Regulatory Alerts2015-11-25
Added · Updated
Amendments Proposed to Improve the Oversight of Moneylenders
The Financial Services Commission proposes amendments to the Enforcement Decree of the Act on Registration of Credit Business, etc., and Protection of Finance Users, effective July 25, 2016. Moneylenders with assets exceeding KRW12 billion must register with the Commission and maintain a minimum capital of KRW300 million. The assets of a moneylender are capped at ten times the amount of capital, and those with assets greater than KRW20 billion must implement consumer protection standards and operate with a consumer protection monitor. Eligible buyers for moneylenders’ loans are limited to financial firms and other regulated entities.