South Korea separates fraud reporting and prevention rules

South Korea’s Financial Services Commission has issued Notice No. 2026-33, amending the rules governing rewards for reporting telecommunications-based financial fraud.

The Financial Services Commission notice, dated 4 August 2026, implements provisions under Act No. 21320 on information-sharing and analysis to prevent telecommunications-based financial fraud and limit losses.

The statutory changes establish a basis for an ‘information-sharing and analysis institution’. The amended rules specify which institutions may provide and use fraud information, together with the categories of information that may be shared. The notice does not identify those institutions or information fields individually.

The Financial Services Commission remains the policy and supervisory authority for the framework.

The notice does not assign a separate operational role to the Financial Supervisory Service, introduce a new offence or expand the supervisory perimeter. It also separates reporting-reward provisions from the broader fraud-response rules.

Provisions on responding to telecommunications-based financial fraud move into a newly enacted regulation on preventing telecommunications-based financial fraud. The amended instrument is retitled the Regulations on Reporting Rewards for Telecommunications-Based Financial Fraud.

Compliance teams must therefore map three administrative tracks: information-sharing controls against the statutory basis and designated information fields, reward procedures under the retitled regulation and prevention provisions under the new regulation. The supplied material does not establish any new consumer-protection regime or change the underlying definition of telecommunications-based financial fraud.

The Financial Services Commission said the amendment was required because Act No. 21320 delegated details on the institutions that provide and use information, the information shared and other implementation matters. The notice records that the Act was promulgated on 3 February 2026 and took effect on 4 August 2026.

For Korean institutions, the immediate task is to update cross-regulator memoranda, ownership tables and rule references used for fraud reporting and information-sharing. The notice does not specify a transition period, a new reporting form or a separate deadline for affected institutions. The consultation has not disclosed the population size of affected institutions.

The binding date is 4 August 2026. The next relevant item is an FSC Korea or FSS supervisory-calendar release clarifying operational forms, designated institutions or transition treatment.