Kakao Pay has decided to suspend auto insurance premium comparison subscription service due to regulations by the Financial Services Commission. This is in accordance with the Financial Services Commission’s judgment that Kakao Pay’s insurance comparison service is not a simple advertisement but a ‘brokerage’.
According to the insurance industry on the 11th, Kakao Pay decided to operate the automobile insurance premium comparison service, which had been partnered with Hyundai Marine & Marine Insurance, DB Insurance, KB Insurance, Hana Insurance, Aksa Insurance, and Carot Insurance, until the 24th of this month, the period of the Financial Consumer Protection Act. . After the service is discontinued, the partnership is maintained only in the form of banner advertisements.
Kakao Pay is providing auto insurance comparison service through KP Insurance Service, a subsidiary of corporate insurance agency (GA). In this process, Kakao Pay has been receiving fees from insurance companies in the name of ‘advertising fees’ rather than ‘brokerage fees’ whenever it leads to service subscription.
However, the FSC came to a halt when the FSC issued an authoritative interpretation that the product comparison and recommendation services of online financial platforms should be viewed as ‘intermediation’ rather than advertisements.
On the 7th, the Financial Services Commission held the ‘5th Financial Consumer Protection Act (Golden Law) Enforcement Status Inspection Team Meeting’ and decided that online financial platforms such as Kakao Pay and Naver Financial should register with the financial authorities. The FSC judged that in general, if the purpose of online financial platform services is to sell rather than provide information, it can be viewed as a ‘brokerage’.
As a result, Kakao Pay will not be able to provide services until it acquires an insurance brokerage license.
The FSC is emphasizing the principle of ‘same function, same regulation’ for big tech companies. The FSC held a meeting with the fintech industry on the 9th and said, “Even if we pursue innovation, we should work together to protect consumers and maintain a sound market order, rather than receiving exceptions from financial regulations and supervision.” If there is no self-correction effort, we will respond strictly.”
Reporter Lee Bora Global Economics lbr00@g-enews.com
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