Kim Joo-hyun, Financial Services Commission Chairman, "Reexamining Existing Regulations Without Sanctuary to Utilize Technological Changes in the Financial Industry"

[Asia Economy Reporter Song Hwajeong] Kim Juhyun, Chairman of the Financial Services Commission, stated that the financial industry will fundamentally review existing regulations without any inviolable sanctuaries to actively accept and utilize technological changes.

Chairman Kim made these remarks during his welcoming speech at the opening ceremony of the '4th Korea Fintech Week 2022' on the 28th. He said, "The Korean fintech industry has grown significantly in terms of the number of companies and employees, and its fields of entry have deeply penetrated daily life, including simple payments, remittances, asset management, and insurtech. Fintech has now become something 'indispensable' rather than just 'convenient to have.' However, among 94 fintech unicorns, Korea has only one, and the industry ranking dropped from 18th in 2019 to 26th last year. Looking at fintech industry statistics makes us reflect on whether the fintech ecosystem is healthy and functioning smoothly."

Chairman Kim pointed out, "The fintech industry faces a competitive landscape with the expansion of platform-based big tech and the digital acceleration of financial companies, difficulties in attracting investment due to global tightening, and ongoing concerns about rigid regulations in the financial sector." He pledged to respond more agilely in four aspects as the reality facing the fintech industry rapidly changes: ▲ institutional enhancement from a business perspective to actively utilize the financial regulatory sandbox for startups and small fintech companies ▲ inspection and strengthening of financial support infrastructure for fintech companies' investment attraction and fundraising ▲ expansion of regulatory flexibility regarding artificial intelligence (AI), cloud, and network separation ▲ and active promotion of digital regulatory reform across the financial industry by fundamentally reviewing existing regulations without inviolable sanctuaries.

Accordingly, the Fintech Support Center will operate a 'designated manager system' that matches and supports legal, accounting, and business experts to provide comprehensive management consulting to startups lacking experience and human and material infrastructure, supporting the commercialization of innovative ideas from start to finish. To facilitate fintech companies' investment attraction and fundraising, the status of guarantees and loans from policy financial institutions will be reviewed, and necessary institutional improvements will be considered. Additionally, cloud utilization will be enhanced by differentiating usage procedures according to the importance of tasks, and exceptions to network separation will be expanded for development and testing areas unrelated to financial transactions and not handling customer or transaction information. The introduction of a small license linked to the pilot operation of financial innovation services, requested by the fintech industry, will also be actively reviewed.

Chairman Kim emphasized, "We will continue efforts to listen directly to difficulties in the field during policy implementation and find solutions on-site to create a policy environment where financial innovation can be sustained and circulate positively."

The Korea Fintech Week 2022, which opened that day, is a global expo involving domestic and international fintech companies and experts, held simultaneously online and offline for three days until the 30th. This expo is the first fully public event in three years since COVID-19, featuring various programs such as fintech company services, related seminars, consultations, and experiences on-site. It also provides opportunities to expand investment attraction through connection programs between fintech companies and investors and serves as a stepping stone for collaboration. Consultations on fintech-related jobs and recruitment information for fintech companies, financial companies, and financial public enterprises are also conducted for university students and job seekers.