"Only 10% of Electronic Financial Firms Fully Equipped with Liability Insurance and Reserves"

[Economy 365]

Only about 10% of all electronic financial companies have secured both liability insurance and reserves to prepare for potential electronic financial accidents.

As of the end of July of this year, out of 194 electronic financial firms, only 19 companies, or 9.8%, met both the requirements for liability insurance subscription and reserve accumulation.

Under current laws, fulfilling just one of either subscribing to insurance or accumulating reserves satisfies the legal standard.

However, there were 12 companies that failed to meet the legal minimum standards for either option.

The total amount involved in electronic financial accidents through July of this year reached approximately 17.08 billion won, surging to 3.4 times the level recorded in 2021.

On the other hand, the damage compensation rate dropped from 42.4% in 2021 to 17.3% this year.

The Financial Supervisory Service stated that it has not yet imposed sanctions on the substandard companies, but is instead taking guidance measures such as receiving implementation plans.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.