As mobile-focused digital financial transactions expanded, revenue in the electronic financial business topped 12 trillion won for the first time last year. But as more firms failed to meet management guidance standards, financial authorities have moved to strengthen soundness oversight.

According to the Financial Supervisory Service's "2025 electronic financial business operating results" released on May 15, the number of registered electronic financial companies stood at 241 at the end of last year, up 34 from 207 a year earlier. That marked a 16.4 percent increase.

By business type, payment gateway operators numbered 190, the most. They were followed by 120 prepaid electronic payment means issuers and managers and 35 debit electronic payment means issuers and managers.

Revenue in the electronic financial business totalled 12 trillion won last year, up 1.6 trillion won, or 15.4 percent, from 10.4 trillion won a year earlier. Revenue at payment gateway businesses was 9 trillion won, while revenue at prepaid electronic payment means issuers and managers was 2.2 trillion won.

Growth in the prepaid sector stood out. Prepaid-sector revenue rose 29.4 percent from a year earlier, and prepaid balances increased 15.6 percent to 5.2 trillion won from 4.5 trillion won. By contrast, payment gateway balances fell 7.1 percent to 9.2 trillion won from 9.9 trillion won.

Still, industry polarization appears to be deepening. The top 10 companies accounted for 67 percent of total electronic financial business revenue, while small and midsized firms are struggling to secure profitability, the FSS explained.

As of the end of last year, 29 electronic financial firms did not meet management guidance standards, up 1 from a year earlier. Of those, 21 had a record of failing to meet the standards even after 2023.

The FSS said most non-compliant firms are small and do not have large payment gateway or prepaid balances. Their payment gateway balances were tallied at 50 billion won, about 0.5 percent of the total, and prepaid balances were 440 billion won, about 8.5 percent of the total. Prepaid top-up funds are being managed separately in full through external trusts and other means.

The FSS said it plans to draw up detailed standards for management disclosures in the electronic financial business that are scheduled to take effect in December under the revised Electronic Financial Transaction Act. It also plans to strengthen the sound management system through measures including its right to demand actions against firms that fail to meet management guidance standards.