SOUTH KOREA Law and Practice Contributed by: Jongbaek Park, Seungil Hong, Seyeong Im and Eric Jeong, Bae, Kim & Lee LLC
12.3 Responsibility for Losses Under the EFTA, financial institutions and electronic financial service providers are liable for compensat - ing customers for all damages arising in the following cases: • accidents caused by the forgery or alteration of means of access; • accidents arising from the electronic transmission or processing of contract formation or transaction instructions; and • accidents resulting from the use of means of access obtained through false or fraudulent means by intruding into electronic devices or information communication networks for electronic financial transactions. However, an electronic financial service provider may have a defence if it can prove that the customer acted with intent or gross negligence; and if an agreement was made with the customer in advance regarding the customer bearing partial responsibility for damages in these cases or if due diligence was sufficiently per - formed for corporate clients, the customer may bear all or part of the responsibility for any such damages.
or altered credit cards. In these cases, the elements related to the forgery or alteration of the credit card must be met for the offence to apply. Similarly, the EFTA regulates acts involving means of access. 12.2 Areas of Regulatory Focus Regulatory authorities monitor various types of fraud, including: • electronic communications financial fraud (such as phishing, smishing and pharming); • authorised push payment fraud; • illegal loan fraud; and • cryptocurrency-related fraud (eg, market manipula - tion). Special attention is given to monitoring electronic communications financial fraud that involves the leak - ing of personal information.
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