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South Korea: fintech & payments regulation

Regulated

South Korea fintech & payments: FSC-led licensing, fund segregation, and credit data reforms

Lead regulator:
Financial Services Commission (FSC)
Key law:
Act on Electronic Financial Transactions (2024 revisions)
Last updated:
2026-07-12

South Korea maintains a comprehensive regulatory framework for fintech and payments, primarily overseen by the Financial Services Commission (FSC) with operational supervision by the Financial Supervisory Service (FSS). The regime mandates strict licensing for core financial activities, including internet-only banks, payment gateways, and credit information businesses, with recent updates focusing on consumer protection and market access.

Key regulatory developments include mandatory fund segregation for payment gateway and prepayment service providers to prevent delays and protect advance payments, as well as revised rules allowing credit card companies to operate business credit bureaus. The jurisdiction has also lowered entry barriers for credit rating services and abolished legacy investment registration certificates to facilitate foreign investment.

The regulatory direction of travel emphasizes sustainability, innovativeness, and inclusiveness in new banking licenses, while simultaneously tightening oversight of moneylenders and P2P lending platforms. Capital requirements and operational agility for financial holding companies are being adjusted to support fintech investment and synergies within financial conglomerates.

Who regulates

  • Financial Services Commission (FSC)

    Primary policy-making and legislative amendment authority for financial holding companies, credit information, specialized credit finance, internet-only banks, payment gateways, and electronic financial transactions.

    [1][2][3][4][5][6][7][8][9]

  • Financial Supervisory Service (FSS)

    Operational supervisor proposing amendments to enforcement decrees for credit business registration, moneylender oversight, and P2P lending structures.

    [8][9]

Core laws & rules

  • Act on Electronic Financial Transactions (2024)

    Revised rules taking effect September 15, 2024, mandate separate management of customer funds for prepayment service providers and restrict the use of advance payments to close regulatory loopholes.

    [6]

  • Financial Holding Companies Act (2025)

    Proposed legislative amendments to raise the fintech investment cap from 5% to 15% and permit fintech subsidiaries to enhance operational agility.

    [1]

  • Credit Information Use and Protection Act (2024)

    Revised rules to lower entry barriers for business credit rating service providers by abolishing specific investment requirements for financial companies.

    [2]

  • Specialized Credit Finance Business Act (2024)

    Enforcement Decree revisions permit specialized credit finance businesses, such as credit card companies, to concurrently operate business credit bureaus.

    [3]

  • Act on Registration of Credit Business and Protection of Finance Users (2017)

    Amendments establishing direct regulatory oversight for moneylenders created and controlled by peer-to-peer (P2P) operators.

    [8]

Licensing & registration

  • Internet-only Bank

    New licensing criteria adopted in November 2024 focus on sustainability, innovativeness, and inclusiveness, with rigorous assessment of capital stability and credit evaluation viability. Timeline: November 2024

    [4]

  • Payment Gateway Service

    Providers must securely segregate unsettled funds to prevent payment delays, with phased implementation and enforcement tools for noncompliance. Timeline: September 2024

    [5]

  • Credit Information Business

    Entry barriers lowered for business credit rating service providers; specific investment requirements for financial companies abolished. Timeline: December 2024

    [2]

Restrictions & warnings

  • Prepayment service providers are mandated to separately manage customer funds and restrict the use of advance payments to protect consumers.

    [6]

  • Moneylenders face stricter registration and supervision protocols, including caps on asset-capital ratios, with direct oversight for P2P-controlled moneylenders.

    [8][9]

Direction of travel

  • Regulatory direction emphasizes enhancing market access for foreign investors by abolishing the 30-year-old Investment Registration Certificate requirement, resulting in significant increases in new accounts.

    [7]

  • Future regulatory improvements aim to foster synergies within financial conglomerates by raising fintech investment caps and permitting fintech subsidiaries under the Financial Holding Companies Act.

    [1]

Sources

  1. FSC Proposes Legislative Changes to Improve Regulations on Financial Holding Companies · 2025-04-14
  2. Revised Rules on Credit Information Businesses to Lower Entry Barrier · 2024-12-17
  3. Revised Rules on Specialized Credit Finance Business to Allow Card Companies to Make Use of Business Credit Data · 2024-12-03
  4. Licensing Criteria for New Internet-only Bank to Focus on Sustainability Based on Innovativeness and Inclusiveness · 2024-11-28
  5. Regulatory Improvements Proposed for Payment Gateway Services in Wake of Recent E-commerce Payment Failures · 2024-09-09
  6. Revised Rules on Electronic Financial Transactions to Take Effect from September 15 · 2024-09-03
  7. Abolishment of Investment Registration Certificates Improves Market Access for Foreign Investors · 2024-06-21
  8. Amendments to the Enforcement Decree of the Act on Registration of Credit Business and Protection of Finance Users · 2017-02-17
  9. Amendments Proposed to Improve the Oversight of Moneylenders · 2015-12-13

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This guide is compiled automatically from 9 primary-source documents published by South Korea's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.