Amendment to the Enforcement Decree of the Specialized Credit Finance Business Act Passed at the Cabinet Meeting
Financial Services Commission "Actively Reviewing and Promoting Additional Institutional Improvement Measures"
Effective from the 10th
Credit card companies and other specialized credit finance businesses now have the opportunity to enhance financial accessibility and inclusion for small corporations by utilizing expanded data.
On the 3rd, according to the Financial Services Commission, the amendment to the Enforcement Decree of the Specialized Credit Finance Business Act, which adds corporate information inquiry services under the "Act on the Use and Protection of Credit Information" as a concurrent business for specialized credit finance companies such as credit card companies, was approved at the Cabinet meeting.
Credit card companies have been performing various data utilization tasks as concurrent businesses, such as personal credit information management and credit evaluation for individual business owners, based on diverse financial and non-financial data accumulated through their payment functions.
However, corporate information inquiry services, which involve collecting, analyzing, and providing credit information of corporate and legal entity credit information subjects, were not included as concurrent businesses under the current Enforcement Decree of the Specialized Credit Finance Business Act, and thus could not be conducted. Accordingly, the Financial Services Commission has enabled specialized credit finance companies to engage in corporate information inquiry services as concurrent businesses through the amendment of the Enforcement Decree.
With this amendment, specialized credit finance companies are expected to be able to conduct various data-based operations. Jangsoo Shin, Director of the Small Finance Division, explained, "This will support the advancement of corporate credit evaluation in the financial sector, and it is expected to improve financial accessibility and inclusion for small corporations."
In addition to this amendment, the Financial Services Commission plans to actively review and promote additional institutional improvements to activate data-based operations of specialized credit finance companies. This Enforcement Decree will take effect from October, the date of its promulgation.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
