[Exclusive] FSS Governor Lee Chanjin Requests First Meeting with CEOs of Naver, Kakao, Toss, Coupang, and Baemin

First-Ever Meeting with Big Tech CEOs, Not Simple Payment Subsidiaries
Focus Expected on Strengthening Consumer Protection for AI and Digitally Vulnerable Groups
Industry on Edge Over Possible Discussion of Delivery App and Simple Payment Fee Issues

The Financial Supervisory Service, under the leadership of Governor Lee Chanjin, will hold a meeting with CEOs of major big tech companies on September 11. Invitations have been extended to the heads of Naver, Kakao, Toss (Viva Republica), Coupang, and Baedal Minjok (Woowa Brothers). This marks the first time the Governor of the Financial Supervisory Service has directly summoned CEOs of core information technology (IT) affiliates, rather than those of electronic financial subsidiaries.

Lee Chanjin, Governor of the Financial Supervisory Service, is speaking at a press conference after delivering his inaugural speech at the headquarters in Yeouido, Yeongdeungpo-gu, Seoul on the 14th. Photo by Moon Chaeseok

According to the financial supervisory authorities and the IT industry on August 27, the Financial Supervisory Service recently requested the attendance of Choi Sooyoun, CEO of Naver; Jeong Shina, CEO of Kakao; Lee Seunggun, CEO of Viva Republica; Park Daejoon, CEO of Coupang; and Kim Beomseok, CEO of Woowa Brothers, at the meeting scheduled for September 11. An official from the Financial Supervisory Service stated, "It is true that we have inquired about the availability of the five companies," adding, "The official participants, venue, and agenda have not yet been finalized."

If the meeting proceeds as planned, it will bring together the heads of big tech companies just 29 days after Governor Lee's inauguration. This is more than twice as fast as former Governor Lee Bokhyun, who held a similar meeting 80 days after taking office. The positions of the participants and the scale of the companies involved have also been elevated compared to previous meetings.

At the big tech and fintech meeting held by former Governor Lee Bokhyun on August 30, 2022, participants included Lee Geunju, Chairman of the Korea Fintech Industry Association; Byun Younghan, Director of the Korea Fintech Support Center; Park Sangjin, CEO of Naver Financial; Shin Wonkeun, CEO of Kakao Pay; Lee Seunggun, CEO of Viva Republica (representing big tech); Jung Hyunkyung, CEO of Musicow; Kim Jungeun, CEO of Smallticket; Kim Jonghyup, CEO of ICONLOOP; Lim Jongyoon, CEO of AIMs; Ye Changwan, CEO of Kasa Korea; and Kim Minjeong, CEO of Crepass Solution. Most participants were from IT group affiliates or startups.

This time, the direct participation of the parent company CEOs gives the meeting a different significance.

The five companies that received the invitation have begun coordinating their CEOs' schedules. While none of the five have yet confirmed attendance for September 11, they have responded that they are preparing for the meeting, as the Financial Supervisory Service has indicated its intention for all CEOs to attend.

Industry insiders expect that, as this is the first meeting, there will be brief introductions, a sharing of opinions on current issues, and a discussion of challenges faced by the industry. Anticipated agenda items include strengthening internal controls over artificial intelligence (AI) algorithms and delivering messages about enhancing consumer protection for digitally vulnerable groups.

An official from the Financial Supervisory Service commented, "Since the economic policy focus of the Lee Jaemyung administration is AI, and the new Governor emphasizes consumer protection, it is expected that these topics will be mentioned, even if only briefly."

There is also speculation that issues related to big tech companies' collaborative finance, including the cap on delivery app fees-a key policy initiative of the Lee Jaemyung administration-may be discussed. However, as the fee structures for card payments and prepaid electronic payment methods differ, some argue that it will be difficult to conduct an in-depth discussion on the fee issue within a short timeframe.

Previously, the Financial Services Commission announced in a report to the National Policy Planning Committee in June that it would strengthen the disclosure system for simple payment fees and expand the scope of companies required to disclose such information. All five companies participating in the meeting with Governor Lee own simple payment affiliates (Naver Pay, Kakao Pay, Viva Republica and Toss Payments, Coupang Pay, Woowa Brothers) that are subject to mandatory fee disclosure.

An IT industry official stated, "The fact that the Financial Supervisory Service has requested the participation of Baemin and Coupang may indicate that the cap on delivery app fees and the simple payment fee structure will be on the agenda, creating a tense atmosphere."

Meanwhile, the Financial Supervisory Service will continue its series of meetings with banks (August 28), insurance companies (September 1), savings banks (September 4), securities companies (September 8), and big tech companies (September 11). The meeting with the credit finance industry will be held on Tuesday, September 16.