25th National Assembly Public Hearing "Not a Good Image for the Public," Criticism of 'Authority Disputes'
Eun Seong-su "Will Supplement Incomplete Personal Information Parts... Will Cooperate Well with the Bank of Korea"
At the Hearing "Unprecedented Excessive Legislation" VS "Deposits Should Be Refundable if a Company Goes Bankrupt"
Fintech Industry "It's Been 2 Years Since the Discussion on Amendments to the Electronic Financial Transactions Act... Further Delays Will Harm Businesses"
[Asia Economy Reporter Wondara] Eun Sung-soo, Chairman of the Financial Services Commission, appeared before the National Assembly's Political Affairs Committee on the 25th and responded to National Assembly Political Affairs Committee Chairman Yoon Kwan-seok's question that "there is criticism that the controversy over certain content continues rather than the content of the bill" by saying, "We will carefully examine whether the points pointed out by the Bank of Korea are appropriate and supplement any shortcomings, and will cooperate well with the Bank of Korea before going to the subcommittee."
"Not a good look for the public" criticism... Eun Sung-soo: "Will supplement shortcomings in personal information"
On that day, the Political Affairs Committee raised concerns that the dispute over authority between the two institutions has pushed financial consumer protection to the background. Professor Ahn Dong-hyun of Seoul National University's Department of Economics criticized, in response to People Power Party lawmaker Kang Min-guk's question, "Isn't the verbal dispute between the two institutions ultimately a fight over authority?" saying, "From the perspective of a citizen, regardless of being a scholar, it is not a good look." He added, "I don't understand why the Bank of Korea Governor and the Financial Services Commission Chairman come out in the media (for media play) instead of having a final discussion and resolving it with the working-level staff."
The day before, the Personal Information Protection Commission under the Prime Minister's Office issued a statement supporting the Bank of Korea, saying, "Regarding the collection and management of big tech transaction details, the amendment to the Electronic Financial Transactions Act (EFTA) promoted by the Financial Services Commission raises concerns about privacy and personal information infringement."
Chairman Eun said, "We have had three internal discussions with the Bank of Korea since July last year and held five round tables hosted by the National Assembly. There was a lot of opinion convergence, but the criticism seems to have come from a somewhat minor framework," adding, "We will ensure that the members of the committee do not worry."
He continued, "I also spoke directly with the Chairman of the Personal Information Protection Commission and will listen to external expert opinions to make (supplements)," and said, "Especially regarding personal information, if we didn't know and couldn't do it, we can fix it; we are not making a law to infringe on personal information. We will supplement any shortcomings."
The Bank of Korea explained that there is no change from its existing position. Since the Personal Information Protection Commission also announced its official stance on the EFTA amendment and said it would consult with the Financial Services Commission, the Bank of Korea intends to maintain its existing position and observe the discussions between the Personal Information Protection Commission and the Financial Services Commission. Previously, the Monetary Policy Committee, the Bank of Korea's policy decision-making body, officially stated that the payment-related provisions should be excluded from the EFTA amendment and that the two institutions and experts should discuss them together later.
Bank of Korea Governor Lee Ju-yeol, during a report to the National Assembly's Planning and Finance Committee on the 23rd, said, "I am embarrassed by the perception that this is a turf war over who manages the Korea Financial Telecommunications and Clearings Institute (KFTC)," but rebutted, "The issues are different," and added, "Including big tech internal transactions in the KFTC payment system could undermine the 'stability,' which is the lifeblood of payment and settlement, due to the heterogeneous nature of the work."
Consensus on the necessity of the EFTA amendment... but "Unprecedented excessive legislation" VS "Deposits should be refundable if a company goes bankrupt"
Meanwhile, at the public hearing that day, there was a consensus that the EFTA amendment itself is necessary considering the rapidly growing digital financial market. However, Professor Yang Ki-jin of Jeonbuk National University argued, "The EFTA amendment has no precedent worldwide, including China. Transmitting personal information related to internal transactions externally is excessive legislation."
Professor Jung Soon-seop of Seoul National University's Department of Law countered with the opinion that supervision should be strengthened from the perspective of 'consumer protection.' Professor Jung pointed out, "If a fund transfer operator goes bankrupt, the supervisory institution should be able to directly return the user's deposited funds," adding, "It is especially important to note that this is a field with strong public interest."
Ryu Jae-soo, Executive Director of the Korea Financial Telecommunications and Clearings Institute, addressed the recently raised 'Big Brother controversy,' stating, "The liquidation of big tech (large information and communication companies) is not about designing a new liquidation settlement system but can be seen as an expanded concept of open banking." He added, "The KFTC has been responsible for payment and settlement and clearing operations such as bill exchange for over 100 years and is designated as an institution subject to the strictest protection, management, and supervision," and explained, "Internally, we operate an information protection department as a headquarters system and are fully committed to security monitoring and incident response."
Ryu Young-jun, Chairman of the Korea Fintech Industry Association, said, "Liquidation inevitably requires considerable effort and time. It takes a long time to implement it in practice," adding, "It has been two years since the EFTA amendment was proposed. Many companies are still holding back on business and hiring for investment, so further delays could harm the operators."
'Big Brother' dispute over the EFTA
The Bank of Korea issued a statement on the 17th emphasizing, "As the central bank ultimately responsible for the payment and settlement system, the Bank of Korea opposes the use of the payment and settlement system as a Big Brother tool." 'Big Brother' is a term from George Orwell's novel '1984,' referring to a power that monitors individuals and controls society.
In response, Chairman Eun met with reporters at the Bankers Association Hall in Jung-gu, Seoul, on the morning of the 19th and, when asked about the Bank of Korea's criticism, strongly rebutted, saying, "The Bank of Korea's criticism of the EFTA amendment as 'Big Brother' is an exaggeration," and added, "Since the Bank of Korea oversees the KFTC, calling it Big Brother is like criticizing itself."
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