dealing in personal loans and those with assets of 50 billion won will be
Moneylenders with a credit rating of 10 or more will be required to conduct identity verification during financial transactions such as loans. On the other hand, companies specializing in new technology business finance, which cannot provide loans to individuals, will not be subject to the law.
The proposed amendment will undergo a legislative teaser period until the 23rd of next month, and will then be published in the third quarter after review by the Legislative Bureau, and will come into effect six months later.
"It is expected that the amendments will result in more thorough identity verification during financial transactions and strengthen protection for users."