Decided provision of refund for loss
Decision of refund for loss- Where the sum of loss exceeds the amount of claims extinguished, the refund for loss should be the amount calculated by multiplying the amount of claims extinguished by the ratio of the amount of loss of each victim to the total amount of loss, and in other cases, it should be the relevant amount of damage (Article 10(2) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
- The Financial Supervisory Service may request a financial company to submit necessary materials to determine the refund for loss (Article 10(3) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
Provision of refund for loss- The Financial Supervisory Service should determine the person who is to receive a refund for loss and the amount thereof within fourteen (14) days from the date the relevant claims are extinguished and then notify the victim who has applied for the remedy of damages and the financial company of the details thereof, and the financial company notified of such details should pay the victim such refund for loss without delay (Article 10(1) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
- Where a finance company pays a refund for loss, the company should transfer the refund to the account designated by a victim (Article 10(10 of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss” and Article 9(1) of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
- Where claims of the account holder have been extinguished, the Financial Supervisory Service should notify the relevant account holder within three (3) days, the victim who has applied for the remedy of damages, and the related financial company (Article 9(2) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
Persons unentitled to refund for loss- None of the following persons can be paid a refund for damage (Article 11 of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
· A victim in whose case the amount of loss arising from the relevant telecommunications-based financial fraud has been compensated in full, and his/her successor
· A person who has profiteered in connection with the relevant telecommunications-based financial fraud, etc.
· A person who has participated in the relevant telecommunications-based financial fraud, etc. as an accomplice or who is the perpetrator of illegality
· Other persons prescribed by the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”