Refunds for Voice Phishing Losses Available Even for Small Accounts Under 10,000 Won

Financial Authorities Announce Legislative Notice for Amendment of 'Telecommunication Fraud Damage Compensation Act Enforcement Decree' to Eradicate Voice Phishing
Task Forces on Legal Systems, FDS Advancement, Promotion, and Insurance Development to Be Formed and Operated by Year-End

[Asia Economy Reporter Jo Gang-wook] From now on, even small accounts with balances under 10,000 won will be eligible for compensation claims for damages caused by telecommunications fraud. In addition, the voice phishing phone number suspension report form will be included in the official forms, making it easier for consumers to file complaints.

The Financial Services Commission and the Financial Supervisory Service announced on the 16th that they will publicly announce the amendment to the "Telecommunications Fraud Damage Compensation Act Enforcement Decree" on the 17th.

This is a follow-up measure to the "Comprehensive Plan to Eradicate Voice Phishing" announced last month by related ministries including the Financial Services Commission, Ministry of Science and ICT, and the National Police Agency.

According to the amendment, the phone number suspension report form will be included on the next page of the damage compensation application form and integrated as an official form.

Previously, the phone number suspension report form, operated as a supervisory administrative action, was separated from the official damage compensation application form, resulting in a low reporting rate by users and limitations in suspending voice phishing phone numbers.

The damage compensation procedure will also be refined. The amendment stipulates that for small amounts (up to 30,000 won as determined by presidential decree), the debt extinction procedure will not be initiated; however, if the user applies separately within 30 days, the debt extinction procedure may be initiated.

First, the initiation threshold was set at 10,000 won, considering the costs of initiating the debt extinction procedure such as postage fees (approximately 11,000 won).

It was clarified that users can request the initiation of the debt extinction procedure if they wish to seek compensation for small damages. Accordingly, customers will be informed that even small accounts with balances under 10,000 won can receive compensation if they apply separately within 30 days.

It was also clarified that if the debt extinction procedure is not initiated, the payment suspension and electronic financial transaction restrictions will be lifted after three months. Previously, there was insufficient basis to lift payment suspension and electronic financial transaction restrictions for small accounts where the debt extinction procedure was not initiated. With this improvement, small accounts under 10,000 won will have their payment suspension and electronic financial transaction restrictions lifted after a similar period (three months) as accounts where other debt extinction procedures have been initiated.

Along with this, financial authorities plan to form and operate task forces related to "legal system, FDS advancement, publicity, and insurance development" by the end of the year to enforce the comprehensive plan to eradicate voice phishing.

The Financial Services Commission plans to operate the task forces intensively until the end of the year to produce results and utilize them for institutional improvements and enforcement strengthening. In addition, they will faithfully implement voice phishing eradication measures in the telecommunications and investigation sectors through strengthened cooperation and task forces among related ministries.