Article 57(Administrative fines) #
(1) Any of the following persons shall be subject to an administrative fine not exceeding 50 million won:
1. A person who fails to register a change, in violation of Article 7 (1);
2. A person who receives fees or interest, in violation of Article 11 (1) or (2);
3. A person who discriminates against users, without good cause, in determining criteria for the imposition of fees, in violation of Article 11 (4);
4. A person who breaches any obligation relating to online investment-linked financial business under Article 12 (2) through (9);
5. A person who conducts the business in deviation of the scope of the business under Article 13;
6. A person who breaches the obligation to provide information under Article 22 (1) and (2);
7. A person who fails to obtain confirmation on an investor’s understanding by signature or other means, in violation of Article 22 (3);
8. A person who omits important information or provides false or misleading information, in violation of Article 22 (4);
9. A person who fails to notify investors of the fact that a P2P loan is overdue and the reason therefor or who fails to post such fact on the online platform, in violation of Article 22 (5);
10. A person who fails to comply with an order to modify under Article 25 (7);
11. A person who breaches the obligation to manage invested funds, etc. under Article 26;
12. A person who breaches the obligation to manage P2P loans, etc. under Article 27;
13. A person who fails to take measures necessary for the observance of limits, in violation of Article 32 (3);
14. A person who transfers a right to receive principal and interest payments, in violation of Article 34 (1) and (2);
15. A person who fails to take necessary measures, in violation of Article 34 (3);
16. A person who makes a P2P investment, in violation of Article 35 (1);
17. A person who fails to take necessary measures, in violation of Article 35 (2);
18. A person who fails to join the Association, in violation of Article 40 (1);
19. A person who refuses to admit an online investment-linked financial business entity to the membership or imposes unreasonable conditions to the admission to the membership, without good cause, in violation of Article 40 (2);
20. A person who refuses, obstructs, or evades the inspection under Article 44 (including cases applicable mutatis mutandis in Articles 33 (5) and 41);
21. A person who fails to comply with a request to submit materials or to have relevant persons make an appearance to express their opinions orally, in violation of Article 44 (3) (including cases applicable mutatis mutandis in Articles 33 (5) and 41).
(2) Any of the following persons shall be subject to an administrative fine not exceeding 30 million won:
1. A person who fails to protect users’ interests or conducts any act detrimental to the interests of users for its own interests or for a third party’s interests, in violation of Article 9 (1) or (2);
2. A person who breaches the obligation of public disclosure under Article 10 (1);
3. A person who fails to establish criteria for the imposition of fees or fails to publicly disclose such criteria through its online platform, in violation of Article 11 (3);
4. A person who fails to report, in violation of Article 14 (1) or (2);
5. A person who entrust business, in violation of Article 15 (1);
6. A person who violates Article 16 (1) in accounting;
7. A person who fails to prepare internal control standards or fails to appoint a compliance officer, in violation of Article 17 (1) or (2);
8. A compliance officer appointed under Article 17 (2), who fails to monitor the observance of internal control standards or fails to report a violation of internal control standards to the auditor or audit committee, although he or she discovered such violation;
9. A person who breaches the obligation to manage conflicts of interest under Article 18;
10. A person who makes an advertisement, in violation of Article 19;
11. A person who fails to verify information about a borrower, in violation of Article 20 (1);
12. A person who executes a P2P loan in excess of a borrower’s objective capability of repayment, in violation of Article 20 (3);
13. A person who uses information about a borrower for any purpose other than the authorized purposes, in violation of Article 20 (4);
14. A person who fails to verify the identity of an investor, in violation of Article 21 (1);
15. A person who uses information about an investor for any purpose other than the authorized purposes, in violation of Article 21 (4);
16. A person who breaches the obligation to deliver agreement documents to an investor under Article 23 (1);
17. A person who fails to return an invested fund, without delay, in violation of Article 23 (3);
18. A person who fails to retain materials relating to a P2P investment agreement for five years, in violation of Article 23 (4);
19. A person who breaches the obligation to deliver an agreement to a borrower under Article 24 (1);
20. A person who breaches the obligation to explain to a borrower under Article 24 (2);
21. A person who fails to retain materials relating to a P2P loan agreement for five years, in violation of Article 24 (3);
22. A person who refuses to allow the inspection of materials relating to a P2P loan agreement or to issue a certificate, without good cause, in violation of Article 24 (4);
23. A person who fails to submit a report, make a public disclosure, or give a prior notice, in violation of Article 25 (2);
24. A person who fails to give a prior notice, in violation of Article 25 (4);
25. A person who breaches the obligation to inspect and report the current situation of online information management under Article 30 (2);
26. A person who fails to take measures necessary for performing the liability for damage, in violation of Article 31 (4);
27. A person who fails to provide information, etc. about users to the Central Record Management Agency, in violation of Article 33 (1);
28. A person who fails to entrust matters necessary for the measures under Article 32 (3) to the Central Record Management Agency, in violation of Article 33 (2);
29. A person who fails to retain and manage materials relating to users or provides such materials to other person, in violation of Article 33 (3) or (4);
30. A person who fails to comply with a request to report, in violation of Article 43 (2) (including cases applicable mutatis mutandis in Articles 33 (5) and 41);
31. A person who fails to submit or make a report (including persons who submits or make a false report), in violation of Article 46;
32. A person who fails to comply with a request to submit materials, in violation of Article 47.
(3) The administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Financial Services Commission in accordance with Presidential Decree.