Changes in the financial industry in 2014

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Several revised financial rules and regulations will take effect from 2014 to relieve financial burden and promote healthy financial ecosystem.

A. Banking industry

1. Banks will be required to give preliminary announcements on default via email, SMS, and etc. before 5 business days. (April 1, 2014)

2. Bank notes will be printed using new materials with improved functions to identify forged checks. Online system will be established to enable bank note issuers and users to easily identify falsified bank notes. (April 1, 2014)

3. All ATM transactions using magnetic stripe cards will be banned. (February 3, 2014)

B. Insurance industry

1. Insurance policy holder will be able to cancel the contract within 15 days after receiving the insurance policy. (June, 2014)

2. Insurance terms will be revised in an easier manner to help contract holders to better understand the terms and conditions. (April 1, 2014)

3. Medical insurance policy terms will be revised to clarify irrational and obscure clauses, and to relieve insurance payment burdens of socially vulnerable class. (April 1, 2014)

5. Car insurance policy terms will be revised so that those who have a family member with third degree physical disadvantage or own handicap transport vehicles can easily buy car insurance policies. (January, 2014)

6. Vehicle categories according to safety functions will be broken down into 26 from the current 21 and insurance premium discount will be increased to 50%~100%. (January, 2014)

C. Securities and capital markets

1. Securities firms will be required to apply same yields on every investment regardless of its amount. (January 1, 2014)

2. ‘Fund Online Korea (or, Fund Supermarket)’ will begin service. (March, 2014)

3. Criminal punishment and fines against window dressing and poor auditing will be strengthened. (June, 2014)

4. ‘Instant credit card cash service’ will be renamed to ‘short-term credit card loan’ to prevent confusion. (September 1, 2014)

5. Provide investment guarantee to the SMEs which use the Credit Recovery Fund in a bid to encourage more investment in promising start-up companies. (February, 2014)

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