Will it be a problem if I operate a simple payment service without a separate license under fintech regulations?

Simple payment services may fall under the electronic financial business depending on their structure, and operating without a license may be subject to punishment for violating fintech regulations.

In particular, if it involves user fund flows, the possibility of relevant laws being applied is high.

The Electronic Financial Transactions Act defines cases of receiving user funds and processing payments, or issuing and managing payment methods as electronic financial business.

In this case, it may fall under electronic payment processing business (PG business) or prepaid electronic payment instrument issuance/management business, and registration with the Financial Services Commission is required.

If you operate the service without going through this, unregistered operation may be subject to imprisonment for up to 3 years or a fine of up to 20 million won.

In addition, if a violation of fintech regulations is recognized, criminal punishment may be accompanied by administrative measures such as service suspension orders and business suspension, which may affect the business operation itself.

In particular, when funds are kept for a certain period during the payment process or when the settlement structure is directly designed, regulatory application is often an issue.

In such situations, the structure of the service should be examined based on how the fund flow is designed and whether user funds are directly handled.

Accordingly, it can be determined whether registration as an electronic financial business is required, or, if necessary, methods of adjusting the structure through partnerships with registered businesses can be considered.

In conclusion, simple payment services may be classified as electronic financial business depending on the operation method, so operating without a license may lead to violations of fintech regulations, and prior review of the service structure is necessary.