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ENFORCEMENT DECREE OF THE ACT ON ONLINE INVESTMENT-LINKED FINANCIAL BUSINESS AND PROTECTION OF USERS — 법갈피

영문법령 / ENFORCEMENT DECREE OF THE ACT ON ONLINE INVESTMENT-LINKED FINANCIAL BUSINESS AND PROTECTION OF USERS

ENFORCEMENT DECREE OF THE ACT ON ONLINE INVESTMENT-LINKED FINANCIAL BUSINESS AND PROTECTION OF USERS

대통령령타법개정시행 2025-06-02금융위원회 · 제35590호 · 공포 2025-06-02

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Decree is to provide for the matters delegated by the Act on Online Investment-Linked Financial Business and Protection of Users and the matters necessary for the enforcement thereof.

Article 2(Scope of specially related persons) #

(1) "Person in a special relationship, as prescribed by Presidential Decree" in subparagraph 10 (a) of Article 2 of the Act on Online Investment-Linked Financial Business and Protection of Users (hereinafter referred to as the "Act") means a person falling under any subparagraph of Article 3 (1) of the Enforcement Decree of the Act on Corporate Governance of Financial Companies.

(2) "A person prescribed by Presidential Decree" in subparagraph 10 (b) (ii) of Article 2 of the Act means any of the following persons:

1. A shareholder who has elected the representative director or a majority of the directors, either by himself or herself or under an agreement, contract, etc. with another shareholder;

2. A shareholder designated by the Financial Services Commission as one who has dominant control over decision-making on important matters, such as management strategies and organizational changes, or business execution.

(3) "The amount prescribed by Presidential Decree" in subparagraph 11 of Article 2 of the Act means an amount calculated by adding the amount erroneously reflected on an annual report to the sum of the paid-in capital, capital surplus, retained earnings, etc. on the balance sheet prescribed in Article 30 (2) of the Commercial Act or by subtracting such erroneously reflected amount from that sum.

CHAPTER II REGISTRATION OF ONLINE INVESTMENT-LINKED FINANCIA

Article 3(Requirements for registration) #

(1) "The amount prescribed by Presidential Decree" in Article 5 (1) 2 of the Act means the amount classified as follows:

1. Where the amount of a P2P loan defined in subparagraph 1 of Article 2 of the Act (hereinafter referred to as "P2P loan") is less than 30 billion won: 500 million won;

Article 4(Methods and Procedures for Registration) #

(1) An application for registration under Article 5 (2) of the Act shall contain the following information:

1. Trade name;

2. The domicile of the head office;

3. Matters regarding executive officers and the board of directors;

4. Business plans;

5. Matters regarding finance, including equity capital;

6. Matters regarding the amount of P2P loans calculated under Article 3 (2);

7. Matters regarding workforce, computer systems, and other physical facilities;

8.Matters regarding major shareholders under Article 5 (1) 7 of the Act (hereinafter referred to as "largest shareholder");

9. Matters concerning the system for managing conflicts of interest under Article 18 of the Act (hereinafter referred to as the "system for preventing conflicts of interest");

10. Other matters determined and publicly notified by the Financial Services Commission as necessary for the online investment-linked financial business.

(2) An application for registration under Article 5 (2) of the Act shall be accompanied by the following documents:

1. The articles of incorporation or other equivalent regulations;

2. Documents stating the location and name of the head office;

3. Resumes and certificates of work experience of executive officers;

4. Documents stating business methods;

5. Financial statements and supplementary schedules for the three most recent business years (a corporation in the process of incorporation shall be exempt from providing the same; and a corporation shall submit financial statements and supplementary schedules for the business years since its incorporation, if three business years have not passed since its incorporation);

6. Documents substantiating the status of workforce, physical facilities, etc.;

7.A document stating the name or title of the large shareholder as of the date of application for registration and the number of stocks he or she owns;

8. Documents substantiating that the large shareholder meets the requirements under Article 5 (1) 7 of the Act;

9. Documents substantiating that the system for preventing conflicts of interest has been established;

10. Other documents determined and publicly notified by the Financial Services Commission, which substantiate that the requirements necessary for registration of the online investment-linked financial business are met.

(3) Upon receiving an application for registration under Article 5 (2) of the Act, the Financial Services Commission shall verify and examine whether the details of the application are true and whether the requirements for registration under the subparagraphs of paragraph (1) of that Article are satisfied, and shall verify the corporation registration certificate through administrative data matching under Article 36 (1) of the Electronic Government Act.

(4) "Period given for amending defects in the registration application and other periods prescribed by Presidential Decree" in Article 5 (4) of the Act means any of the following periods:

1. A period required for receiving necessary materials from other agencies to verify whether the requirements under subparagraphs of Article 5 (1) of the Act are satisfied;

2. A period required for amending defects in a registration application, if such amendment has been requested under the latter part of Article 5 (3) of the Act;

3. Other periods similar to those under subparagraphs 1 and 2, as determined and publicly notified by the Financial Services Commission.

(5) Where the Financial Services Commission decides to register pursuant to Article 5 (3) of the Act, it shall issue a certificate of registration as determined and publicly notified by the Financial Services Commission.

(6) Details regarding the application for registration of an online investment-linked financial business entity under paragraphs (1) through (5) and the examination thereof, the form of the application for registration, the method of preparation thereof, etc. shall be determined and publicly notified by the Financial Services Commission.

Article 5(Requirements for Relaxed Maintenance of Registration) #

"Requirements relaxed in accordance with Presidential Decree" in Article 5 (7) of the Act means the following requirements:

1. In cases falling under Article 5 (1) 2 of the Act: At least 70/100 of the requirements classified under the subparagraphs of Article 3 (1) shall be maintained. In such cases, the relaxed requirements shall apply as of the end of each fiscal year; and an online investment-linked financial business entity that fails to meet the relaxed requirements as of the end of a specific fiscal year shall be deemed to meet the requirements for maintaining such requirements (limited to cases where the relaxed requirements are met as of the end of the following fiscal year) until the end of the following fiscal year;

2. In cases falling under Article 5 (1) 7 of the Act: The requirements classified as follows shall be continuously met:

(a) Where a large shareholder (limited to a large shareholder who has filed for registration after meeting the requirements under Article 5 (1) 7 of the Act; hereafter in this Article the same shall apply) falls under subparagraphs 1 through 3 or 5 (excluding item (d)) of Appendix 1, the applicant shall continue to meet the requirements of subparagraph 1 (e); in such cases, "for the past five years" in subparagraph 1 (e) 1) of that Table shall be construed as "the largest shareholder for the last five years", and "fine" as "fine of 500 million won";

(b) If the large shareholder is any entity referred to in subparagraph 4 or 5 (d) of Appendix 1, the applicant shall continue to meet only the requirements prescribed in subparagraph 1 (e) (i) and (iii) and 4 (d) of that Table; in such cases, "for the last five years" in subparagraph 1 (e) (i) of that Table shall be construed as "for the last five years for the largest shareholder"; "fine" as "fine of 500 million won"; "for the last three years" in subparagraph 4 (d) in that Table as "for the three years for the largest shareholder"; and "fact that it has been subject to criminal punishment equivalent to a fine or more" in that item as "fact that it has been subject to criminal punishment equivalent to a fine of 500 million won or more".

Article 11(Matters to be observed in relation to p2p investment on one's own account) #

(1) "Ratio prescribed by Presidential Decree" in Article 12 (4) 1 of the Act means 80/100.

(2) When calculating the balance of P2P investments (referring to P2P investments defined in subparagraph 1 of Article 2 of the Act; hereinafter the same shall apply) made on its own account pursuant to Article 12 (4) 2 of the Act, it shall be calculated in accordance with the following guidelines: <Amended on Jul. 30, 2024>

1. The balance of P2P investment shall be calculated by excluding the amount, etc., redeemed from the total amount of P2P investments on its own account.

2. The equity capital shall be calculated every six months as of the last day of a half year, and shall be applied for six months from the date two months after the date following the base date of calculation.

(3) "Matters prescribed by Presidential Decree" in Article 12 (4) 3 of the Act means the following. <Amended on Jul. 30, 2024>

1. Where the delinquency rate of P2P loans executed by an online investment-linked financial business entity with the P2P investments (hereinafter referred to as "delinquency rate") exceeds the delinquency rate determined and publicly notified by the Financial Services Commission within the scope of 30/100, the online investment-linked financial business entity shall not make a new P2P investment on its own account;

2. The total balance of the P2P investments made by the same borrower on his or her own account for the same borrower shall not exceed the ratio prescribed and publicly notified by the Financial Services Commission within 10/100 of the amount calculated by subtracting the reserve funds under Article 31 (4) of the Act from the equity capital under paragraph (2) 2.

3. An online investment linked financial business entity shall not provide a promise to users that it conducts P2P investments on its own account;

4. An online investment linked financial business entity shall not recover the principal and interest accrued from P2P investments made on its own account in preference to the principal and interest of other investors;

5. An online investment linked financial business entity shall not transfer its rights to receive principal and interest payments from P2P investments on its own account, in accordance with the proviso, with the exception of the subparagraphs, of Article 34 (1) of the Act;

6. With respect to P2P loans for which any of the following persons expresses his or her intention to make P2P investments, an online investment linked financial business entity shall not make P2P investments on its own account in excess of the ratio determined and publicly notified by the Financial Services Commission within the limit of 10/100 of the amount of P2P loans:

(a) A credit financial institution defined in subparagraph 4 of Article 2 of the Act on Registration of Credit Business and Protection of Finance Users (hereinafter referred to as "credit financial institution");

(b) A person determined and publicly notified by the Financial Services Commission (hereinafter referred to as "person equivalent to a credit financial institution"), who is recognized as substantially identical to a credit financial institution;

7. Other matters determined and publicly notified by the Financial Services Commission for maintaining the soundness of online investment-linked financial business entities, protecting users, etc.

(4) "Manner prescribed by Presidential Decree" in Article 12 (6) of the Act means publicly announcing the information under Article 10 (1) 3, 5, and 6 of the Act by comparing the products that have made a P2P investment on their own account and other products within five business days of the following month as of the end of each month.

Article 12(Other matters to be observed in relation to online investment-linked financial business) #

"Matters prescribed by Presidential Decree" in Article 12 (9) of the Act means the following:

1. It shall not require a borrower to demand any money other than loan interest and fees under Article 11 of the Act, in connection with P2P loans;

2. An online investment linked financial business entity shall not directly or indirectly give or receive property benefits to or from any investor (where an investor is a corporation or any other organization, including its executive officers and employees), in violation of the standards determined and publicly notified by the Financial Services Commission;

3. An online investment linked financial business entity shall neither promise in advance to make up for all or part of the losses incurred by an investor nor make up for such losses afterward;

4. An online investment linked financial business entity shall not guarantee any certain profits irrelevant to the outcome of investment to investors or provide such profits afterwards to investors;

5. An online investment linked financial business entity shall fulfill its management obligations to make sure that the delinquency rate does not exceed the delinquency rate determined and publicly notified by the Financial Services Commission;

6. An online investment linked financial business entity shall not enter into a P2P loan or a P2P investment agreement for products and users determined and publicly notified by the Financial Services Commission for the protection of users and sound trading practices;

7. An online investment-linked financial business entity shall neither make P2P loans through another online investment-linked financial business entity nor make P2P loans to a third party for the purpose of providing P2P loans, money, or other property benefits to itself or its large shareholders, executive officers, employees;

8. Other matters determined and publicly notified by the Financial Services Commission in consideration of the characteristics of P2P loans, P2P investment products, etc., which are necessary for the protection of users and sound trading practices.

Article 17(Formulation of internal control standards and appointment and dismissal of compliance officers) #

(1) The internal control standards under Article 17 (1) of the Act (hereinafter referred to as the "internal control standards") shall include the following matters:

1. Matters regarding division of work and organizational structure (including matters regarding an organization dedicated to performing business affairs related to internal control standards);

2. Matters regarding guidelines for the management of risks arising in the course of making a P2P investment on one's own account pursuant to the proviso, with the exception of the subparagraphs, of Article 12 (4) of the Act;

3. Matters regarding procedures to be observed by executive officers and employees in performing their duties;

4. Matters regarding the establishment of an efficient delivery system for disseminating information necessary for management decision-making;

5. Matters regarding procedures and methods for verifying whether executive officers and employees comply with the internal control standards and taking measures against executive officers and employees who violate the internal control standards;

6. Matters regarding procedures and standards for preventing violations of finance-related statutes by executive officers and employees;

7. Matters regarding the procedures for formulating and amending the internal control standards;

8. Matters regarding the identification, assessment, and management of conflicts of interest;

9. Other matters determined and publicly notified by the Financial Services Commission as necessary in relation to the internal control standards.

(2) Where an online investment-linked financial business entity formulates or modifies internal control standards or appoints or dismisses a compliance officer, it shall refer the case to the board of directors for resolution.

(3) The Financial Services Commission may recommend an online investment-linked financial business entity to modify its internal control standards, if necessary to prevent recurrence of violations of statutes or regulations.

(4) Details regarding internal control standards and compliance officers under paragraphs (1) through (3) shall be determined and publicly notified by the Financial Services Commission.

Article 18(Advertising) #

(1) "Advertising acts prescribed by Presidential Decree" in Article 19 (1) 6 of the Act means any of the following acts:

1. Providing a definitive judgment on false or uncertain matters, or making an advertisement (referring to an indication or advertisement under the Act on Fair Labeling and Advertising; hereinafter the same shall apply) which may be misunderstood as being certain;

2. Advertising that P2P investments and P2P loan instruments of another online investment-linked financial business entity are disadvantageous without clearly stating the subject matters and criteria for comparison or without objective grounds.

(2) "Act prescribed by Presidential Decree" in the proviso of subparagraph 3 of Article 19 of the Act means any of the following acts:

1. Continuing to advertise P2P investment or P2P loans again after the expiration of the period determined and publicly notified by the Financial Services Commission from the time when a customer who received an advertisement for P2P investment or P2P loans expressed his or her intention to refuse such advertisement;

2. Advertising other kinds of instruments; in such cases, the specific standards for other kinds of instruments shall be determined and publicly notified by the Financial Services Commission.

(3) "Matters prescribed by Presidential Decree" in the main clause of Article 19 (4) of the Act means the following matters:

1. Matters regarding the obligation of an online investment linkage financial business entity to provide sufficient information on P2P investment instruments;

2. Matters recommending investors to invest after verifying the information provided pursuant to subparagraph 1;

3. Matters regarding the standards for the imposition of fees;

4. Other matters determined and publicly notified by the Financial Services Commission as required to be included in advertisements.

(4) "Matters prescribed by Presidential Decree" in the proviso of Article 19 (4) of the Act means the following matters:

1. The n Name of P2P investment instruments and the trade name of the online investment-linked financial business entity (including the name of the online platform; hereinafter the same shall apply) shall be indicated together;

2. A P2P investment instrument shall clearly indicate that the P2P investment instrument is provided by an online investment-linked financial business entity;

3. The operator of the medium carrying an advertisement shall indicate the fact that the advertisement is about a P2P investment instrument and that P2P investment shall be made by entering into a contract with an online investment-linked financial business entity referred to in subparagraph 1.

(5) "Matters prescribed by Presidential Decree" in Article 19 (5) of the Act means the following matters:

1. The trade name of the online investment-linked financial business entity and the address of the website or mobile application program, etc. of the online platform;

2. Details of expenses additional to interests, if any;

3. Other matters determined and publicly notified by the Financial Services Commission as necessary for protecting borrowers.

(6) In advertising P2P investments and P2P loans, an online investment-linked financial business entity shall comply with the methods and procedures determined and publicly notified by the Financial Services Commission, such as obtaining prior confirmation from a compliance officer.

Article 19(Verification of information about borrowers) #

(1) "Documentary evidence prescribed by Presidential Decree" in Article 20 (1) of the Act means the following documents:

1. Where the borrower is an individual: The following documents:

(a) Any of the following documentary evidence of income:

(i) A withholding tax receipt on wage and salary income under Article 143 of the Income Tax Act;

(ii) A withholding tax receipt on business income under Article 144 of the Income Tax Act;

(iii) A certificate of income amount;

(iv) A copy of a bankbook for salary deposit;

(v) A pension certificate;

(b) Results of credit information inquiry [referring to credit information inquiry through a personal credit rating agency, a sole proprietor credit rating agency, or corporate credit rating agency (excluding corporate credit rating agencies engaged only in corporate information inquiry business), or a centralized credit information collection agency under the Credit Information Use and Protection Act; hereinafter the same shall apply] or a certificate of the balance of debts (limited to where the results of credit information inquiry have not been submitted);

(c) Documents evidencing the relationship of property rights and the value of property, such as a certificate of real estate registration right and a real estate lease contract (limited to P2P loans with security);

(d) Other documents to ascertain the current status of income, property, and liabilities;

2. Where the borrower is an individual: The following documents:

(a) A certificate of business registration, certificate of taxation by item of local tax, and certificate of local tax payment;

(b) An audit report (limited to corporations subject to external audit under Article 4 of the Act on External Audit of Stock Companies);

(2) "Details prescribed by Presidential Decree, such as the status of income, property, and liabilities of the borrower" in Article 20 (1) of the Act means the following:

1. The borrower's income and property situation;

2. The borrower's credit rating, personal credit score, or liability status;

3. Ability to repay P2P Loans;

4. The balance of P2P loans granted from the relevant online investment-linked financial business entity.

Article 24(Management of invested funds and repaid loans) #

(1) "Credible institution prescribed by Presidential Decree, such as a bank under the Banking Act" in Article 26 (1) of the Act means any of the following institutions:

1. Banks under the Banking Act (including persons deemed banks under Article 59 of that Act and banks established under the Act on Special Cases concerning the Establishment and Operation of Internet-Only Banks);

2. The Nonghyup Bank established under the Agricultural Cooperatives Act;

3. The Suhyup Bank established under the Fisheries Cooperatives Act;

4. The Korea Development Bank established under the Korea Development Bank Act;

5. Industrial Bank of Korea under the Industrial Bank of Korea Act;

6. Securities financial companies under the Financial Investment Services and Capital Markets Act;

7. Among mutual savings banks under the Mutual Savings Banks Act, mutual savings banks meeting the standards determined and publicly notified by the Financial Services Commission.

(2) "Cases prescribed by Presidential Decree" in Article 26 (3) of the Act means any of the following cases:

1. Where an online investment-linked financial business entity is merged or consolidated with another company and the investor's invested funds and the loans repaid from the borrower (hereinafter referred to as "invested fund, etc.") on deposit or in trust are transferred to the surviving or resulting corporation following merger or consolidation;

2. Where an online investment-linked financial business entity transfers the deposited or trusted invested funds, etc. after transferring its status as a party to a P2P loan agreement or P2P investment agreement in accordance with an order to transfer a contract under Article 34 (1) 5 or a business transfer contract;

3. Other cases determined and publicly notified by the Financial Services Commission as unlikely to undermine the protection of investors.

(3) "Cause or event specified by Presidential Decree occurs, such as the revocation of registration, the resolution on dissolution, or the declaration of bankruptcy" in Article 26 (4) of the Act means any of the following cases:

1. Where an online investment-linked financial business entity is subject to an order to suspend business or the registration of the online investment-linked financial business entity is revoked pursuant to Article 49 of the Act;

2. Where an online investment-linked financial business entity resolves to dissolve itself;

3. Where an online investment-linked financial business entity is declared bankrupt under the Debtor Rehabilitation and Bankruptcy Act;

4. Other cases determined and publicly notified by the Financial Services Commission, where any cause or event similar to the cause or event specified in subparagraphs 1 through 3 occurs.

(4) In any of the cases referred to in the subparagraphs of paragraph (3), an online investment-linked financial business entity shall, without delay, disclose the following matters to the public through the website, etc. of the relevant online investment-linked financial business entity, a depository institution under Article 26 (1) of the Act (hereinafter referred to as "depository institution"), and the Central Record Management Agency under Article 33 of the Act (hereinafter referred to as the "Central Record Management Agency"):

1. Grounds for preferential payment of invested funds, etc. on deposit or in trust;

2.Time and method of preferential payment;

3.Other matters related to preferential payment.

(5) Where an online investment-linked financial business entity or a depository institution preferentially pays invested funds, etc. to investors pursuant to Article 26 (4) of the Act, it may request the Central Record Management Agency to provide relevant data.

(6) A depository institution shall manage the invested funds, etc. on deposit or in trust in good faith, separately from its own property.

(7) Details regarding the management, payment, return, etc. of invested funds, etc. on deposit or in trust under paragraphs (1) through (6) shall be determined and publicly notified by the Financial Services Commission.

Article 27(Limits on loan and limits on investment) #

(1) "Limit prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 32 (1) of the Act means the smaller of either of the following amounts:

1. An amount equivalent to 7/100 of the balance of all P2P loans held by an online investment-linked financial business entity itself;

2. Seven billion won.

(2) "The amount prescribed by Presidential Decree" in Article 32 (1) 1 of the Act means the amount classified as follows:

1. The total balance of P2P loans held by an online investment-linked financial business entity: 30 billion won;

2. The amount of the P2P loan that an online investment linked financial business entity intends to make: 2.1 billion won.

(3) "Public institutions prescribed by Presidential Decree" in Article 32 (1) 2 of the Act means the following public institutions:

1. Any public institution under the Act on the Management of Public Institutions;

2. A local government-directly operated enterprise, local government-invested public corporation, or local public agency established under the Local Public Enterprises Act.

(4) "Regional development project, a social infrastructure project, or any other project prescribed by Presidential Decree" in Article 32 (1) 2 of the Act means any of the following projects:

1. A waterworks project;

2. An industrial waterworks project;

3. A railroad project (including an urban railroad project);

4. A public transportation project;

5. A gas project;

6. A local road project;

7. A sewerage project;

8. A cleaning and sanitation project;

9. A housing project;

10. A medical service project;

11.A burial and cemetery project;

12. A parking lot project;

13. A land development project;

14. A market project;

15. A tourism project;

16. An infrastructure project under subparagraph 3 of Article 2 of the Act on Public-Private Partnerships in Infrastructure;

17. Other projects deemed necessary by the Financial Services Commission as necessary for regional development, social infrastructure, etc.

(5) "Cases prescribed by Presidential Decree" in Article 32 (1) 3 of the Act means cases where the Financial Services Commission deems that there are unavoidable reasons, such as rapid changes in economic conditions or the purpose of stabilizing people's livelihood.

(6) The amount that an investor may make P2P investments through an online investment-linked financial business entity pursuant to the main clause of Article 32 (2) of the Act shall be classified as follows: <Amended on Jul. 30, 2024>

1. In cases of a person whose total amount of interest income and dividend income under subparagraph 1 (a) and (b) of Article 4 of the Income Tax Act exceeds the standard amount of global taxation on interest income, etc. defined in Article 14 (3) 6 of that Act or an individual investor whose total amount of business income under Article 19 (2) of that Act and wage and salary income under Article 20 (2) of that Act during the immediately preceding taxable period exceeds 100 million won: Not more than the amount classified as follows:

(a) The total amount of P2P investments through an online investment-linked financial business entity (referring to the balance excluding the amount repaid, etc.; hereafter in this Article the same shall apply): The amount determined and publicly notified by the Financial Services Commission in consideration of the types, etc. of P2P investment instruments within the scope of 100 million won;

(b) The amount of P2P investment in the same borrower: 20 million won; provided, 40 million won shall be applied to a borrower who meets all of the following requirements:

i) At least 10/100 of the capital shall be invested by the State, a local government, or an institution referred to in the subparagraphs of paragraph (3);

ii) Where a P2P loan is extended for the amount directly necessary for performing the infrastructure project referred to in paragraph (4) 16.

2. In cases of an individual investor who does not fall under subparagraph 1: within the following amounts;

(a) The aggregated amount of P2P investments made through an online investment-linked financial business entity: The amount determined and publicly notified by the Financial Services Commission within the scope of 50 million won in consideration of the types of P2P investment instruments, etc.;

(b) The amount of P2P investment in the same borrower: 5 million won; provided, 30 million won shall be applied to a borrower who meets all of the requirements under subparagraph 1 (b) ( ⅰ ) and ( ⅱ ).

(7) "Individual professional investor prescribed by Presidential Decree" in the proviso of Article 32 (2) of the Act means a professional investor under Article 10 (3) 17 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "professional investor").

(8) "Necessary measures prescribed by Presidential Decree" in Article 32 (3) of the Act means the following measures:

1. An online investment-linked financial business entity shall confirm that the amount of P2P loans to a borrower does not exceed the limit under Article 32 (1) of the Act, and shall maintain and manage it so as not to exceed the limit;

2. An online investment-linked financial business entity shall confirm and manage the amount of P2P investment by an investor through the Central Record Management Agency prior to the P2P investment by the investor so that the amount of P2P investment by the investor does not exceed the amount prescribed in Article 32 (2) of the Act.

Article 28(Central record management agency) #

(1) "Materials prescribed by Presidential Decree, including the details of the application, information about the user" in Article 33 (1) of the Act means the following materials:

1. Materials containing the following information on borrowers or investors;

(a) The name of the borrower or investor (in cases of a corporation, referring to its trade name);

(b) Information under subparagraph 2-1 (a) (ii) of Article 2 of the Credit Information Use and Protection Act (hereinafter referred to as "personal identification number"); provided, in cases of a corporation, it means the information under the subparagraphs of Article 2 (4) of the Enforcement Decree of the same Act;

(i) A corporate investor under the proviso of Article 32 (2) of the Act (hereinafter referred to as "corporate investor") and a professional investor;

(ii) An investor under the provisions, with the exception of its items, of Article 27 (6) 1;

2. Materials containing the following information on the conclusion, etc. of P2P loan agreements or P2P investment agreements:

(a) The amount of P2P loans or P2P investment applied by a borrower or investor, the date and time of application, and other information on the application for P2P loans or P2P investment;

(b) Information on the amount of the P2P investment for which a P2P investment agreement is executed with an investor, the period of the P2P investment, the P2P investment instruments, and other information on the execution of the P2P investment agreement or the P2P investment;

(c) The amount of P2P loans for which P2P loan agreements have been executed with borrowers, the period of such P2P loans, interest rates, P2P loan products, and other information on the execution of P2P loan agreements or P2P loans;

(d) Information on the repayment of the principal and interest of P2P loans by borrowers;

(e) Information on the transfer and acquisition of the rights to receive principal and interest payments by an investor;

3. Data incidental to the data referred to in subparagraphs 1 and 2;

4. Where the data referred to in subparagraphs 1 through 3 are changed, data on the details of such change;

5. Other data determined and publicly notified by the Financial Services Commission as those similar to the data specified in subparagraphs 1 through 4.

(2) The Central Recording Keeping Agency shall perform the following business affairs in relation to the data provided under Article 33 (1) of the Act:

1. Business affairs under Article 33 of the Act;

2. Concentration and management of information on online investment-linked finance;

3. Management of limits on P2P investment by investors through online investment-linked financial business entities;

4. Business affairs incidental to those referred to in subparagraphs 1 through 3.

(3) The Central Recording Keeping Agency shall be an institution recognized by the Financial Services Commission as an institution that meets the following requirements:

1. It shall have human resources, computer systems, and other physical facilities sufficient to perform the business affairs referred to in the subparagraphs of paragraph (2) (hereinafter referred to as "central records management affairs");

2. The articles of incorporation and business regulations shall conform to statutes and regulations and shall be sufficient to perform central records management business affairs;

3. Appropriate internal control standards and methods of conducting business affairs shall be prepared so that the central records management business affairs can be performed in an accurate and stable manner;

4. The C Central Recording Keeping Agency shall meet other requirements determined and publicly notified by the Financial Services Commission as necessary for performing its business affairs.

(4) "Manner prescribed by Presidential Decree" in Article 33 (3) of the Act means a manner that meets all of the following requirements:

1. The data referred to in paragraph (1) shall meet all the requirements prescribed in the subparagraphs of Article 5 (1) of the Framework Act on Electronic Documents and Transactions;

2. The Central Record Management Agency shall keep the data referred to in paragraph (1) using discs, magnetic tapes, and other electronic information processing systems for 10 years from the date it is provided with such data.

(5) "Cases prescribed by Presidential Decree" in the proviso of Article 33 (4) of the Act means the following cases:

1.Where relevant data are provided upon request under Article 24 (5);

2. In any of the following cases, where relevant data are provided to the minimum extent necessary for the purpose of use thereof:

(a) Where it is necessary for the investigation of a crime, institution and maintenance of a prosecution;

(b) Where it is necessary for court proceedings;

(c) Where it is necessary to provide such data to a foreign financial supervisory authority to implement a treaty or any other international agreement, etc.;

(d) Where it is necessary to investigate violations of statutes or regulations, such as violation of duty to manage investment limits;

3. Other cases determined and publicly notified by the Financial Services Commission as unlikely to undermine the protection of users or the rights and interests of the subjects of personal information.

Article 29(Transfer and Acquisition of Rights to Receive Principal and Interest Payments) #

(1) "Person prescribed by Presidential Decree" in Article 34 (1) 2 of the Act means any of the following persons:

1. Corporations excluding online investment-linked financial business entities;

2. An individual investor under the provisions, with the exception of the items, of Article 27 (6) 1;

3. An individual investor referred to in the provisions, with the exception of the items, of Article 27 (6) 2, who has entered into a P2P investment agreement at least five times over the immediately preceding three years.

(2) "Necessary measures prescribed by Presidential Decree" in Article 34 (3) of the Act means the following measures:

1. Ensuring that a transfer or acquisition contract including information falling under the subparagraph of Article 22 (1) of the Act is concluded between the transferor and the transferee;

2. Explaining the information falling under the subparagraphs of Article 22 (1) of the Act and the risk of transfer or acquisition of the rights to receive principal and interest payments, and confirming that the intended transferor and the intended transferee have understood the relevant details by the method prescribed in Article 22 (3) of the Act;

3. Ascertaining whether there is any change in the information provided to investors under the subparagraphs of Article 22 (1) of the Act before the contract under subparagraph 1 is concluded and providing the relevant information to the intended transferee;

4. The online investment-linked financial business entity shall verify the following information on the intended transferee before the contract referred to in subparagraph 1 is concluded, and shall provide the relevant information to the intended transferor and the intended transferee before the contract is concluded:

(a) Whether the intended transferee falls under the subparagraphs of Article 34 (1) of the Act;

(b) Whether the intended transferee intends to acquire the rights to receive principal and interest payments within the extent not exceeding the investment limit under Article 32 (2) or 35 (1) of the Act;

5. Where a transfer or acquisition contract is concluded, documents under Article 23 (1) of the Act shall be delivered to the transferee.

Article 30(P2P Investment by financial institutions) #

(1) "Person prescribed by Presidential Decree" in Article 35 (1) of the Act means corporate investors and professional investors.

(2) "Limit prescribed by Presidential Decree" in Article 35 (1) of the Act means the limit classified as follows:

1. The investment limit of a credit financial institution (including a person equivalent to a credit financial institution): The limit classified as follows:

(a) P2P investment instruments stipulated in Article 20 (1) 1 or P2P investment instruments for P2P loans secured by real estate: 20/100 of the amount of P2P loans offered;

(b) P2P investment instruments other than those referred to in item (a): 40/100 of the amount of P2P loans offered;

2. The investment limit of a person falling under paragraph (1): 40/100 of the amount of P2P loans offered.

(3) The investment limit under paragraph (2) 1 shall be applied by aggregating the amounts of P2P investments made by a credit financial institution and a person equivalent to a credit financial institution.

(4) "Necessary measures prescribed by Presidential Decree" in Article 35 (2) of the Act means the following measures:

1. It shall be verified whether the relevant investor is a credit financial institution or an investor referred to in paragraph (1) (hereinafter referred to as "credit financial institution, etc.") prior to an investor's P2P investment;

2. It shall be verified that an investor that constitutes a credit financial institution, etc. makes a P2P investment within the extent not exceeding the limit stipulated in the subparagraphs of paragraph (2);

3. An online investment-linked business entity shall receive confirmation from an investor that the following matters have been verified by the means stipulated in Article 22 (3) of the Act:

(a) Matters regarding whether an investor is a credit financial institution, etc.;

(b) Matters regarding whether the matters referred to in the subparagraphs of paragraph (2) are confirmed in cases where the investor is a credit financial institution, etc.

(5) An online investment-linked financial business entity shall comply with the following matters if a credit financial institution, etc. makes P2P investments:

1. Information referred to in the subparagraphs of Article 22 (1) of the Act shall not be provided to a credit financial institution, etc. in advance of other investors, in cases of providing the relevant information;

2. No credit financial institution, etc. shall be given a preferential treatment without good cause in connection with the terms and conditions of P2P investment, such as fees, and P2P investment business affairs;

3. An online investment-linked financial business entity shall directly handle matters regarding the registration and modification of credit information under Article 18 of the Credit Information Use and Protection Act;

4. An online investment-linked financial business entity shall comply with other matters publicly notified by the Financial Services Commission as necessary for the protection of users and sound trading practices.

(6) Details regarding P2P investment by credit financial institutions, etc. under paragraphs (1) through (5) shall be determined and publicly notified by the Financial Services Commission.

Article 35(Entrustment of authority) #

(1) The Financial Services Commission shall entrust the following authority to the Governor of the Financial Supervisory Service pursuant to Article 48 (1) of the Act:

1. Authority to examine the requirements for registration of online investment-linked financial business under Article 5 (1) of the Act;

2. Authority to request correction of defects in an application for registration under the latter part of Article 5 (3) of the Act;

3. Authority to accept reports on registration of modification under the main clause of Article 7 (1) of the Act;

4. Authority to accept reports on concurrent business under Article 14 (1) of the Act;

5. Authority to accept reports on incidental business affairs under the main clause, with the exception of the subparagraphs, of Article 14 (2) of the Act of the Act;

6. Authority to examine whether it falls under the grounds for ordering restrictions on or correction of the operation of incidental business affairs under Article 14 (3) of the Act;

7. Authority to accept reports on standard terms and conditions of the Online Investment-Linked Finance Association under Article 25 (4) of the Act (referring to the Online Investment-Linked Finance Association under Article 37 of the Act; hereinafter referred to as the "Association") and the authority to review whether the relevant standard terms and conditions are subject to a modification order under the main clause of paragraph (7) of that Article;

8. Authority to request an online investment-linked financial business entity to report on its business affairs, status of its property, etc. under Article 43 (2) of the Act;

9. Authority to take measures under subparagraphs 2, 3, and 6 of Article 45 of the Act;

10. Authority to take measures under Article 34 (1) 1 and 2, among the authority to take measures under subparagraph 7 of Article 45 of the Act;

11. Authority to accept business reports submitted by online investment-linked financial business entities under Article 46 of the Act;

12. Authority to request an online investment-linked financial business entity or its major shareholders, executive officers, and employees to submit data under Article 47 of the Act.

(2) The Financial Services Commission shall entrust the following authority to the head of the Association pursuant to Article 48 (2) of the Act:

1. Authority to accept reports on the establishment and amendment of financial terms and conditions of an online investment-linked financial business entity under Article 25 (2) of the Act and to examine whether the relevant financial terms and conditions fall under paragraph (7) of that Article;

2. Authority to accept reports on the results of fact-finding surveys on information management by online investment-linked financial business entities under Article 30 (2) of the Act.

(3) The Governor of the Financial Supervisory Service and the head of the Association shall report the details of business affairs handled in entrustment under paragraphs (1) and (2) to the Financial Services Commission every six months; provided, if the Financial Service Commission determines and publicly notifies reporting frequencies differently, he or she shall file reports accordingly.

Article 36(Management of sensitive information and personal identification numbers) #

(1) The Financial Services Commission (including a person entrusted with the authority of the Financial Services Commission pursuant to Article 48 of the Act) may manage information corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing personal identification numbers under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act, if it is inevitable to perform the following business affairs; provided, in cases of business affairs under subparagraphs 5 and 6, information corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act shall be excluded herefrom: <Amended on Dec. 20, 2022>

1. Business affairs regarding registration under Article 5 of the Act;

2. Business affairs regarding the registration of changes under Article 7 of the Act;

3. Business affairs regarding supervision under Articles 41 and 43 of the Act;

4. Business affairs regarding measures and dispositions under Articles 45 and 49 of the Act;

5. Business affairs regarding requests for submission of data under Article 47 of the Act;

6. Business affairs regarding the imposition, collection, etc. of penalty surcharges under Articles 50 through 54 of the Act.

(2) The Governor of the Financial Supervisory Service may manage data containing information corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and personal identification numbers under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act, if unavoidable to perform the following business affairs:

9. Business affairs regarding inspection under Article 44 (1) of the Act;

2. Business affairs regarding requests for submission of data, attendance, and statement of opinions under Article 44 (3) and (4) of the Act.

(3) The Central Recording Keeping Agency may manage data containing personal identification numbers, if it is inevitable to perform the following business affairs:

1. Business affairs regarding the management of P2P loan limits and P2P investment limits entrusted by online investment-linked financial business entities pursuant to Article 33 (2) of the Act;

2. Business affairs regarding the retention and management of data under Article 33 (3) of the Act;

3. Business affairs regarding the provision of data under the proviso of Article 33 (4) of the Act.

(4) An online investment-linked financial business entity (including a person entrusted with the authority of an online investment-linked financial business entity pursuant to Article 15 of the Act) may manage data containing personal identification numbers, if unavoidable to perform the following business affairs:

1. Business affairs regarding verifying information on borrowers under Article 20 of the Act;

2. Business affairs regarding verifying information on investors under Article 21 of the Act;

3. Business affairs regarding the conclusion, etc. of P2P investment agreements under Article 23 of the Act;

4. Business affairs regarding the conclusion, etc. of P2P loan agreements under Article 24 of the Act;

5. Business affairs regarding the management of invested funds, etc. under Article 26 of the Act;

6. Business affairs regarding the management of P2P loans, etc. under Article 27 (1) through (3) of the Act;

7. Business affairs regarding the collection of P2P loans under Article 29 of the Act;

8. Business affairs regarding the verification of loan limits and investment limits under Article 32 of the Act;

9. Business affairs regarding the transfer and acquisition of rights to receive principal and interest payments under Article 34 of the Act.

[Title Amended on Dec. 20, 2022]

ENFORCEMENT DECREE OF THE ACT ON ONLINE INVESTMENT-LINKED FINANCIAL BUSINESS AND PROTECTION OF USERS

Article 1(Purpose) #

Article 2(Scope of specially related persons) #

Article 3(Requirements for registration) #

Article 4(Methods and Procedures for Registration) #

Article 5(Requirements for Relaxed Maintenance of Registration) #

Article 6(Requirements for Qualification of Executive Officers) #

Article 7(Registration of changes) #

Article 8(Restrictions on trade names) #

Article 9(Public disclosure of information about online investment-linked financial business entities) #

Article 10(Collection of fees by online investment-linked financial business entities) #

Article 11(Matters to be observed in relation to p2p investment on one's own account) #

Article 12(Other matters to be observed in relation to online investment-linked financial business) #

Article 13(Business affairs) #

Article 14(Reporting on incidental business affairs) #

Article 15(Scope of business affairs prohibited from being entrusted) #

Article 16(Classification of accounting) #

Article 17(Formulation of internal control standards and appointment and dismissal of compliance officers) #

Article 18(Advertising) #

Article 19(Verification of information about borrowers) #

Article 20(Information to be provided to investors) #

Article 21(Conclusion of P2P investment agreements) #

Article 22(Conclusion of P2P investment agreements) #

Article 23(Establishment and amendment of terms and conditions) #

Article 24(Management of invested funds and repaid loans) #

Article 25(Preparation of Procedures for Addressing Liquidation Business Affairs) #

Article 26(Estimation of damages) #

Article 27(Limits on loan and limits on investment) #

Article 28(Central record management agency) #

Article 29(Transfer and Acquisition of Rights to Receive Principal and Interest Payments) #

Article 30(P2P Investment by financial institutions) #

Article 31(Establishment of online investment-linked finance association) #

Article 32(Business affairs of online investment-linked finance association) #

Article 33(Articles of association of online investment linked finance association) #

Article 34(Financial services commission's authority to issue orders to take measures) #

Article 35(Entrustment of authority) #

Article 36(Management of sensitive information and personal identification numbers) #

Article 37(Suspension of business) #

Article 38(Imposition and Payment of Penalty Surcharges) #

Article 39(Extensions of Payment Deadline for Penalty Surcharges and Payment by Installment) #

Article 40(Additional Charges) #

Article 41(Entrustment of Disposition on Delinquency) #

Article 42(Interest rates on additional amount on refund) #

Article 43(Administrative fines) #