Electronic Financial Industry Surpasses 12 Trillion Won in Revenue

Mobile-centric digital financial transactions have rapidly expanded, leading to significant growth in the electronic financial industry last year. However, smaller firms are struggling to improve profitability, exacerbating industry polarization.

According to the Financial Supervisory Service, the electronic financial industry's revenue reached 12 trillion won last year, marking a 15.4% increase (1.6 trillion won) from the previous year. Payment gateway (PG) revenue accounted for 9 trillion won, while revenue from the issuance and management of prepaid electronic payment methods totaled 2.2 trillion won. Notably, revenue from prepaid services surged by 29.4% compared to the previous year.

Despite overall growth, polarization within the sector is intensifying. As of the end of last year, the top 10 companies among the 241 registered electronic financial firms accounted for 67% of total industry revenue, while smaller firms faced challenges in securing profitability.

In fact, as of the end of last year, 29 electronic financial firms did not meet capital requirements and other management guidelines, an increase of one from the previous year. Among these, 21 firms had a history of non-compliance with the standards.

However, financial authorities noted that most of the non-compliant firms are small businesses, and that prepaid funds are managed separately through external trusts, limiting potential harm to users.

The Financial Supervisory Service plans to strengthen financial disclosure requirements for electronic financial firms starting at the end of next year, in accordance with the revised Electronic Financial Transactions Act. They will also establish a sound management system through demands for corrective actions from non-compliant firms.



* This article has been translated by AI.

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