Financial Services Commission Holds Meeting on Overseas Expansion of Credit Card Companies
There has been a call for specialized credit finance companies (such as card and capital companies) actively expanding overseas to diversify their destinations beyond the Association of Southeast Asian Nations (ASEAN).
On the morning of the 14th, the Financial Services Commission held a 'Specialized Credit Finance Companies Global Expansion Activation Meeting' at the Credit Finance Association in Jongno-gu, Seoul, chaired by Vice Chairman Kim So-young. This meeting was part of a sector-by-sector relay seminar for the globalization of the financial industry.
In her opening remarks, Vice Chairman Kim said, "Specialized credit finance companies are at a point where they need to consider new growth engines amid increasingly fierce competition and highly volatile economic and financial conditions. In particular, digitalization is expanding the possibility of digital payment and fund supply even in countries with insufficient financial infrastructure, and we expect our specialized credit finance companies to play a role in emerging markets that will newly develop."
At the meeting, advice was given on the need for specialized credit finance companies to expand their overseas business areas. Oh Seong-heon, partner lawyer at the law firm Okims, presented on the licensing systems for specialized credit finance businesses in ASEAN countries (Vietnam, Cambodia, Myanmar, Indonesia) where these companies mainly operate, stating, "The mutual dispatch program between the Financial Supervisory Service and the Indonesian Financial Services Authority scheduled for the second half of this year and other exchanges between financial authorities are expected to help domestic financial companies resolve operational difficulties when expanding overseas."
He added, "The ASEAN market has been regarded as a land of opportunity due to increased use of payment markets and income growth, which has concentrated overseas expansion so far. Going forward, it is time to consider diversifying overseas expansion that has been focused on the ASEAN market."
BC Card, KB Kookmin Card, and BNK Capital each introduced their global expansion cases. BC Card shared the process and achievements of supplying the K-payment system to Southeast Asian and Central Asian countries, BNK Capital discussed strategies for successful overseas subsidiaries, and KB Kookmin Card shared experiences of acquiring local financial companies and successfully settling in.
Additionally, the specialized credit finance industry requested that authorities actively support global expansion and work on simplifying regulations such as reporting and disclosure by domestic financial authorities for overseas investments, as well as discuss regulatory improvements with overseas local financial authorities. Professor Ahn Soo-hyun of Hankuk University of Foreign Studies said, "When entering countries at the growth stage, it is important to focus on businesses that can solve the difficulties of local customers. Policies supporting domestic financial companies' overseas expansion need to be backed to enable more active exchanges and investments."
Vice Chairman Kim stated, "Last month, at the overseas expansion site, I showed the will to become a direct salesperson to negotiate with overseas financial authorities and promote our financial industry and companies for the successful overseas expansion of our financial companies," adding, "I will sincerely listen to the opinions from the field today and continue to spare no effort in support."
Meanwhile, the Financial Services Commission plans to hold a comprehensive meeting involving all financial sectors later this month based on the discussions from the sector-by-sector relay seminars conducted so far, and intends to prepare policy support measures related to the globalization of the financial sector.
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