Support Measures Included
Attention on Future National Assembly Discussions
Kim Han-jung, Democratic Party of Korea / Photo by Yoon Dong-joo doso7@
[Asia Economy Reporter Kiho Sung] The National Assembly is pushing for an amendment to the Electronic Financial Transactions Act to strengthen the security of electronic financial transactions. The bill sets security standards for electronic financial transactions and includes provisions for financial authorities to support security enhancements. The related industry also welcomes the move, drawing attention to the upcoming discussions in the National Assembly.
According to political circles on the 28th, Kim Han-jung, a member of the Democratic Party of Korea, recently introduced the amendment bill to the Electronic Financial Transactions Act containing these provisions. The bill stipulates that when financial companies develop new electronic financial transaction methods or change the methods they use, they must comply with the requirements prescribed and announced by the Financial Services Commission as necessary for electronic financial development security. This essentially establishes a kind of security standard for electronic financial transactions.
Along with this, the Financial Services Commission is explicitly authorized to undertake projects such as ▲research on electronic financial development security technologies and fostering human resources to build a foundation ▲support for activating electronic financial development security for financial companies ▲and other projects prescribed by Presidential Decree to advance the field of electronic financial development security.
A representative from Rep. Kim’s office explained, "The goal is to establish high-level electronic financial transaction security regardless of the size of the financial company," adding, "However, since this could be perceived as a new regulation, the bill also includes provisions for the financial authorities to actively support reaching the related standards."
The related industry is welcoming the bill’s introduction. In particular, they expect it to significantly reduce the costs of strengthening security while establishing a system above a certain level. According to data submitted to Democratic Party member Min Hyung-bae by the Financial Supervisory Service, as of the end of July this year, the ratio of security investment to sales for four platforms?Kakao Pay, Naver Financial, Toss, and NHN Payco?was 2.41%, which is 8.6 times higher than the bank average of 0.84%.
A fintech industry official said, "If this bill passes, it will strengthen electronic financial transaction security and reinforce the obligation to comply with security during the development stage, reducing security risks," emphasizing, "Since it is necessary to increase the responsibility and expertise of financial institutions and electronic financial operators regarding security, continuous support must be expanded."
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