Change in Safe Block Service Application for Credit Transactions:
New Credit Card Issuance Now Optional
Family Members Can Also Apply on Behalf of Individuals
On May 16, the Financial Services Commission announced that it will significantly improve the convenience of its Safe Block Service for credit transactions and non-face-to-face account openings.
The Safe Block Service for credit transactions is a service that blocks non-face-to-face credit transactions under an individual's name, such as unsecured loans, card loans, credit card issuance, installment finance, and loans secured by savings or deposits. The Safe Block Service for non-face-to-face account openings blocks the opening of accounts through non-face-to-face channels to prevent damages caused by the creation of fraudulent bank accounts.
Going forward, when applying for the Safe Block Service for credit transactions, the blocking of new credit card issuance will be changed from a mandatory to an optional item. Previously, when subscribing to the Safe Block Service for credit transactions, all credit transactions?including unsecured loans, secured loans, new credit card issuance, and card loans?were blocked at once. This caused inconvenience for many consumers, as the issuance of new credit cards, which are widely used in daily life, was also restricted. With this improvement, consumers will now be able to directly choose (opt out) whether to block new credit card issuance.
In the future, not only the individual but also family members will be able to apply for and lift the Safe Block Service (for credit transactions and non-face-to-face account openings). Currently, the Safe Block Service can be applied for by visiting the branch of a financial institution or through a mobile banking app. However, elderly individuals or those with limited mobility often face difficulties applying, as they may not be able to visit branches in person or may not be familiar with mobile apps. As a result, there have been numerous requests to allow authorized family members to apply for or lift the service on behalf of the individual. With the expansion of eligible applicants to include authorized family members, it is expected that the service will become much easier to use.
In addition, mutual finance institutions such as Nonghyup Cooperatives will also enable non-face-to-face applications through mobile apps. This will improve service accessibility, allowing consumers who primarily use mutual finance institutions to conveniently apply via mobile devices.
A representative from the Financial Services Commission stated, "With these regulatory improvements, we expect that more consumers will be able to use the Safe Block Service to prevent voice phishing damages," and added, "Going forward, the financial authorities will continue to monitor and supplement the operation of the service in cooperation with the financial sector."
As of May 12, the cumulative number of subscribers to the Safe Block Service for credit transactions and non-face-to-face account openings reached 2.55 million and 2.04 million, respectively. The Financial Services Commission explained that the number of subscribers to the Safe Block Service for credit transactions and non-face-to-face account openings has increased significantly following the SK Telecom hacking incident.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
