Eun Seong-su, on Questions about the Electronic Financial Transactions Act: "Let's Stop," Yet "Agrees with Big Tech's Concerns" (Summary)

Eun Seong-su, Meeting with Financial Association Heads on 22nd? Agreement on 6-Month Extension of COVID-19 Financial Support
Sharing '5 Principles for Smooth Landing Support'? Borrowers Choose Repayment Timing and Method, Details to be Released in March
On 'Jeongeum Act' Questions? 'Same Regulation, Same Principle', Agrees with Big Tech Concerns

Eun Sung-soo, Chairman of the Financial Services Commission, is attending the 4th Innovation Growth BIG3 (Future Cars, Biohealth, System Semiconductors) Promotion Meeting held earlier this month. Photo by Moon Ho-nam munonam@

[Asia Economy reporters Wondara and Song Seungseop] Eun Sungsoo, Chairman of the Financial Services Commission, refrained from making direct comments on the Electronic Financial Transactions Act (EFTA), which has been a source of conflict with the Bank of Korea, but reaffirmed his existing stance by saying, "I agree with the concerns raised by the big tech industry." The FSC has decided to prepare a smooth landing plan for COVID-19 financial support that allows borrowers to choose the timing and method of repayment.

After Bank of Korea's Rebuttal, "Let's Stop Now"? "Financial Sector and Big Tech Need a Level Playing Field"

On the afternoon of the 22nd, at the Bankers Association Hall in Jung-gu, Seoul, following a meeting between Chairman Eun Sungsoo and financial association heads, Chairman Eun told reporters regarding the EFTA controversy, "We discussed many things on Friday (19th), but let's stop now," and was reserved in his remarks. However, he added, "The big tech side says the tilted field needs to be leveled, and they still have concerns about 'same act, same regulation' and say more progress is needed. I agree with that," reaffirming his existing position on the EFTA.

Chairman Eun and the Bank of Korea have been in conflict over the EFTA. Earlier, on the 17th, the Bank of Korea issued an unusual statement criticizing the FSC’s proposed EFTA as the "Big Brother Act." The Bank claimed that under the EFTA, big tech companies would be required to provide electronic payment transaction information to the Korea Financial Telecommunications & Clearings Institute (KFTC), and the FSC would have unrestricted access to this data. In response, Chairman Eun said after a meeting with financial institution heads on the 19th, "Since the Bank of Korea currently oversees the KFTC, calling it Big Brother is essentially self-criticism," making a pointed remark. The EFTA is currently pending in the National Assembly.

[Image source=Yonhap News]

"Borrowers Decide Repayment Method and Period" On Citi Bank Withdrawal Rumors: "No Official Report Received"

Regarding the meeting, Chairman Eun said, "We shared the smooth landing plan with the association heads," and added, "The detailed contents will be disclosed in March."

The five agreed principles for smooth landing support shared that day are: ▲Providing optimal repayment consulting considering the borrower's situation ▲Granting a repayment period longer than the deferment period when principal and interest are repaid in installments during deferment; allowing maturity extension if the remaining maturity is shorter than the deferment period ▲Interest accrued during the deferment period is maintained in total regardless of repayment method and period (no interest charged on deferred interest) ▲If the borrower wants to repay earlier than the original plan, early repayment is allowed without penalty ▲The final decision on repayment method and period is chosen by the borrower.

Chairman Eun explained, "We set customer-friendly principles, and all financial companies agreed." He added, "When lowering the maximum interest rate, we asked that marginalized groups be absorbed by savings banks or credit card companies, and the association heads requested FSC’s attention and support on ways to reduce costs and absorb these parts."

Regarding rumors of Korea Citi Bank’s withdrawal, he said, "I was only informed that Citi Bank’s side said it is not an official position." He continued, "Regarding the departure of foreign banks, comparing tax issues with other countries, adjusting taxes to attract companies seems to be putting the cart before the horse." He added, "Korea’s competitiveness lies in the large size of its asset market," and said, "While carrying such things (taxes) as a handicap, what else can we develop? We will think more about how to attract foreign banks."