Financial Services Commission Designates 5 Innovative Financial Services
[Asia Economy Reporter Park Sun-mi] From now on, non-residents or foreign residents will also be able to use small-amount overseas remittance services through domestic credit card companies.
On the 24th, the Financial Services Commission announced at its regular meeting the day before that five credit card companies?Shinhan, Hana, Woori, Kookmin, and Lotte?have been designated as innovative financial services to provide overseas remittance services for non-residents and foreigners. This service is expected to be available after March next year.
The FSC has granted an exception allowing remittances of up to USD 50,000 annually (within the limit stipulated by the Foreign Exchange Transactions Act) through credit card companies. Currently, credit card companies are only authorized to conduct small-amount overseas remittance services for domestic residents under foreign exchange regulations. Non-residents or foreign residents who wish to remit overseas could only do so through designated foreign exchange banks.
The FSC also guided that, in principle, personal credit information must be provided with the consent of the information subject, but if information that can identify an individual, such as name and resident registration number, is deleted and related information is shared between financial companies and credit information companies, the service can be implemented without designation as an innovative financial service.
Accordingly, financial companies will be able to provide services that prevent duplicate execution of jeonse deposit loans and excessive calculation of mortgage loan amounts by receiving real-time loan information registered based on the real estate location (real estate unique number, loan amount, loan maturity date, etc.) from applicants during the screening of jeonse deposit loans and mortgage loans.
Previously, NICE Information Service inquired whether a special exception was necessary to allow financial companies to receive loan details registered at the real estate location from applicants without obtaining individual consent from the information subject.
Meanwhile, three services previously designated as innovative financial services have had their periods extended, and one service has had its additional conditions changed. The FSC extended the designation period of the service that automatically calculates and provides real estate prices and collateral values for apartments with fewer than 50 households using big data until October 1 next year, extending it by one year.
The designation periods for the non-face-to-face identity verification service based on decentralized ID by fintech company Fount and the SMS-based withdrawal consent service by Settle Bank have also been extended by two years each.
The subcontract transaction safe payment service by Jik Bank had its deadline for fulfilling additional conditions (financial soundness, strengthening of personnel and physical requirements), which were required at the time of its designation as an innovative financial service in July last year, extended by one year considering delays in investment attraction due to COVID-19. The FSC reviewed the extension of service designation periods and changes to additional conditions to ensure smooth launch and testing of innovative financial services.
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