Jung Eun-bo Meets Big Tech Like Kakao Pay... What Will They Talk About?

The Financial Supervisory Service to Hold 'Financial Platform Meeting' on the 26th
Kakao Pay, Naver Financial, Viva Republica Expected to Attend
Discussion on Same Function, Same Regulation, and Consumer Protection Measures Anticipated

Jeong Eun-bo, Governor of the Financial Supervisory Service, is delivering a congratulatory speech at the "12th Asia Economic Finance IT Forum" held on the 24th at Lotte Hotel in Jung-gu, Seoul. Photo by Jang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Jin-ho] Jung Eun-bo, Governor of the Financial Supervisory Service (FSS), will meet with key big tech (large information technology companies) leaders such as Kakao Pay and Naver Financial this week. Since he has emphasized the importance of “same function, same regulation” between big tech and traditional financial firms, discussions are expected to focus on resolving the so-called “tilted playing field” controversy.

According to financial authorities on the 24th, Governor Jung will hold a “Financial Platform Meeting” on the 26th at the Bankers Club in Jung-gu, Seoul. Major big tech companies including Naver Financial, Kakao Pay, and Viva Republica, as well as Shinhan, KB, and Hana Financial Group, are expected to attend.

A financial authority official explained, "This will be an opportunity to discuss the future regulatory direction for financial platforms and communicate on key issues recently faced by financial platform companies and financial institutions."

The meeting is expected to focus heavily on fair competition issues such as “same function, same regulation” applied to big tech companies. Since last year, financial authorities have emphasized creating a fair competitive environment to prevent unreasonable regulatory arbitrage between the financial sector and big tech.

Since his appointment, Governor Jung has taken a tough stance on big tech’s entry into financial services. Following his New Year’s address and a fintech industry meeting on the 20th, he told reporters, "Concerns about a tilted playing field between big tech and traditional financial firms continue to be raised," adding, "We will continue policy and supervisory efforts to ensure that the same regulations apply to the same functions in principle."

He is also expected to address controversies surrounding major big tech companies such as Kakao Pay and Naver Financial. He stressed that consumer protection principles must be upheld in providing digital financial services. Recently, Kakao Pay faced controversy over executives’ stock option “cash-out” incidents. Governor Jung has expressed the need to improve the stock option system. In the case of Naver Financial, a customer information leak occurred during the provision of MyData services. The FSS is currently investigating the incident and reviewing Naver Financial’s security systems.

Another point of interest is whether discussions will cover the refinancing loan platform, which was halted due to conflicts between big tech and financial firms. Since financial authorities plan to relaunch the refinancing loan platform this year, there is a possibility that efforts to narrow conflicts will be discussed at the meeting.

Meanwhile, Governor Jung is also expected to listen to difficulties arising from the platformization process of big tech companies and prepare measures to ease unnecessary regulations. At the fintech industry meeting on the 20th, he said, "We will pursue a balanced approach between supporting innovative growth and protecting consumers, and help new technologies and players enter the market to foster fair competition."

A financial sector official said, "Since conflicts between big tech, the major platform players, and traditional financial firms continue, this meeting will be an opportunity to hear both sides and for Governor Jung to directly announce the supervisory stance of the authorities for this year."