South Korea Expands Prepaid Card Limits for Foreign Tourists (Image supported by ChatGPT)
South Korea Expands Prepaid Card Limits for Foreign Tourists (Image supported by ChatGPT)
SEOUL, Jan. 30 (Korea Bizwire) — South Korea’s financial authorities on Wednesday approved a package of regulatory exemptions aimed at improving access to financial services for foreign visitors and expanding funding options for borrowers with weaker credit profiles.
The Financial Services Commission said it designated 34 new initiatives as innovative financial services, including a plan to double the spending limit on prepaid cards issued to foreign tourists.
Under the new framework, the issuance cap for anonymous prepaid electronic payment cards used by overseas visitors will be raised to 1 million won, up from the current 500,000 won. The change will be implemented through a prepaid payment service developed by Viva Republica, the operator of the mobile finance platform Toss.
The service, which offers multilingual financial support, is intended to make transactions easier for foreign travelers who cannot be verified through South Korea’s domestic identity systems. Officials said the measure is expected to improve convenience for visitors while supporting the country’s tourism industry.
In a separate move, the commission approved the participation of savings banks and regional agricultural cooperatives as investors in online peer-to-peer lending platforms, known locally as online investment-linked finance.
Such platforms are widely used by borrowers with mid- to low-tier credit scores but have faced persistent challenges in securing stable funding. By allowing financial institutions to invest in loans screened by these platforms, regulators aim to lower borrowing costs for financially vulnerable groups while broadening funding channels for lenders.
The government said the arrangement would also benefit participating banks and cooperatives by strengthening their business base and offering new investment opportunities.
Other initiatives approved include Hyundai Capital’s one-stop mobile service allowing drivers to apply for vehicle-related add-on services through a single app, as well as a partnership between Hecto Financial and Standard Chartered Bank Korea linking prepaid balances held by app users to affiliated bank accounts.
Officials said the latest round of designations reflects the government’s broader effort to modernize financial regulations and encourage innovation while expanding access to essential financial services.
M. H. Lee (mhlee@koreabizwire.com)
