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Terms and Conditions for Travel Pay Innovative Financial Service

Chapter 1. General Provisions

1. The term “Travel Pay Card” (hereinafter referred to as the “Card”) refers to a card usable at domestic credit card merchants and overseas online/offline merchants that accept VISA cards. It is classified as a registered prepaid electronic payment instrument under the Electronic Financial Transactions Act.

2. The term “Travel Wallet Related Terms and Conditions” refers to the Terms and Conditions for the use of Travel Wallet Services (including the Terms and Conditions for Small-Amount Overseas Remittance Service, Online Currency Exchange Service, and Travel Pay Service) concluded between the Company and the User, which are posted via the Company’s website or app interface.

3. The term “Member” refers to a User who agrees to these Terms and Conditions and the Travel Wallet Related Terms and Conditions, applies for issuance of the Card via the Travel Wallet application (hereinafter the “App”), and has received the Card.

4. The term “Innovative Financial Service” refers to a financial or related service that is recognized as differentiated from existing financial services in terms of content, method, or form of provision, and is designated for a period of up to two years by the Financial Services Commission in accordance with the Special Act on Support for Financial Innovation, after screening by the Innovative Financial Review Committee and consent from relevant administrative agencies.

5. The term “Limit Increase Service” refers to a service that allows a Member to apply for a temporary increase in the holding limit of foreign currency-denominated prepaid electronic payment instruments for use in overseas online or offline merchant transactions.

6. The term “Foreign Currency Point Transfer (Peer-to-Peer Remittance) Service” refers to a service that enables a Member who has registered a real-name deposit account and charged foreign currency points to the Card to remit or transfer such points to another Member. This service is designated as an Innovative Financial Service under the Special Act on Support for Financial Innovation, which permits the transfer of foreign currency-denominated prepaid electronic payment instruments for the designated period under exception to the Electronic Financial Transactions Act.

7. Terms not otherwise defined in this Article or elsewhere in these Terms and Conditions shall follow the definitions set forth in the Travel Wallet Related Terms and Conditions, the Electronic Financial Transactions Act, or other applicable laws. In the absence of such definitions, general commercial practices shall apply.

1. These Terms and Conditions shall take effect when the Company posts them on its website or app, or provides them at the time of Card purchase/issuance, and the Member agrees to them.

2. When the Company enacts or amends these Terms and Conditions, it shall post the revised terms along with the effective date and reasons for amendment at least one month in advance via its website or app, and notify Members. However, in cases of urgent amendments due to changes in laws, the Company shall post the changes and notify Members immediately.

3. In such cases of amendment, the Company shall notify Members of the following: “Members may terminate the agreement before the business day prior to the effective date of the amended Terms and Conditions. Failure to express objection shall be deemed as consent to the changes.”

4. Members may terminate the agreement before the business day preceding the effective date if they do not agree to the amended Terms and Conditions. If no objection is raised, consent shall be deemed to have been given.

5. If a Member does not consent to the revised Terms and Conditions, their use of all or part of the Service may be restricted.

1. The Company shall provide these Terms and Conditions to the Member, and if the Member requests, shall deliver a copy of the Terms and Conditions by electronic document (including email), facsimile, mail, or in person.

2. If a Member requests an explanation of these Terms and Conditions, the Company shall explain the essential contents using one of the following methods:
1. Direct explanation by the Company to the Member;
2. Displaying the essential contents in an easy-to-understand format through an electronic device and receiving the Member’s confirmation that they have fully understood it.

1. If there is any separate agreement between the Company and the Member that differs from these Terms and Conditions, such agreement shall take precedence.

2. Matters not stipulated in these Terms and Conditions shall be governed by the Travel Wallet Related Terms and Conditions. In case of a conflict between these Terms and Conditions and the Related Terms concerning supplementary services, these Terms and Conditions shall prevail.

3. For matters not specified in either the Terms or the Related Terms and Conditions, in the absence of other agreements, the Basic Terms and Conditions for Electronic Financial Transactions, the Electronic Financial Transactions Act, and other applicable laws or general commercial practices shall apply.

Chapter 2. Limit Increase Service

1. Notwithstanding the provisions of Article 9 (Recharge) of the Terms and Conditions for Travel Pay Usage under the Travel Wallet Related Terms and Conditions, a Member may apply to temporarily increase the Card’s recharge limit up to an amount equivalent to KRW 3,000,000 for a pre-set period (one of 3 months, 6 months, 1 year, or 2 years) during the designated period of the Innovative Financial Service, in accordance with this “Limit Increase Service.”

2. Of the increased recharge limit applied for pursuant to Paragraph 1 above, any amount exceeding the equivalent of KRW 2,000,000 including the current balance may only be used for transactions at overseas merchants.

3. When a Member applies for an increased recharge limit under Paragraph 1, the Company shall provide prior notice to the Member that (i) the increased limit applies only for the designated application period, and (ii) the increased limit is restricted to use at overseas merchants.

Chapter 3. Foreign Currency Point Transfer (Peer-to-Peer Transfer) Service

1. Notwithstanding Article 2-39 Paragraphs 4 and 5 of the Foreign Exchange Transaction Regulations, under the Foreign Currency Point Transfer (Peer-to-Peer Transfer) Service, Members who are residents may transfer or transact foreign currency-denominated prepaid funds (points) charged to their cards using any of the following methods:
1. A Member who is a resident may use the foreign currency-denominated prepaid funds (points) charged to their card to transfer them to another Member who is also a resident.
2. A Member who is a resident may receive and hold or use foreign currency-denominated prepaid funds (points) transferred to their card from another Member who is also a resident.

2. The transaction limits between resident Members under Paragraph 1 are restricted to the following: up to USD 1,000 per transaction, USD 5,000 per day, and USD 10,000 per year per prepaid electronic payment instrument issued in the name of the transferor. (Note: These amounts are calculated by converting all foreign currency prepaid instruments into USD and summing the total.)

1. The Company shall purchase and separately deposit, by secure means, foreign currency equivalent to 100% of the prepaid foreign currency amount charged by the Member, and manage and operate it accordingly.

2. The Company shall verify the residency status of the transacting Member both at the initial transaction and upon each renewal period, since a change in residency status from resident to non-resident may result in capital inflow/outflow effects. (Refer to Article 10, Paragraph 2, Item 5 Subparagraph (d) of the Enforcement Decree of the Foreign Exchange Transactions Act.)

3. The Company shall report monthly transaction records of foreign currency-denominated prepaid electronic payment instruments between residents to the foreign exchange network and submit monthly reports to the National Tax Service, Korea Customs Service, Korea Financial Intelligence Unit (FIU), and Financial Supervisory Service for the purposes of preventing tax evasion and money laundering related to gift taxes.

Chapter 4. Designation and Operation of the Innovative Financial Service

1. The Limit Increase Service set forth in Chapter 2 and the Foreign Currency Point Transfer (Peer-to-Peer Transfer) Service set forth in Chapter 3 (collectively, the “Services”) are designated Innovative Financial Services under the Special Act on Support for Financial Innovation. The Company has the exclusive right to operate these Services for the duration of the designation period.

2. The Company may terminate the operation of the Services if any of the following events occur:
1. The designation period for the Innovative Financial Service expires and the Company must immediately terminate operation of the Services.
2. The Financial Services Commission cancels the designation of the Services as Innovative Financial Services upon consent from relevant administrative agencies.
3. The Financial Services Commission issues an order to suspend or alter the Services upon consent from relevant administrative agencies.
4. The Company voluntarily requests cancellation of the Innovative Financial Service designation, and the Financial Services Commission approves such cancellation.
5. The designation loses effect due to a corporate merger, conversion, or other organizational change. (However, this does not apply if the successor entity applies and obtains a change decision from the Financial Services Commission.)
6. Any other circumstances arise that make it significantly difficult or impossible for the Company to continue providing the Services, and the Company obtains the Member’s consent to terminate the agreement early.

3. Even if the contract between the Company and the Member concerning the Services has not been terminated, if the Services are discontinued under Paragraph 2, the contractual obligations and responsibilities of the Company toward its customers shall remain effective until fulfilled.

Article 10 (Risk Disclosure and Compliance with Risk Management Measures)

1. As this Service has been designated as an Innovative Financial Service under the Special Act on Support for Financial Innovation, it is operated on a pilot basis for a designated period. Accordingly, the Company shall notify users in advance that unforeseen risks may arise.

2. The Company may provide the Service only after informing users of the risks pursuant to Paragraph 1 and obtaining their consent to receive a pilot service.

3. The measures set forth in Paragraphs 1 and 2 shall not affect the Company’s legal liability to Members.

4. When operating the Service as an Innovative Financial Service, the Company shall establish and comply with measures to protect Members as financial consumers and to manage risks, including but not limited to the following. These measures shall be disclosed to Members at the application stage:
1. Restrictions on the scope or number of users, transaction amount per case, or transaction frequency per user
2. Methods for notifying users of risks and obtaining consent
3. Procedures for handling and resolving disputes
4. Measures to prevent potential damages or risks to Members during the designation period
5. Measures to ensure fulfillment of compensation responsibilities, such as subscribing to liability insurance
6. Measures to prevent damages or risks to Members after the designation period ends
7. Personal data protection and processing measures to prevent loss, theft, leakage, falsification, or damage of Members’ personal information
8. Standards and procedures for risk management, including recognizing, assessing, monitoring, and controlling risks arising from the Service

Article 11 (Liability and Indemnity)

1. If a Member incurs damages due to the suspension or termination of the Service, the Company shall be liable for compensation. However, the Company shall be exempt from liability if it proves there was no willful misconduct or negligence.

2. To fulfill its liability for damages under Paragraph 1, the Company must subscribe to liability insurance. If such insurance is not available, the Company shall establish a separate compensation plan for personal and property damages in consultation with the Financial Services Commission.

3. If other laws stipulate separate provisions regarding the Company’s liability for damages to users, such laws shall take precedence.

Article 12 (Dispute Resolution and Mediation)

1. The Company shall establish procedures to accommodate valid opinions or complaints submitted by Members, users, or other stakeholders (hereinafter referred to as “Members, etc.”) and compensate for damages arising from the Service.

2. If Members, etc. have any objections to the Service, they may request dispute resolution or compensation in accordance with the procedures set out in Paragraph 1 or apply for dispute mediation with the Financial Dispute Mediation Committee of the Financial Supervisory Service.

3. The detailed procedures and methods for submitting requests for dispute resolution or mediation under Paragraphs 1 and 2 are as follows:
1. The Company shall designate a person responsible for handling disputes and disclose their contact information (telephone number, fax, email, etc.) to Members, etc. via the internet or other means.
2. Members, etc. may submit requests for dispute resolution or compensation in writing or online to the Company’s headquarters or branch offices.
3. The Company must notify Members, etc. of the investigation or results of the dispute resolution within 30 days of receiving the request.
4. Matters related to the application for dispute mediation shall be governed by the Financial Consumer Protection Act.

Article 13 (Reporting, Inspection, and Supervision)

1. The Company shall submit an operational performance report to the Financial Services Commission in accordance with Article 18 of the Special Act on Support for Financial Innovation.

2. The Financial Supervisory Service and other supervisory authorities designated by relevant financial laws may inspect the Company pursuant to Article 29 of the same Act and may request submission of materials related to business and financial status, appearance of relevant personnel, and statements of opinion.

Chapter 5. Miscellaneous