South Korea's Financial Services Commission (FSC) has required 10 registered electronic financial businesses, including The Pay and Travel Wallet, to increase capital after they failed one or more prudential management standards based on their positions at end-December 2025. Travel Wallet must also improve profitability by changing its business structure. This is the first use of powers created by the revised Electronic Financial Transactions Act to require remedial action from registered providers such as payment gateways and prepaid-service businesses. Deficiencies varied by firm and involved equity, liquidity, capital relative to outstanding balances and ratios of low investment-risk assets. The firms must complete the required improvements by Jan. 31, 2027, while continuing normal operations because the measures impose no business restrictions. Failure to comply may lead to partial or full suspension following an FSC decision, although the commission may allow up to six additional months where a firm demonstrates concrete progress or submits a substantiated implementation plan. The FSC assessed the risk of user losses as low. Seven firms hold less than KRW 100 million in payment-gateway settlement funds and prepaid balances, while the other three comply with requirements for segregating prepaid funds and externally managing settlement funds.
South Korea Financial Services Commission2026-07-31
South Korea's Financial Services Commission requires 10 electronic financial businesses to raise capital in first use of new powers
South Korea's Financial Services Commission has ordered 10 registered electronic financial businesses that breached prudential standards to raise capital by Jan. 31, 2027, with Travel Wallet also required to improve profitability through business restructuring. The first action under the revised Electronic Financial Transactions Act does not restrict current operations, but noncompliance may lead to partial or full suspension.