[Alpha Biz= Kim Jisun] South Korea’s financial watchdog has reportedly imposed a hefty fine on Kakao Pay for sharing domestic users’ personal information with China’s Alipay without proper consent.
According to financial authorities on Wednesday (April 9), the Financial Supervisory Service (FSS) recently held a disciplinary review committee and decided to impose a fine of approximately KRW 15 billion (about USD 110 million) on Kakao Pay.
The FSS is also said to have included minor disciplinary actions against Kakao Pay employees and executives as part of its sanction measures.
The penalty stems from an on-site inspection conducted by the FSS in May last year, during which it uncovered alleged violations of the Credit Information Act by Kakao Pay.
According to the FSS, between April 2018 and May 2023, Kakao Pay provided the personal data of around 40.45 million users to Alipay without obtaining proper user consent.
Kakao Pay responded by stating that it will “faithfully explain its position in accordance with the relevant procedures.”
The Financial Services Commission (FSC) will determine the final level of sanctions after reviewing the FSS’s findings and Kakao Pay’s formal explanation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
