KakaoBank and Toss Bank will work with the Seoul Metropolitan Police Agency to build a prevention system to block suspected youth cyber-gambling transactions at the remittance stage. The system links gambling risk information confirmed by police with banks’ own risk management systems to take preventive steps such as warnings and transfer restrictions during financial transactions, and connects users to counselling and treatment and recovery.

KakaoBank and Toss Bank said on Oct. 30 they signed a memorandum of understanding with the Seoul Metropolitan Police Agency on Oct. 29 at its headquarters in Jongno-gu, Seoul, to prevent youth cyber gambling and create a safe digital financial environment.

The agreement was designed to detect youth cyber-gambling risks early and strengthen preventive functions to prevent harm during financial transactions. The three parties will pursue steps such as sharing information on accounts suspected of gambling, providing guidance on risky transactions through mobile apps, and linking counselling and treatment support systems.

A key feature is that it moves away from responding after crackdowns and reports, so that preventive measures operate at the moment a youth tries to transfer gambling funds. The aim is to reduce in advance the risk that youths addicted to gambling suffer additional financial harm or become involved in secondary crimes.

The Seoul Metropolitan Police Agency and the two internet-only banks also decided to strengthen their response to suspected gambling transactions that use other banks’ accounts by holding regular working-level consultative meetings. They plan to broaden cooperation, including reflecting related information in pop-up notices on bank apps during periods for voluntary reporting of youth gambling.

Ko Beom-seok (고범석), commissioner of the Seoul Metropolitan Police Agency, said, "Youth gambling cannot be addressed sufficiently only through responses after reports or detection." He added, "We will establish a sustainable protection system that runs from halting financial transactions to counselling, treatment and recovery."

KakaoBank CEO Yun Ho-young (윤호영) said, "Early prevention and appropriate support are important for youth cyber gambling." He added, "We will continue efforts for prevention and protection so that youths can experience a safer digital financial environment."

Toss Bank CEO Lee Eun-mi (이은미) said, "We will act with a sense of responsibility in protecting youths from the risks of gambling." She added, "We will fulfill the bank’s role so that youths at risk can receive the help they need."