[Legal Review] Regarding the possibility of violation of laws such as the Financial Consumer Protection Act]

Law firm Veat conducted a legal review for A, a company receiving a referral to examine the potential violation of relevant regulations, including the Financial Consumer Protection Act, based on the request of A, which provides e-commerce services.

A planned free insurance events, such as selling insurance products through its e-commerce platform and prepaying insurance premiums, and was concerned about the possibility of these events violating the Financial Consumer Protection Act (Financial Consumer Protection Act, FSA) and the Insurance Business Act, and entrusted Law firm Veat with a review request.

Subsequently, Law firm Veat thoroughly understood the content of A’s planned insurance product sales event and examined the potential violation of regulations, including the Financial Consumer Protection Act (Financial Consumer Protection Act, FSA) and the Insurance Business Act, and provided an opinion.

The Financial Consumer Protection Act (Financial Consumer Protection Act, FSA), which was fully implemented from May 25th, regulates all financial products in principle. In case of violation, a punitive fine system has been introduced, imposing fines of up to 100 million won, and companies operating related businesses can be sentenced to imprisonment for up to 5 years and a fine of up to 200 million won. Therefore, companies operating related businesses need to legally check and be cautious.