[Background for Promotion] 

- Following the TMON-Wemakepofe incident in July 2024 (*), the need arose to establish protective mechanisms for settlement funds and management/supervisory measures for the sound management of electronic financial businesses. 

* Unsettled amounts to sellers: 1.3 trillion KRW; Number of affected companies: 48,000

- The Electronic Financial Transactions Act amended in December 2025 (effective December 17, 2026 *) mandates the external management of settlement funds for Payment Gateway (PG) businesses and establishes practical management and supervisory measures for PG operators. 

* However, correction order requirements for non-compliance with management guidance standards and the obligation to separately manage prepaid funds take effect from the date of promulgation.

[Regulatory Content] 

A. External Management of Settlement Target Amounts (Draft Article 13-8, Paragraphs 2, 3, and 4; Draft Article 13-9)

- Specifies detailed requirements for settlement fund management institutions capable of external management of settlement target amounts, methods of payment guarantee insurance and trusts, and safe methods for operating settlement target amounts.

B. Compliance Requirements Regarding the Payment of Settlement Target Amounts (Draft Article 13-11, Paragraphs 3, 6, 7, and 8)

- Establishes the methods and procedures to be observed by settlement fund management institutions when paying settlement target amounts, and imposes obligations on electronic payment gateway operators to provide prior notice upon the occurrence of grounds for settlement fund payment, and to re-institute external management within 14 days if events such as the dissolution or bankruptcy of the settlement fund management institution occur.

C. Compliance Requirements Regarding External Management of Settlement Target Amounts (Draft Article 13-12)