As more South Koreans use mobile banking apps to send holiday money during Chuseok, authorities highlight ongoing risks of misdirected transfers, with thousands seeking recovery assistance in 2024 despite high success rates.
As the Chuseok holiday sends more people reaching for mobile banking and instant transfer apps to hand money to parents or younger relatives, South Korea’s financial authorities are warning that mistaken transfers remain a persistent risk. The convenience of sending funds without visiting a branch or ATM has become part of daily life, but it also makes it easier to send money to the wrong account when a number is entered incorrectly or a bank is selected by mistake.
Public data cited by Aju Business Daily show that the Korea Deposit Insurance Corporation received 16,753 applications for mistaken-transfer recovery in 2024. Many of those cases stemmed from simple input errors, while the largest share involved transfers made through smartphone banking apps and simple payment services. In practice, that means a misplaced tap on a touchscreen can be enough to send holiday money to an unintended recipient.
If a sender realises the mistake quickly, the first step is to contact the financial institution used for the transfer and request a reversal. In the past, that often meant calling a customer service centre or visiting a branch, but some banks now allow requests to be filed directly through their mobile apps. Once the claim is registered, the bank contacts the recipient and asks for the money to be returned voluntarily.
If the recipient agrees, recovery is usually straightforward. If they refuse or avoid contact, the process becomes more complicated, and the deposit insurer’s mistaken-transfer support programme can be used. Under that system, the agency tries to reach the recipient and encourage voluntary repayment, and if necessary it can pursue recovery through a court payment order without requiring a full lawsuit. According to the report, the average recovery rate for these cases stands at 95.6%.
Even so, not every case qualifies. Applicants are expected to file with their bank first, and the request must be made within one year of the transfer. Recovery support may also be limited if the account was used in fraud or voice-phishing, if it has been frozen or seized, or if the recipient has died or is a dissolved company. For that reason, officials continue to stress the simplest safeguard of all: check the account number and recipient details carefully before pressing send.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
