Electronic Financial Business Revenue Surpasses 10 Trillion Won for the First Time.. Authorities Strengthen On-Site Inspections for Companies Not Complying with Management Guidance Standards

[Financial News] It was recorded that the number of registered electronic financial companies exceeded 200 last year due to the expansion of electronic payment services such as Payment Gateway (PG) and prepaid transactions. The revenue of the electronic financial business surpassed 10 trillion won for the first time.
The Financial Supervisory Service announced on the 27th that according to the '2024 Electronic Financial Business Performance', the number of registered electronic financial companies as of the end of December last year was 207, an increase of 19 compared to the end of the previous year (188).
Based on registered business types, PG has the most with 162, followed by 92 prepaid electronic payment instrument issuers, 24 debit electronic payment instrument issuers, 44 escrow payment deposit businesses, and 16 electronic bill presentment and payment businesses (EBPP).
Among the registered electronic financial companies excluding financial companies last year, the revenue of 188 companies was 10.4 trillion won, an increase of 8.3% compared to the previous year. This is the first time that the revenue of the electronic financial business has exceeded 10 trillion won.
The gross profit, which is the revenue minus the cost of sales, was 3.3 trillion won, an increase of 3.1% compared to the previous year.
At the end of last year, the balance of PG and prepaid was 14.4 trillion won (PG 9.9 trillion won, prepaid 4.5 trillion won), an increase of 12.5% compared to the end of the previous year. While the PG balance decreased by 200 billion won, the prepaid balance increased by 1.8 trillion won.
Last year, there were 28 electronic financial companies that did not comply with the management guidance standards under the Electronic Financial Transactions Act, maintaining the same level as the end of 2023 (28 companies).
The Financial Supervisory Service explained, "As competition in the electronic financial business market intensifies, the financial soundness of small electronic financial companies has deteriorated," adding, "Most of the companies have insignificant revenue or PG and prepaid balances." However, they are pursuing the resolution of non-compliance with management guidance standards through their own management improvement plans, and especially since prepaid funds are managed separately under the Electronic Financial Transactions Act, the possibility of user damage is small.
The Financial Supervisory Service will strengthen on-site inspections for companies not complying with management guidance standards, expand management and supervision efforts such as requesting management improvement plans and holding interviews with executives, and disclose major financial information of electronic financial companies semi-annually.
In addition, in preparation for the amendment of the Electronic Financial Transactions Act pending in the National Assembly, the Financial Supervisory Service plans to prepare guidelines for the external management of PG settlement funds, including the scope of PG settlement funds, external management methods and procedures, and payment in case of emergency, by next month.  

sjmary@fnnews.com Seo Hye-jin Reporter