Enforcement of the Gold Sox Act… A massive reorganization and suspension of fintech services ‘reorganization’

Kakao Pay, fund sales and brokerage entity specified
Suspension of ‘insurance solver’ with possible illegality
Toss applies for loan solicitor registration with financial authorities
NHN Payco discloses financial product details

<(Photo = Financial Services Commission)>

As the Financial Consumer Protection Act came into effect on the 25th, fintech platform companies reorganized their services. Services that have not been able to eliminate the potential for violations of the prohibition law are stopped altogether and changes are sought in the future.

On the 26th, 13 fintech platforms, such as Kakao Pay, Toss, NHN Payco, and Finck, improved their services to meet the legal framework.

Kakao Pay reorganized its fund division to continue providing investment services such as ‘collecting coins’ and ‘collecting eggs.’

The listing schedule was delayed by about three weeks in accordance with the reflection of guidance from the financial authorities related to the Gold Soil Act. As related details are described in the investment risk factors of the securities declaration form, November 3 is newly set as the scheduled listing date. It is scheduled to conduct a demand forecast for institutional investors from the 20th to the 21st of next month to determine the final offering price and to receive general subscriptions on the 25th to the 26th. The total number of IPO shares and the IPO price remain the same.

Viva Republica, which provides toss service, applied to the financial authorities for registration as a financial product sales agent/broker (loan solicitor) for the loan solicitation business.

NHN Payco has completely reorganized its services to not provide detailed information on financial products such as cards and insurance. Detailed information for each product can be checked only by accessing the website of the selling financial company.

For each service, such as deposits, securities, cards, and loans, which Finck has provided through partnerships with various institutions, the provider and instructions were clearly indicated, and whether advertising or brokerage was clearly indicated. The name of the product and the method of providing the service were also significantly revised.

Insurance-related services, which had been controversial, have changed drastically.

Previously, the financial authorities defined ‘insurance consulting’ as a service on the money lender platform, and stipulated that it was effectively a ‘advisory business’, stating that both procedures and follow-up management after consulting requests were managed within the platform.

Toss has included a notice to prevent users from misunderstanding about the insurance service it is providing. It maintains the service as a simple introduction or advertiser. Therefore, when the user uses the service, contents such as ‘Move to Toss Insurance’ or ‘Move to Toss Insurance Partner’s planner’ are displayed.

An official from Toss explained, “We decided to insert the phrase that we would simply introduce ourselves within the Toss platform and move to Toss Insurance or Toss insurance partners. did.

Kakao Pay has suspended its insurance advisory service. It provided an ‘insurance solver’ service using a professional counselor belonging to Rich & Co, but it was discontinued because it was reported that there was a possibility of violating the Gold Law.

Previously, Kakao Pay stopped selling some insurance products following the car insurance premium comparison service and reorganized the screen.

Finck has temporarily suspended its insurance recommendation service. In the future, when the financial authorities allow electronic financial services companies or My Data business operators to qualify as corporate insurance agents (GAs), they decided to review the service.

Bomap reorganized its insurance consulting platform ‘Guaranteed Fitting’.

The key to Guaranteed Fitting is a service that guides you on the appropriate level for each insurance and helps you prepare for risks according to your individual circumstances. However, according to the financial authorities’ pointed out, services such as product recommendation and subscription support provided by the platform have been excluded.

The Financial Services Commission said, “All major fintech platforms have completed service reorganization.

Reporter Jihye Kim, [email protected], Reporter Yunho Park [email protected]

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