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Kakaopay to suspend car insurance comparison service

Kakaopay's corporate logo (Kakaopay)
Kakaopay's corporate logo (Kakaopay)

Kakaopay, a financial unit of tech giant Kakao Corp., will suspend its car insurance comparison service later this month after providing an unauthorized brokerage service, industry sources said Friday.

Kakaopay's service to help customers find the best deal among six partnered car insurers, including Hyundai Marine and Fire Insurance Co. and DB Insurance, will be suspended from Sept. 25, according to the sources.

The Financial Services Commission said the online program is not advertising that simply links customers with insurers providing best deals for a fee, but is an actual financial brokerage and thereby requires a relevant business license.

After the suspension, Kakaopay will maintain its partnership with the insurers through banner advertising. Kakaopay said it will make more effort to comply with the financial regulator's guidelines.