New Policy Allows Minors to Use Family Cards
Starting from March, minors aged 12 years or older will be eligible to receive and use family cards if their parents apply for them. This change marks a significant shift in the current regulations, which previously prohibited the issuance of family cards to minors due to their non-adult status. The financial authorities have now revised the relevant rules, effectively lowering the barrier to card usage for younger individuals.
The Financial Services Commission announced on the 22nd that it had preliminarily introduced amendments to the “Enforcement Decree of the Specialized Credit Finance Business Act” and the “Supervisory Regulations of the Specialized Credit Finance Business” on the 23rd. According to the announcement, the commission stated, “We will allow the issuance of family cards for use by minor children (aged 12 years or older) upon parental request.” This move formalizes a system that had been operating in a more restricted manner as an innovative financial service.
Currently, five major card companies, including Shinhan and Hyundai Card, are piloting this service. The government is expected to finalize the revised enforcement decree and supervisory regulations by March after they undergo reviews by the Ministry of Government Legislation and approval at a Cabinet meeting.
Addressing Existing Challenges
The Financial Services Commission anticipates that this institutionalization will reduce the practice of children using so-called “eomka” (mother’s card) instead of their own. Under the current law, transferring or lending cards is considered illegal, which can cause inconveniences in loss reporting and damage compensation processes during accidents.
The commission explained, “Managing minors’ card usage within the formal system will allow transparent tracking and control of spending.” This decision reflects the judgment that the convenience of payments for minors will increase in an environment where cash usage is declining and mobile payments are becoming routine.
Benefits of the New Regulation
The new regulation brings several benefits, including:
- Enhanced Transparency: By allowing minors to use family cards, the system enables better oversight of their spending habits. This transparency helps parents monitor and manage their children’s financial activities more effectively.
- Reduced Illegal Practices: The policy aims to curb the informal use of cards by minors, such as relying on their parents’ cards. This reduces the risk of unauthorized transactions and potential legal issues.
- Improved User Experience: With the increasing reliance on digital payments, the ability for minors to use their own cards can simplify transactions and improve overall user experience.
Future Implications
As the financial landscape continues to evolve, the introduction of family cards for minors is a step toward adapting to changing consumer behaviors. The shift from cash-based transactions to digital and mobile payments has made it essential for financial institutions to offer services that cater to all age groups.
The implementation of this policy also highlights the importance of regulatory flexibility. By revising existing laws, the government demonstrates its commitment to fostering innovation while ensuring consumer protection. This approach not only meets the needs of modern society but also sets a precedent for future regulatory changes.
Conclusion
The decision to allow minors aged 12 and older to use family cards represents a significant milestone in the financial sector. It addresses long-standing issues related to card usage among young individuals and aligns with the broader trend of digital transformation. As the revised regulations come into effect, it is expected that this policy will bring about positive changes in how minors engage with financial services.
