Kakao Pay is facing the risk of a 15 billion won penalty surcharge for allegedly handing over personal information of 40.45 million users to China's Alipay.
According to the financial sector on the 9th, the Financial Supervisory Service (FSS) recently held a sanctions deliberation committee regarding Kakao Pay's violation of the Credit Information Act and decided to impose a penalty surcharge of 15 billion won on Kakao Pay. It has also been reported that the sanctions plan from the FSS includes lighter disciplinary action against Kakao Pay employees.
The FSS communicated the results of this meeting to the Financial Services Commission. The commission is expected to determine the final level of sanctions against Kakao Pay considering the FSS's deliberation results and Kakao Pay's explanations.
The FSS found allegations of Kakao Pay's violation of the Credit Information Act during an on-site inspection of Kakao Pay in May of last year. According to the FSS, Kakao Pay provided personal information of 40.45 million users to Alipay without user consent from April 2018 to May of last year.
Meanwhile, Kakao Pay expressed its intention to diligently explain and respond according to the established procedures.