Fintech 2026

SOUTH KOREA Law and Practice Contributed by: Jongbaek Park, Seungil Hong, Seyeong Im and Eric Jeong, Bae, Kim & Lee LLC

banking and payment services on mobile/online plat - forms, while securities firms are offering investment products on mobile/online platforms and co-operating with multiple robo-adviser service providers to pro - vide automated advisory services and AI-based asset management and research services. These legacy players are also constantly researching and attempt - ing to apply blockchain technology to their legacy financial services. 2.2 Regulatory Regime Fintech business models in Korea should comply with the specific legislation that applies to them because of the nature of their business. They should also com - ply with existing financial legislation. Fintech compa - nies may therefore be subject to various legislation depending on the nature of their business. The main verticals are as follows: • Online/mobile payment service providers (other than banks) in e-commerce are regulated as pre - paid/debit e-payment means or PG service provid - ers under the EFTA. • Internet-only banks without physical offices are regulated by the Banking Act, subject to spe - cific special treatments relating to their licensing, governance and business activities pursuant to the Special Act on the Establishment and Operation of Internet-only Banks (the “Internet Bank Act”). • P2P lending platform operators are regulated by the Online Investment-Linked Finance Act (the “P2P Lending Act”) in respect of their licensing and ongoing compliance. • Robo-advisers are regulated under the Financial Investment Services and Capital Markets Act (the “FSCMA”). • Algorithmic trading is subject to registration with the Korea Exchange (the “KRX”) pursuant to the KRX Business Regulations as well as the FSCMA. • Cryptocurrency exchanges and digital wallet ser - vice providers are regulated as VASPs under the Act on Reporting and Using Specified Financial Transaction Information (the “AML Act”) in respect of their licensing and ongoing compliance including anti-money laundering obligations and the Act on the Protection of Virtual Asset Users (the “VAUPA”) in respect of their business activities and user protection.

• Insurtechs offering or brokering insurance products are regulated by the Insurance Business Act. • MyData is regulated as a personal credit informa - tion management business under the Credit Infor - mation Use and Protection Act (the “CIUPA”). In addition, the legislation that generally applies to fintech business models depending on their business elements are as follows: • The Banking Act (if the company engages in accepting deposits from customers and providing loans). • The FSCMA (if the company engages in investment dealing or brokerage, discretionary management or investment advice or if financial investment prod - ucts such as securities or derivatives are involved). • The Insurance Business Act (if the company sells insurance products). • The Act on Registration of Money Lending Busi - ness and Protection of Finance Users (the “Lending Business Act”) (if the company engages in provid - ing loans without engaging in accepting customer deposits). • The Financial Consumer Protection Act (if the company engages in selling or advertising financial products, including loans and insurance products, to customers). • The CIUPA (if the company engages in providing credit rating or credit information or is involved in the transfer of personal credit information). • The Personal Information Protection Act (the “PIPA”) (in respect of the collection or transfer of personal information generally). • The Act on Promotion of Information and Commu - nications Network Utilisation and Information Pro - tection, Etc (the “IT Network Act”) (if the company is an online service provider that is required to take certain information security measures). • The Foreign Exchange Transactions Act (the “FETA”) (in respect of any payment between a Korean resident and a non-resident or any payment using a foreign currency). • The Special Act on Support for Financial Innova - tion (in respect of the operation of the regulatory sandbox programme).

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