The management improvement system for electronic financial service providers was activated for the first time following the large-scale settlement crisis involving TMON and WEMAKEPRICE. The financial authorities have demanded capital increases from 10 companies, including Travel Wallet, and warned that failure to comply by the deadline could result in operational suspension.
The Financial Services Commission announced on July 31 during its regular meeting that it has decided to require capital increases and other measures from 10 electronic financial service providers that failed to meet management guidance standards as of the end of last year. The companies affected are: △ ThePay △ VPayments △ CyrexPay △ OrangeSquare △ IromNet △ JikPay △ Connect △ Core Financial △ Travel Wallet △ PortOne Solutions.
Electronic financial service providers include payment gateway (PG) companies that handle online payments and prepaid companies that operate rechargeable payment methods. These firms are required to maintain a certain level of capital and liquidity due to their handling of customer payment and recharge funds.
The companies targeted by this action did not meet standards for capital, liquidity ratios, and the ratio of safe assets. ThePay, JikPay, and Connect violated capital and liquidity standards, while CyrexPay fell short of the safe asset holding standard.
Travel Wallet was found to have insufficient capital compared to the unused balance of customer funds that had been recharged. The Financial Services Commission has requested that Travel Wallet increase its capital and improve its business structure to enhance profitability. The other companies have been ordered to increase their capital.
The 10 companies must implement the management improvement measures by January 31, 2027. If they fail to improve by the deadline, some or all of their operations may be suspended following a decision by the Financial Services Commission. However, they can receive an extension of up to six months if they submit improvement results or specific plans.
This action became possible after the revision and implementation of the Electronic Financial Transactions Act in December last year, following the TMON settlement crisis. Previously, the financial authorities lacked the means to directly demand capital increases from electronic financial service providers even if their management conditions deteriorated.
The Financial Services Commission explained that this action does not constitute an operational suspension, and the companies will continue normal operations during the improvement period. Among the 10 targeted firms, seven have PG settlement funds or prepaid recharge funds of less than 100 million won, and the remaining three manage customer funds separately, reducing the likelihood of user harm.
* This article has been translated by AI.
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