Measures of suspension of payment
Measure of suspension of payment of financial companies- In any of the following cases, if a finance company suspects that an account is being exploited for telecommunications-based financial fraud through the confirmation of the details of transactions, etc., it should immediately take measures to suspend payments on all of such account exploited for fraud (Article 4(1) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
· Where there is an application for the compensation for loss or a request for the suspension of payments
· Where an investigative agency or the Financial Supervisory Service provides the finance company with information that an account is suspected of being exploited for fraud
· Where an account is assumed to be exploited for fraud after taking the measure to identify the account as an account for unconscionable transaction
· Other matters prescribed by the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”
Notification and announcement regarding measures of suspending payment of financial companies- Where a finance company takes a measure to suspend payment on the account exploited for fraud, the following matters should be notified and publicly announced without delay for at least fourteen (14) days (Article 5(2) of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
· Matters regarding the date, grounds, amount, etc. of suspension of payment
· Matters regarding the account exploited for fraud including the store, types of saving accounts, account numbers, etc. related to suspension of payment
· Matters regarding the finance company that applied for suspension of payment
· Where the balance of the account exploited for fraud, the payment of which has been suspended does not exceed 10,000 won but a victim requests a financial company to commence a procedure for extinguishment of claims within 30 days from the date on which he/she receives notification of suspension of payment.
- Where a finance company has taken measures to suspend payments, it has to notify the following persons of such measures for the suspension of payments without delay. However, if the finance company does not know the whereabouts of the account holder suspended for payment, it has to announce publicly the fact concerning measures for the suspension of payments on its Internet homepage, etc., (Article 4(2) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
· Account holder
· Victim that applied for compensation for loss
· A finance company that manages the relevant accounts into which money is directly deposited or remitted
· Financial Supervisory Service
· Investigative agencies (only applicable if information was provided)
Prohibition of attachment after suspension of payment- No one can file a lawsuit such as a lawsuit claiming damages or restitution of unjust enrichment; request attachment, provisional attachment, or provisional disposition under the Civil Execution Act, initiate procedures to collect delinquent taxes, or establish pledge right (Body of Article 4-2(1) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).