"Legal Review Related to the Introduction of Biometric Authentication in Online Investment-linked Finance Business"

Law firm Veat received a request from online investment-linked financial services provider A (hereinafter referred to as "the client") regarding a legal review of the introduction of biometric authentication for online investment-linked finance.

The client intended to utilize a biometric authentication method in the process of confirming the investor's linked investment expression of intent. Accordingly, Law firm Veat reviewed whether the biometric authentication method is permissible under the Online Investment-Linked Financial Services Act and provided legal advice to ensure compliance with relevant laws and regulations.

The Online Investment-Linked Financial Services Act specifies several methods for confirming an investor's expression of intent. According to this act, methods such as signature, certified signature, audio recording, email, mail, telephone automated response system, direct drafting by the investor, and verification methods of verification agencies are listed as methods for confirming investor intent. Law firm Veat reviewed whether the biometric authentication method could be recognized as one of these listed methods.

Biometric authentication methods utilize the user's physical characteristics such as fingerprints, iris, and facial recognition, providing high security and convenience. We determined whether the biometric authentication method could be included in the verification methods of verification agencies specified in the Online Investment-Linked Financial Services Act and whether it complies with the act.

In addition, various laws and regulations governing the online investment-linked financial services business, including the Financial Consumer Protection Act and the Special Financial Information Act, must be complied with. Law firm Veat comprehensively reviewed the Financial Consumer Protection Act and the Special Financial Information Act, to ensure that the linked investment process does not violate relevant laws and regulations.

While introducing biometric authentication when an online investment-linked financial services provider confirms the investor's expression of intent can enhance investor convenience and strengthen security, it is essential to proceed with a legal review to determine whether it is an appropriate method of verifying investor intent under the Online Investment-Linked Financial Services Act. Law firm Veat has supported online investment-linked financial services providers to minimize legal risks and provide appropriate and efficient confirmation of investor intent through professional legal review.

Law firm Veat's e-commerce team recognizes the importance of the Online Investment-Linked Financial Services Act, the Financial Consumer Protection Act, and the Special Financial Information Act, and is providing clients with detailed legal advice to ensure they meet the legal requirements stipulated in each law, such as principles and prohibitions.

Law firm Veat contributes to minimizing legal risks by leveraging its extensive experience and expertise accumulated in innovative financial sectors such as online investment-linked finance, accurately understanding complex legal requirements, and providing customized advice tailored to the client's business model.

If you have various legal questions arising from operating an online investment-linked financial services business, or if you need legal advice regarding the Online Investment-Linked Financial Services Act, the Financial Consumer Protection Act, or the Special Financial Information Act, please contact Law firm Veat.

Thank you.

Sincerely, Law firm Veat