South Korea’s Financial Services Commission announced that the cabinet has approved amendments to the Enforcement Decree under the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss, expanding customer due diligence (CDD) requirements to additional loan businesses as part of measures to curb vishing and related fraud losses. Under the revised rule, specialized credit finance businesses (excluding firms specialized in new technology financing) and consumer credit businesses with KRW50 billion or more in assets will be newly required to conduct CDD when providing loan services, including via telephone, mobile phone, face-to-face interactions and video calls. Breaches of the CDD obligation may result in an administrative fine of up to KRW10 million and can trigger requirements to compensate victims; the FSC framed the change as a response to cases where stolen personal information is used to take out loans, complementing existing provisions that have mainly applied to account-issuing institutions. The revised Enforcement Decree will take effect six months after promulgation.
South Korea Financial Services Commission 2025-11-04
South Korea Financial Services Commission announces cabinet approval to extend CDD duties to credit finance and consumer credit firms with at least KRW50 billion in assets
South Korea's Financial Services Commission announced cabinet approval of amendments to the Enforcement Decree under the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud. The changes expand customer due diligence requirements to include specialized credit finance and consumer credit businesses with assets of KRW50 billion or more, aiming to curb vishing and related fraud. Non-compliance may result in fines up to KRW10 million and compensation obligations for victims.