Used Car Transactions Between Individuals with Credit Cards... 90% Refund of Non-Occurrence Insurance Accident Benefits

Financial Services Commission Designates 9 New Innovative Financial Services

[Asia Economy Reporter Kim Hyo-jin] From now on, credit card payments will be possible for used car transactions between individuals. In addition, contract holders can receive a refund of 90% of the profits from no insurance claims.

The Financial Services Commission announced on the 20th that it has newly designated a total of nine innovative financial services, including these contents. Innovative financial services benefit from the financial regulatory sandbox, a pilot operation system for financial services introduced under the Financial Innovation Support Special Act. With this new designation, a total of 86 innovative financial services have been designated since the system was implemented in April last year.

The FSC granted regulatory exceptions so that individuals, not businesses, can become one-time credit card merchants, collect used car transaction payments made by credit card, and allow sellers and buyers to share a single usage fee.

Accordingly, KB Kookmin Card plans to launch a service in August that allows credit card payments through the secure payment function of the used car payment platform in used car transactions between individuals. The FSC expects this service to resolve information asymmetry in the process of used car transactions between individuals and improve payment safety and convenience.

The FSC also granted exceptions to allow more than 90% of the profits from non-dividend hospitalization insurance contracts or no insurance claims to be refunded to contract holders. Currently, non-dividend insurance contracts handle insurance profits and losses as shareholder equity. Accordingly, Mirae Asset Life Insurance will launch a health insurance product with post-premium settlement in July that returns profits from no insurance claims to subscribers.

Samsung Life Insurance plans to introduce a group insurance service in April that guarantees injury and death for workers at small workplaces with fewer than five employees, based on the exception allowing group insurance products to be developed without prior filing of basic documents for companies and workplaces with fewer than five employees.

The FSC also allowed card companies to perform some of the rental business operators’ tasks entrusted through rental brokerage platforms. Shinhan Card plans to operate a rental brokerage platform in September and provide services entrusted by small and medium rental operators registered on the platform, such as rental fee deposit management and delinquency management.

IBK Industrial Bank is preparing a service to verify real names through a separate procedure even when customers visit bank counters without identification cards. The service is scheduled to be implemented in August. Customers will authenticate themselves through the bank application and verify the validity of previously submitted copies of identification cards to confirm their identity.

KB Securities and Hanwha Investment & Securities will launch services that verify real names using facial recognition technology instead of video calls when opening accounts non-face-to-face. These services are scheduled to be implemented in August and July, respectively. CB Financial Solutions will provide a service from August that compares and subscribes to deposit and savings products, recommending additional or distributed deposits to bank deposit products when the depositor protection limit of each financial company is not exhausted.