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Protection of Financial Consumers

Erroneous Remittance Return Support System

Return support application

Erroneous Remittance Return Support System

Concept

- The “Erroneous Remittance Return Support System” refers to a system where the Korea Deposit Insurance Corporation (KDIC) assists the sender in retrieving funds erroneously remitted through financial institutions [Article 39-2(1) of the Depositor Protection Act and KDIC website (https://www.kdic.or.kr) - Erroneous Remittance Return Support System-System Introduction].

※ An “erroneous remittance” refers to a transaction where funds (including prepaid electronic payment methods) are transferred to the wrong recipient because of errors in entering or writing the recipient’s financial institution, account number, etc. (Subparagraph 9 of Article 2 of the Depositor Protection Act; Article 3-2 of the Enforcement Decree of the Depositor Protection Act).

Return support application

Eligibility for return support

- Eligible erroneous remittance for return support is as follows [Article 10(1)2 of the Erroneous Remittance Return Support Regulation and the Erroneous Remittance Return Support Information System (https://kmrs.kdic.or.kr)-Important Notes for Erroneous Remittance]:

· Erroneous remittance made since July 6, 2021

· Where a return request has already been made through a fund transfer financial institution but has not been returned

· Erroneously remitted amounts between KRW 50,000 and KRW 10 million (for erroneous remittance after January 1, 2023, amounts exceeding KRW 10 million but less than or equal to KRW 50 million). In this case, the unjust enrichment claim is based on the entire amount of a single claim, and partial return support applications are restricted.

· Return support applications made within 1 year from the date of the erroneous remittance: The date of the erroneous remittance is not included.

· Where no legal proceedings related to the erroneous remittance are ongoing

How to apply

- Senders who have made an erroneous remittance can apply for return support to the KDIC using the following methods (Article 39-2(1) of the Depositor Protection Act; Article 12(1) of the Erroneous Remittance Return Support Regulation):

· Online application: Erroneous Remittance Return Support Information System (https://kmrs.kdic.or.kr)

· In-person application: Korea Deposit Insurance Corporation (Consultation Center ☎1588-0037)

※ Examples of Return Support Targets

Q1) By when may I apply for an erroneous remittance return?

A1) For an erroneous remittance that occurred after the implementation date of the revised Depositor Protection Act (July 6, 2021), you can only apply for return support within 1 year from the date of the erroneous remittance (excluding the date of the erroneous remittance).

Q2) What is the amount eligible for erroneous remittance return support?

A2) The amount eligible for erroneous remittance return support by the Korea Deposit Insurance Corporation is between KRW 50,000 and KRW 50,000,000. However, for erroneous remittances between KRW 50,000 and KRW 10,000,000, you can apply for a refund after July 6, 2021 (the implementation date of the Depositor Protection Act). For erroneous remittances between KRW 10,000,000 and KRW 50,000,000, you can apply only for those that occurred after January 1, 2023 (the date of expanded eligibility). Retroactive applications are not allowed. Specific examples are as follows:

① Example: If you erroneously remitted KRW 15,000,000 in December 2022

☞ For erroneous remittances between KRW 10,000,000 and KRW 50,000,000, only those that occurred after January 1, 2023, are eligible for return support, so you cannot apply.

② Example: You should have transferred KRW 30,000,000 but erroneously remitted KRW 70,000,000 in January 2023.

☞ Although the transfer amount exceeds KRW 50,000,000, the unjust enrichment because of the erroneous remittance is less than KRW 50,000,000, so you can apply for return support.

Q3) Can I apply directly to the Korea Deposit Insurance Corporation for return support without going through the financial company’s refund procedure?

A3) If you have not gone through the preliminary refund procedure with the financial company, you cannot apply for erroneous remittance return support with the Korea Deposit Insurance Corporation.

When a sender makes an erroneous remittance, they can first request a refund through the respective financial company. If contact is made with the recipient, the erroneously remitted amount can be refunded without any deduction for recovery-related costs.

Source: Erroneous Remittance Return Support Information System-Customer Support-Frequently Asked Questions

※ To check eligibility for erroneous remittance applications and apply for return support, you can visit the <Korea Deposit Insurance Corporation-Erroneous Remittance Return Support Information System> website.