Kakao Pay: “Claims of Customer Information Being Transferred to China’s Largest E-commerce Affiliate are Unfounded”
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ⓒKakao Pay
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, ‘[Digital Daily, Choi Cheon-uk Reporter] Financial regulators have detected that Kakao Pay transferred customers’ personal credit information to Ali Pay, a subsidiary of Ant Group, China’s largest fintech company, without customer consent.’,
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, ‘However, Kakao Pay insists that this claim is completely false and has announced its intention to engage in a truthful debate.’,
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, ‘According to the financial authorities on the 13th, the Financial Supervisory Service found that Kakao Pay transferred personal credit information to Ali Pay without customer consent and is currently considering violations of relevant laws such as the Credit Information Act. Sanctions will be imposed if violations are confirmed.’,
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, ‘According to the investigation results of the Financial Supervisory Service, Kakao Pay transferred personal credit information to Ali Pay to provide payment services on the Apple App Store. It was reported that an Ali Pay subsidiary, which was entrusted with this task during the process of reprocessing customer personal information, transferred the personal credit information.’,
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, ‘According to the Credit Information Act and the Personal Information Protection Act, when providing collected personal credit information to a third party, the consent of the parties must be obtained, and as Ali Pay is a foreign company, consent for the international transfer of personal information must also be obtained.’,
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, ‘The Financial Supervisory Service regards Kakao Pay’s actions as violations of these two laws.’,
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, ‘However, Kakao Pay stated, “The claim that we illegally provided information to Apple without customer consent is not true.”‘,
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, ‘In a statement released on that day, Kakao Pay explained, “Apple recommended using Ali Pay’s system as a means of payment on the App Store, and as a result, a cooperative relationship was established between Kakao Pay, Ali Pay, and Apple.”‘
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, ‘Furthermore, they clarified, “There was no illegal provision of information in this process. Information transfer essential for this payment has been carried out through the subcontracting process based on the business entrustment relationship between Kakao Pay, Ali Pay, and Apple, which does not require user consent.”‘,
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, ‘According to Kakao Pay, under the Credit Information Act, when personal credit information is transferred as part of subcontracting, consent of the information subject is not required.’,
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, ‘Kakao Pay also stated, “When providing information to Ali Pay, encryption methods with randomly generated codes have been applied to thoroughly anonymize the data. The one-way encryption method used ensures that users cannot be identified and the information cannot be decrypted for purposes other than fraud detection.”‘,
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, ‘They also mentioned, “Ant Group, which owns Ali Pay, is a separate entity independent of the e-commerce platform Alibaba Group, and claiming that Kakao Pay’s customer information was transferred to China’s largest e-commerce affiliate without consent is unfounded.”‘,
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, ‘Meanwhile, Kakao Pay’s two major shareholders are Ali Pay Singapore Holdings (32.06% stake), which is an Ali Pay-related affiliate of Ant Group.’,
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