The FSC approved a revision proposal of the supervisory regulation on specialized credit finance business at its regular meeting held on October 27, which establishes consumer protection rules on recurring payment for subscription business users.

The revised rules provide specific details about the notification requirement and standards for fair refund policy.

(Notification requirement)  Subscription businesses are required to notify their customers seven days prior to switching their service provision from free offering to recurring payment-based services.

(Refund policy)  Subscription businesses are required to set up fair standards for refund policy, charging only the amount of fee commensurate with the used up monthly service.

The revised rules will go into effect from November 18, 2021 along with the revised Enforcement Decree of the Specialized Credit Finance Business Act.

* Please refer to the attached PDF for details.