The Largest Industry Council with Over 100 Participating Companies
"Discussion on a Broad Framework"... Also Mentioning the Electronic Financial Transactions Act
The electronic finance industry, which has been buzzing due to the Merge Point incident and simple payment fees, is forming a council. More than 100 electronic finance operators will join, making it the largest council within the Fintech Industry Association. It is expected to express opinions on industry issues, including the amendment of the Enforcement Decree of the Electronic Financial Transactions Act.
According to a comprehensive report by Asia Economy on the 22nd, the Fintech Industry Association (Finsanhyup) will launch the "Electronic Finance Operators Council" on the 6th of next month. The inaugural council chairman will be Lee Geun-ju, president of Finsanhyup and CEO of Hanpass. Considering the symbolic significance of the council, Lee will serve as the first chairman, and later, the second chairman will be elected by gathering opinions from member companies of the council. It has been confirmed that more than 100 companies related to electronic finance, including simple payment (pay), payment settlement, and electronic payment gateway (PG), will participate in this council.
The Electronic Finance Operators Council is expected to be the largest among the industry-specific councils under Finsanhyup. Except for councils targeting the entire fintech (finance + technology) industry, such as those for personal information protection, anti-money laundering, and information security, there are sector-specific councils within Finsanhyup, including the Token Securities Council and the Digital Asset Infrastructure Council. The Token Securities Council was launched in July last year with 18 member companies related to fractional investment and blockchain, and Shin Beom-jun, CEO of Bysell Standard, was elected as the inaugural chairman. The Digital Asset Infrastructure Council started in March with 12 blockchain technology companies. The inaugural chairman was Jung Gu-tae, CEO of Infinite Block.
This council plans to function as a communication platform among electronic finance operators. It is expected to share current issues, strengthen exchanges, and facilitate active networking. Additionally, it will serve as a channel to collect on-site opinions on policy directions and establish communication channels with financial authorities and the National Assembly.
A Finsanhyup official said, "There was no channel for electronic finance operators to gather and discuss issues or communicate," adding, "Within the association, there were discussions among member companies about the need for such a council." He also stated, "The council may mention legal systems and the need for self-regulation. We are thinking on a broad scale."
An industry insider from the electronic finance sector said, "Through the council, we will respond to the amendment of the Enforcement Decree of the Electronic Financial Transactions Act and continue follow-up work after its implementation in September," adding, "We expect to respond continuously to other electronic finance industry policies and issues as they arise."
According to the amendment of the Enforcement Decree of the Electronic Financial Transactions Act recently announced for legislative notice by the Financial Services Commission, pay companies cannot contract with companies that are not registered as PG operators, and they are obligated to verify whether the contracting company is registered as a PG operator during the contract process. This is interpreted as a provision that effectively forces distributors and franchise headquarters to register as PG operators. It is known that some distributors have mentioned terminating pay contracts to avoid penalties for violations of the Electronic Financial Transactions Act.
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