Financial Services Commission: "Fintech Winter... We Will Improve Regulations"

Meeting between Financial Services Commission and Fintech Held on the 27th

[Asia Economy Reporter Sim Nayoung] On the 27th, the Financial Services Commission held a meeting with early-stage and small-to-medium fintech companies to listen to 'proposals on financial regulations and innovative services' aimed at revitalizing fintech financial services. This meeting was chaired by Kwon Daeyoung, a member of the Financial Services Commission who served as the inaugural head of the Financial Innovation Planning Group in August 2018.

Fintech companies have led financial innovation by enhancing convenience for financial consumers and injecting new momentum into the financial industry. However, due to recent increases in interest rates and growing uncertainty in the economic and financial environment, concerns have arisen about difficulties in attracting new investment funds and challenges faced by the fintech sector.

Fintech companies attending the meeting proposed improvements in financial regulations to strengthen financial platform services and measures to promote innovative financial services.

They also raised various demands for regulatory improvements to enhance work efficiency and financial service convenience, such as easing network separation regulations for financial companies, supporting overseas expansion, and recommending customized financial products using health information.

Additionally, they suggested improvement tasks for the active introduction of new financial services, including expanding the designation of innovative financial services and linking the legalization of regulatory sandboxes.

Kwon Daeyoung, a member of the Financial Services Commission, stated, "In difficult economic conditions marked by weakened investment sentiment, the fintech industry is also facing management difficulties such as securing funds, which is referred to as a so-called 'funding ice age.' It is necessary for policy authorities to take an interest and provide support through regulatory improvements, expansion of innovative financial services, and support for investment and operating funds."

The Financial Services Commission will start with the first meeting today and hold a second meeting next month to review the current status and difficulties related to investment attraction and operating and business funds in the fintech industry. Based on the results of the first and second meetings, a policy meeting for the sustainable growth of the fintech industry is planned to be held between November and December 2022.