Assemblyman Kim Byung-wook: "Rapid Consumer Support Is Needed"
[Asia Economy Reporter Park Sun-mi] Starting next year, it is expected that relief will be possible for 'mistaken remittances' made by errors such as entering the wrong account number or incorrect amount. The Mistaken Remittance Return Support Act, which provides relief for mistaken remittances, has passed the critical legislative hurdle.
According to political circles on the 3rd, the day before, Kim Byung-wook, a member of the Democratic Party of Korea, who proposed the 'Mistaken Remittance Return Support Act (Depositor Protection Act)' to make it easier to recover money mistakenly deposited, passed the Legislation and Judiciary Committee's subcommittee.
This bill was merged and reviewed with bills jointly proposed by Kim Byung-wook and Sung Il-jong, the floor leaders of both ruling and opposition parties, along with Yang Kyung-sook and Yang Jung-sook. The main contents include ▲adding the task of supporting the return of mistaken remittance damages to the scope of work of the Korea Deposit Insurance Corporation (KDIC) ▲establishing a mistaken remittance support account ▲providing financial resources for incidental costs related to purchasing and recovering unjust enrichment return claims related to mistaken remittances ▲allowing financial institutions handling fund transfers, central administrative agencies, and telecommunications service providers to provide reasons for refusal of return and personal information of mistaken remittance recipients, among others.
Currently, if the recipient returns the money when the account number is entered incorrectly or an amount larger than intended is deposited, there is no problem, but if not, complicated procedures such as lawsuits are required. Often, the recipient cannot be contacted. The amendment allows KDIC to obtain the recipient's mobile phone number and contact them so that the mistaken remitter can recover the money. When the mistaken remitter applies for return support, KDIC purchases the unjust enrichment return claim, encourages voluntary return, and settles afterward to return the money.
However, KDIC’s scope of mistaken remittance return support is limited to court payment orders and does not include lawsuits. Additionally, after purchasing the unjust enrichment return claim, if disputes arise, a contract cancellation right is added to provide grounds for canceling the contract in cases where disputes existed between the parties exchanging money, making it difficult to consider it a simple mistaken remittance.
Kim Byung-wook, chairman of the first subcommittee of the Legislation and Judiciary Committee, explained the background of the bill, saying, “Unlike other countries, South Korea has rapid and active non-face-to-face transactions, so mistaken remittances are increasing every year, and half of these are not recovered, making prompt consumer support necessary.”
He added, “As this is a livelihood bill that can quickly and affordably protect financial consumers from the risks of mistaken remittances that anyone can be exposed to, the members of the Legislation and Judiciary Committee’s subcommittee discussed it with one heart and mind, enabling its swift passage. I will continue to do my best to process livelihood bills that the public can directly feel in the future.”
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