Kakaopay suspends car insurance comparison services: report

The company was said to be operating an unauthorized brokerage service.

The financial arm of Kakao Corp, Kakaopay, will be suspending its car insurance comparison service after the Financial Services Commission said it is an unauthorized brokerage service, according to a report by YonHap.

Kakaopay helps customers find the best deal amongst its partnered car insurers but Yonhap sources said that it will be suspended by 25 September.

The report also said that 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.

Kakaopay said it will make more effort to comply with the financial regulator's guidelines.