Seungbeom Ko "Supporting Collaboration Between Financial Companies and Fintech... Considering Expansion of Ancillary Tasks"

Rapid Advancement of Electronic Financial Transactions Act Amendment and Proposals to Ensure Business Opportunities for Fintech Companies

[Asia Economy Reporter Park Sun-mi] Ko Seung-beom, Chairman of the Financial Services Commission, announced that to revitalize fintech investment by financial companies, support will be provided for collaboration between financial companies and fintech firms, and incentives such as expansion of ancillary business through regulatory sandboxes and extension of designated agent periods will be granted.

On the 9th, Chairman Ko held a meeting at D.CAMP at 9 a.m. with fintech industry representatives, related financial companies, and private experts to discuss the basic direction of fintech industry innovation and specific promotion strategies.

Chairman Ko mentioned that as fintech grows, services that integrate various financial services into a single platform will become common, and emphasized the need to enhance synergy through collaboration such as investment or consignment of tasks between existing financial companies and fintech firms. He explained, "In this context, to revitalize fintech investment by financial companies, we will establish an institutional foundation by improving the current 'Fintech Investment Guidelines,' and for new financial services through collaboration between financial companies and fintech, we plan to consider expanding ancillary business through regulatory sandboxes."

He also stated that an institutional foundation for fintech innovation will be promptly established. Chairman Ko said, "Regarding online non-face-to-face financial services, consumer protection principles will be maintained, but we will seek reasonable regulatory improvements so that innovative functions such as customized comparison and recommendation can be realized. We will also continue to improve the system so that MyData, launching next year, can become a customized ‘data storage and management platform.’"

Regarding concerns about consumer risks that may arise during fintech’s growth process, he said, "To protect the assets of prepaid electronic payment users, we will promote institutional improvements such as external deposit of user deposits, and prepare reform plans so that financial security, including network separation and cloud regulations, can harmonize financial companies’ autonomy and user protection."

On this day, fintech industry and financial sector officials made focused requests to the financial authorities for ▲ swift amendment of the Electronic Financial Transactions Act to introduce comprehensive payment service providers, ▲ guarantee of business opportunities for fintech companies, and ▲ expansion of the scope of work for existing financial companies related to digital innovation. They also requested active support from the financial authorities to ensure institutional improvements and regulatory adjustments are made.