(1) Reasons for Proposal

With an increasing number of digital and contactless services lately, this Partial Amendment aims to protect consumers by allowing them to clearly know transaction conditions for payment amount, conversion to paid subscription, payment schedule, termination, and refund when making payments regularly with credit cards or other methods to use subscription services, reasonably update market entry regulations when banks and others intend to do credit card business concurrently by comprehensively considering changing financial environments with the introduction of Internet-only banks and fairness with other applicable laws, and improve and supplement some shortcomings observed in the enforcement of the procedure related to specialized credit finance companies and others.

(2) Major Provisions

A. Rationalize major shareholder requirements for concurrent credit card companies (Article 6-3)

Prepare the basis that applies the major shareholder requirement, which is more alleviated than the one that applies when approval is sought for credit card business as the only business, when banks and other financial firms would like to obtain approval for doing credit card business concurrently.

B. Clarify transaction conditions for credit cards and others by merchants through the agency for settlements (Article 7-4 newly inserted)

Prepare the basis that requires the agency for settlements to request merchants, for which the agency provides regular payment services, to clearly notify transaction conditions (transaction details, amount, payment date, conversion to paid subscription, cancellation/termination conditions, refund conditions, etc.) to credit card members, reflects such transaction conditions in terms and conditions as well as contracts, and demands correction for non-compliance or the suspension or termination of settlement agency contracts if merchants do not comply with the foregoing.

C. Extend the reporting period if the largest shareholder is changed (Article 19-21)

Extend the deadline by which specialized credit finance business companies must report any change in their largest shareholder to Financial Services Commission from 7 days to 14 days like other applicable laws.

D. Prepare the basis to outsource work including the registration of value-added network providers (Article 23-3)

Outsource review work on registration and cancellation requirements for value-added network providers to the Financial Supervisory Service, which is performing some outsourced work related to the registration of value-added network providers.