“Review of specialized provisions for prepaid electronic payment methods reflecting amendments to the Electronic Financial Transactions Act.”

Law Firm Veat provided legal review for A Company’s community platform regarding prepaid electronic payment methods and the amended “Electronic Financial Transactions Act,” including the applicable provisions.

Law Firm Veat Startup Advisory Team reviewed the requirements for “prepaid electronic payment methods,” which stipulates that a third party other than the issuer and its related parties purchases goods or services and pays the price if the means of payment is used for streamers' support and other similar purposes; also, it examined whether the requirements of the “prepaid electronic payment method” are met if the payment is made for merchandise and subscriptions related to the customer’s mission and achievement.

Specifically, the Law Firm Veat Startup Advisory Team applied to companies that meet the requirements for “prepaid electronic payment methods” – including registration obligation with the Financial Services Commission, protection of prepaid funds, compliance with merchant terms, etc. – to provide detailed guidance to ensure businesses properly comply with the law.

2024. 9. 5. Implementation of the Amended “Electronic Financial Transactions Act”

According to the amended “Electronic Financial Transactions Act,” the definition of “prepaid electronic payment methods” has been expanded to include “records issued in electronic form that have been converted and stored electronically.” As a result, paper-based prepaid payment methods converted to electronic form are also considered “prepaid electronic payment methods.”

Furthermore, the current requirement that the scope of purchase of goods or services must be two or more industries is no longer needed.

Startup Advisory Team, which thoroughly examines the “Electronic Financial Transactions Act” based on real-world cases

Law Firm Veat Startup Advisory Team conducted a professional review of prepaid payment methods within the platform of a digital healthcare client.

Regarding points, it examined the possibility of falling under “prepaid electronic payment methods” under the “Electronic Financial Transactions Act” and exemption from registration. Specifically, it reviewed two key requirements for the client’s prepaid electronic payment method and considered the possibility of falling under an exemption from registration.

Regarding payment methods, inquiries about the payment system based on the PG (Payment Gateway) taken by most open markets were addressed. It reviewed the official stance of the Financial Supervisory Service, the governing body, and interpretations under the “Electronic Financial Transactions Act” to provide detailed guidance to the client.

Through the implementation of the amended “Electronic Financial Transactions Act,” the definition and scope of “prepaid electronic payment methods” have changed, which can significantly impact many businesses.

In particular, the need to conduct a legal review in advance is strongly emphasized for various platform service providers, including internet broadcasting platforms.

Law Firm Veat Startup Advisory Team provides legal issues and solutions applicable to a variety of businesses based on deep expertise in the “Electronic Financial Transactions Act.” To minimize legal risks and maximize business growth, please contact the Law Firm Veat Startup Specialist Startup Advisory Team.

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