Financial Authorities Hold Online Briefing
Focus on Industry Review System Improvement Plan
[Asia Economy Reporter Kiho Sung] As financial authorities officially begin the schedule for the second round of MyData service approvals, the financial sector is stepping up its pace. The key issue in the second review is whether the suspension system during the review process can be changed, and significant changes are expected depending on the outcome.
On the 16th, according to the financial sector, the financial authorities held the ‘2nd MyData Approval Review Briefing’ online in the afternoon. This is a preparatory step ahead of the submission of approval review documents for credit evaluation businesses related to MyData scheduled for the 23rd.
In a preliminary demand survey conducted by the Financial Services Commission in March, about 80 companies expressed their intention to apply. Considering the demand for MyData businesses, the Financial Services Commission plans to accept MyData business applications monthly starting from April.
The industry’s attention is focused on whether the suspension system during the review process can be improved. Earlier, on the 13th, the Financial Services Commission held the 2nd meeting of the Policy and Global Finance Subcommittee of the Financial Development Council to discuss directions for improving the suspension system during licensing reviews.
The suspension system is designed to halt procedures during new licensing and major shareholder change approval reviews if ongoing lawsuits, investigations, or inspections are recognized to have a significant impact. However, since the financial authorities find it difficult to predict the outcomes of lawsuits and investigations when defendants, investigations, or inspections are ongoing, reviews are effectively delayed indefinitely, causing side effects and raising the need for improvements in the system’s operation.
The review proposal reported by the Financial Services Commission to the Financial Development Council includes three main points. First, to specify the criteria for suspending reviews according to each reason. Along with this, a mandatory periodic review of whether to resume the review was discussed to prevent prolonged suspension side effects. Another proposal was to conduct the review based only on the facts revealed at a certain point after a set period following the suspension.
If the last proposal among these is adopted, companies like Samsung Card and Gyeongnam Bank are expected to have a path to undergo MyData business licensing reviews. Currently, Samsung Life, the major shareholder of Samsung Card, has received a severe disciplinary action from the Financial Supervisory Service, but the Financial Services Commission’s resolution has not been finalized. BNK Financial Group, the major shareholder of Gyeongnam Bank, is undergoing a second trial.
The problem is that Kakao Pay, which is receiving the most attention, finds it difficult to find a viable solution. Kakao Pay cannot even confirm whether legal sanctions are being imposed on its second-largest shareholder, Alipay Singapore Holding from China, so its review status remains ‘in progress.’
An industry insider said, "In a situation where investments from overseas companies are increasing, the situation of Kakao Pay inevitably attracts attention," adding, "The key is whether the authorities can make a flexible decision."
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