Big Tech Leaders, Financial Holding Companies, and Banks Attend
Interest Grows Over Whether 'Same Function, Same Regulation' Discussions Will Continue
[Asia Economy Reporter Kiho Sung] Financial Services Commission Chairman Ko Seung-beom is set to hold his first meeting with major big tech (large information technology companies) representatives as early as next week since taking office. With financial authorities recently emphasizing the principle of ‘same function, same regulation,’ there is growing interest in whether concrete discussions related to regulation will emerge.
According to the financial sector on the 26th, Chairman Ko is planning to hold a ‘Digital Innovation Finance Roundtable’ next week and is coordinating schedules with related companies. At this roundtable, big tech company representatives expected to attend include Choi In-hyuk, CEO of Naver Financial, and Lee Seung-geon, CEO of Viva Republica (Toss). Ryu Young-jun, CEO of Kakao Pay, will attend in his capacity as chairman of the Korea Fintech Industry Association.
Chairman Ko plans to listen to and communicate with industry representatives about their requests and difficulties through the roundtable. In particular, key issues in digital finance such as platformization, data innovation infrastructure construction, financial innovation through artificial intelligence (AI), and digital trust will be discussed in one place. The industry expects that the results of this roundtable could be reflected in the announcement of the main directions for the ‘Digital Innovation Finance Development Strategy’ at the end of this year and in next year’s work plan.
Above all, there is keen interest in what support policies Chairman Ko will propose for the fintech industry. Since taking office, he has held a series of meetings with financial holding companies, banks, insurance companies, and card companies, presenting customized support policies for the industry. The most critical issue is expected to be fair competition among big tech companies, which has recently become controversial. Chairman Ko has emphasized the ‘same function, same regulation’ principle for big tech companies since shortly after his inauguration. In a roundtable with financial holding companies last September, he stated, "(The principle of same function, same regulation) is necessary from the perspective of protecting financial consumers and financial stability," but also said, "It does not mean fostering fintech or revising policies that the FSC has been implementing."
On the other hand, fintech companies argue that this policy is unreasonable. Jang Sung-won, Secretary General of the Fintech Industry Association, emphasized, "It is unreasonable to apply the same regulation simply based on the surface ‘function’ when the structure of profits and benefits guaranteed differ according to the characteristics of the license." He also said, "It is essential to revise the Electronic Financial Transactions Act to reflect a system and regulatory framework reform that aligns with digital finance development, so that electronic financial operators can comply with and be protected under ‘same license, same regulation.’"
Moreover, since the roundtable will include not only big tech but also financial holding companies, commercial banks, insurance companies, card companies, securities firms, insurtech, fintech security solution providers, associations, and related organizations, there is speculation that it will be difficult for the fintech industry’s active opinions to be fully reflected.
Meanwhile, separate from this roundtable, the FSC is planning another meeting to support fintech growth. This meeting, mainly involving small and startup fintech companies, was originally scheduled for the 25th but has been postponed to mid-next month due to the recent COVID-19 situation.
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