From ‘Mom’s Card’ to Their Own: Korea Rewrites Rules on Teen Credit Use (Yonhap)
SEOUL, Jan. 23 (Korea Bizwire) — South Korea will allow middle and high school students to use credit cards issued in their own names under a family card system, part of a broader regulatory overhaul aimed at adapting the financial sector to a cashless economy.
The Financial Services Commission and the Financial Supervisory Service said Thursday that they will revise enforcement rules under the Credit Finance Business Act, with legislative notice running through March 4. The changes are expected to be finalized later in March following legal review and Cabinet approval.
Under the revised rules, parents will be able to apply for family credit cards for their children aged 12 and older. While the cards will remain tied to a parent’s account, they will be issued in the child’s name, allowing minors to make payments independently.
Current regulations permit credit cards only for legal adults, making it common for teenagers to borrow their parents’ cards — a practice technically prohibited under existing law. Authorities said this has led to frequent complications, including disputes during loss reports and reimbursement procedures.
Officials said the new system would reduce such risks while improving payment convenience for minors as digital transactions become the norm.
The reform package also includes measures to modernize card-related business regulations. Credit card merchants will be allowed to register through non-face-to-face verification methods, replacing mandatory on-site inspections. Regulators said technological advances now allow authorities to confirm business activity through alternative means without increasing the risk of fraudulent transactions.
To improve predictability for companies seeking licenses in the credit finance sector, the government will also clarify which periods are excluded from regulatory review timelines, including time spent on criminal proceedings or investigations by tax, antitrust and financial authorities.
In addition, the definition of small merchants eligible for preferential card fees will be unified under a single revenue-based standard. Businesses with annual sales of 300 million won ($220,000) or less — whether operating one or multiple establishments — will qualify as small merchants.
The revisions further clarify legal grounds allowing credit finance firms to broker leasing and installment products offered by other companies, and standardize the interest rate applied to refunded penalty payments by linking it to the national tax refund rate.
Regulators said the changes are intended to reflect evolving consumer behavior while reducing unnecessary friction in financial transactions.
Ashley Song (ashley@koreabizwire.com)
