The Next Fintech Association President Election Issues... Electronic Financial Transactions Act, Electronic Financial Association, and Regulations Are Key

Remaining Tasks Still Pile Up
Presenting a Vision Seems to Be the Key

From the left in the photo: Lee Hyemin, CEO of Pinda; Jeong Inyoung, CEO of December & Company; Lee Geunju, Director of the Korea Simple Payment Promotion Agency.

[Asia Economy Reporter Kiho Sung] The election for the new chairman of the Korea Fintech Industry Association, which leads 344 fintech companies, has been confirmed as a three-way race. As the fintech industry rapidly grows, the status of the chairman has also risen, intensifying the competition. Especially since numerous challenges remain in the fintech sector, the election outcome is expected to be determined by the vision each candidate presents regarding these issues.

According to the financial sector on the 16th, three candidates recently applied for the chairman position of the Fintech Industry Association: Lee Hye-min, CEO of Finda; Jung In-young, CEO of December & Company; and Lee Geun-joo, President of the Korea Easy Payment Promotion Agency. Once the candidates are officially announced on the 19th of this month, the official campaign period will begin. From the 20th to the 26th, the voter list will be finalized, and registration for mobile voting will take place. The final selection will occur at the regular general meeting and executive election on the 17th of next month.

The Fintech Industry Association is a private organization that promotes the fintech industry, facilitates external cooperation, proposes policies, conducts research, operates permanent fintech committees, and supports member companies. Recently, with the rapid development of the fintech industry, its role as a communication channel regarding regulations has been strengthened. In particular, the government and political circles recognize the chairman of the Fintech Industry Association as a representative figure of the fintech sector and engage in discussions on major issues together. This is an advantage for the company that produces the chairman.

Financial authorities also invite the chairman of the Fintech Industry Association to major policy discussions to listen to the industry's voice. Political circles frequently pursue official and unofficial meetings with the chairman to gather opinions for legislative activities, indicating that the chairman's communication role is expected to become even more important.

The key issue is the vision for the fintech industry's challenges. First and foremost is the passage of the amendment to the Electronic Financial Transactions Act, a long-standing demand of the fintech sector. The amendment bill did not even begin discussion in the National Assembly last year and has carried over into this year. However, with political schedules such as the presidential and local elections packed in the first half of this year, the fate of the bill remains uncertain.

If the bill passes, preparations must begin for establishing the Electronic Financial Association. The amendment includes provisions for establishing an association for electronic financial business operators such as prepaid and debit service providers. The tentative Electronic Financial Association is likely to be based on the Fintech Industry Association, which currently has the most participants from related businesses. The future of both associations could significantly change depending on the direction the new chairman proposes during this process.

Additionally, the fintech industry's demands, such as activating MyData services and addressing network separation regulations, remain challenges that must be negotiated with existing sectors, political circles, and the government.

Moreover, the recently heated debate over "same function, same regulation" is expected to be a major topic throughout the chairman's term. The existing financial sector emphasizes this point and is calling for stricter regulations on the fintech industry. The government, which had been relatively friendly, is gradually shifting toward regulation, making the ability to persuade financial authorities and the existing financial sector a critical factor.