"Will Burden the People"… Financial Labor Union Raises Opposition to the Electronic Financial Transactions Act

[Asia Economy Reporter Kiho Sung] The Financial Labor Union is raising opposition voices regarding the amendment to the Electronic Financial Transactions Act (EFTA). A related roundtable discussion is scheduled for next week, so the controversy is expected to continue for the time being.

According to the National Financial Industry Labor Union on the 9th, the Local Banks Labor Union Council, composed of labor unions from Busan Bank, Gyeongnam Bank, Daegu Bank, Gwangju Bank, Jeonbuk Bank, and Jeju Bank, issued a statement on the 7th urging the suspension of the EFTA amendment, claiming it could deepen the outflow of regional funds overseas.

In the statement, the union pointed out, "If the 'Comprehensive Payment Settlement Operator' license is introduced through the EFTA amendment, large-scale private funds will move to big tech companies, further accelerating the outflow of regional funds," adding, "As a result, regional finance and the regional economy will suffer significant damage. This directly contradicts the government's policy of national balanced development as a state policy direction."

The union argued, "This EFTA amendment, which grants many powers to big tech companies without any regulation, will clearly become a significant burden on the public in the future. Stop the amendment discussions immediately."

The EFTA amendment mainly includes the introduction of comprehensive payment settlement operators, payment instruction transmission business (MyPayment), and the allowance of small-scale deferred payments for simple payments. If the bill passes, big tech companies will be able to open their own accounts to transfer and settle funds. Small-scale deferred payments will also be allowed, enabling them to conduct credit card business, which under the Specialized Credit Finance Business Act can only be done by credit card companies, without a license.

The National Financial Industry Labor Union has already expressed opposition to the EFTA amendment. Earlier this year, the Financial Labor Union held a press conference stating, "Granting free rides and regulatory arbitrage to big tech companies undermines the principle of 'same function, same regulation,'" and warned, "Allowing fintech companies, which are not properly supervised, to enter the financial industry could trigger a second card crisis or a second private equity fund incident."

The Financial Labor Union is also planning a related roundtable discussion. On the 11th, the Financial Labor Union will hold a roundtable titled 'Thoroughly Investigating the Electronic Financial Transactions Act Amendment' at the Kyungsilyeol Auditorium. At this event, Professor Sangin Park from Seoul National University Graduate School of Public Administration will serve as the chairperson for the discussion.