Press Releases - Financial Services Commission

Press Releases

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Jan 20, 2020

FSC to Work on Reforming Benchmark Interest Rates

FSC Vice Chairman Sohn Byungdoo presided over a task force meeting on reforming benchmark interest rates on January 20, 2020.In the wake of the rate-rigging scandal of the London Interbank Offered Rate (LIBOR) in June 2012, the international society has been working on reforms aimed at improving the accountability and transparency of benchmark interest rates.The FSC and the Bank of Korea (BOK) along with other public and private sector participants launched a joint task force in June 2019 to develop a new benchmark interest rate and risk free rate.During the meeting, Vice Chairman Sohn stated that the government and the financial industry should prepare for the expiration of LIBOR in 2022. Vice Chairman Sohn also said that the FSC will develop a new benchmark interest rate considering its effects on the financial markets and that it will also conduct an equivalence test with EU standards.* Please refer to the attached PDF for details.
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Jan 20, 2020

Government Prepares to Launch Asia Region Funds Passport in May

The government has revised the enforcement decree of the Financial Investment Services and Capital Markets Act and other relevant rules for the implementation of the Asia Region Funds Passport. The ARFP will be launched on May 27, 2020 after a 40-day of promulgation and screening of regulations.BACKGROUNDThe ARFP is a multilateral investment promotion initiative between the five member economies1 aimed at promoting cross-selling of publicly offered local funds in each other’s economies through standardized and streamlined registration process.The five member economies agreed to launch the ARFP at the APEC finance ministers’ meeting in September 2013. The members signed a memorandum of cooperation (MOC) in April 2016, and have worked on domestic legislative changes for the implementation.In November 2019, the Korean government completed the revision of the Financial Investment Services and Capital Markets Act, and has since worked on revising the relevant rules and regulations to reflect the details of the MOC.KEY PROVISIONS► REGISTRATION FOR LOCAL FUNDSPublicly offered local funds in Korea that meet the following requirements can apply to be registered as passport funds to be offered in overseas markets.► REGISTRATION FOR FOREIGN PASSPORT FUNDSForeign passport funds, by submitting registration statement, will be available for sale in Korea through a streamlined process.If an infringement of the MOC is found to have occurred by another member country, or the Korean funds face unfair sales restrictions overseas, the government may withdraw the privilege.Foreign passport funds sold in Korea will be subject to the same rules, regulations and investor protection measures as the local publicly offered funds.► REGULATION FOR INVESTOR PROTECTIONAll passport funds are subject to compliance audit regardless of the size of the fund. The fund managers are also required to report to both the home and the host countries about of the relevant information regarding funds,
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Jan 16, 2020

FSC Tightens Housing Loan Rules

The FSC unveiled measures to tighten housing loan rules, which will take effect on January 20, 2020.For high-priced homeowners whose property value is over KRW900 million, loan guarantees for jeonse1 will no longer be offered by Seoul Guarantee Insurance Company (SGI). The restriction on jeonse loan guarantees by public guarantee institutions, such as Korea Housing Finance Corporation (KHFC) and Korea Housing Urban Guarantee Corporation (HUG), has already been in place since November 11, 2019, pursuant to the measures unveiled on October 1, 2019.For individuals who receive jeonse loan guarantees from KHFC, HUG or SGI and purchase a high-priced home or become a multiple homeowner thereafter, the said jeonse loan will be collected.* Please refer to the attached PDF for details.
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Jan 15, 2020

FSC to Hold 2020 Korea Fintech Week

The Financial Services Commission will hold the 2020 Korea Fintech Week from May 28 to 30, 2020 at Dongdaemoon Design Plaza (DDP), Seoul to promote fintech and innovation in the financial industry. BACKGROUND The FSC hosted Koreas first global fintech expo in 2019, providing opportunities for networking and information sharing on the latest trends in fintech. The three-day event was attended by more than 10,000 people. Connecting fintech firms with both domestic and foreign investors, the 2019 Korea Fintech Week attracted about KRW30 billion worth of investment in fintech businesses. 2020 KOREA FINTECH WEEK This years Korea Fintech Week is aimed at supporting fintech scale-ups. It will be held under the theme of Fintech for Open Innovation. Centered on the governments policy to support fintech firms to scale up,1 the three-day expo will feature programs, such as seminars, special sessions, educational programs, idea contest exhibition, etc. REGISTRATION SCHEDULE Preliminary application for participation in the 2020 Korea Fintech Week will be available starting from the second week of April through www.fintechweek.or.kr/2020. For further information, please contact the Fintech Center Korea via email fintechweek@fintechcenter.or.kr or by phone +82-70-8873-9005, 9006. * Please refer to the attached PDF for details.
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Jan 14, 2020

Vice Chairman Attends FSB Steering Committee Meeting in Basel

FSC ViceChairman Sohn Byungdoo attended the Financial Stability Board (FSB) steeringcommittee meeting held on January 13, 2020 in Basel, Switzerland.The steeringcommittee meeting was attended by the heads of central banks and financialregulatory bodies from 20 countries and 11 international organizations, such asthe International Monetary Fund and the European Central Bank. The members helddiscussions on the risk assessment of non-bank financial institutions and waysto respond to risks associated with stablecoins.With regard to non-bankfinancial intermediaries, Vice Chairman Sohn stated that it is both timely andimportant to reassess the regulatory and supervisory framework of non-bankfinancial intermediaries given their size and global linkages. The recent trendof low interest rates may further aggravate risks in non-bank financialintermediaries due to a prevalent tendency toward high-risk, high-yield assets,Vice Chairman Sohn said.In this regard,the Korean government has been managing potential systemic risks in non-bankfinancial sectors by analyzing ‘activities’ and ‘entities’ separately, ViceChairman Sohn added.On regulatingstablecoins, the FSC agreed on the principle that a holistic approach to riskassessment should take place and that appropriate regulatory measures should beestablished prior to incorporating stablecoins in the global financial system.Considering the effects of stablecoins on monetary policy and anti-moneylaundering regime, the FSC reaffirmed the need to bolster cooperation withinternational organizations, such as the IMF and the Financial Action TaskForce.To preventregulatory arbitrage using stablecoins, Vice Chairman Sohn emphasized theimportance of increasing efforts for coordination between the developed anddeveloping countries.* Please refer to the attached PDF for details.
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Jan 09, 2020

Revised Credit Information Act Promotes Big Data and Information Security in Financial Sectors

The National Assembly passed the revision bill on the Credit Information Use and Protection Act on January 9, 2020. The revision bill provides a legal basis for the use of big data and the commercialization of new innovative services such as MyData businesses. It also includes measures to bolster information security, aimed at achieving a balance between the utilization of big data and information protection.The effective date for the revision is six months from the promulgation. If the announcement is made in January, the revision bill will go into effect after July, 2020. The FSC plans to revise relevant regulations prior to the effective date. In the process, the FSC will closely communicate with experts and stakeholders to listen to their opinions.FOLLOW-UP MEASURESIn order to continue to promote data economy, the FSC will work on a seamless implementation of the follow-up measures.► Work on successful launch of MyData businesses by operating working groups to establish standards for the scope of data usage, security authentication and authorization measures► Establish specific measures for information security by improving the current information usage and management evaluation system for financial institutions and upgrading the information use consent form► Set up big data infrastructures to support the creation of data ecosystem in financial sectors- Make available a wide array of quality data through CreDB, a financial big data open system operated by the Korea Credit Information Services since June 2019- Designate and operate data special institutions in Q3 2020 to support safe and efficient data conversion activities between companies- Establish a data exchange in Q1 2020 to promote data distribution through which non-identifiable data company information can be exchanged► Introduce a score-based credit rating system within this year to address problems arising from the current standardized credit evaluation system► Develop measures in Q1 2020 to
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Jan 09, 2020

Joint Response Unit on Financial Markets Holds First Meeting

FSC Vice Chairman Sohn Byungdoo presided over the first meeting of the joint response unit on financial markets on January 9, 2020 to assess the impact of the recent Middle East instability on domestic financial markets. The officials from the relevant ministries and public institutions as well as private sector experts attended the meeting.The following is a summary of Vice Chairman Sohn’s keynote address:BACKGROUNDThe escalating conflict between the US and Iran has led to increased financial market volatilities both at home and abroad. Following President Donald Trump’s announcement not to seek further military action against Iran, the US stock market closed higher yesterday with Dow Jones adding 0.56% and SP500 gaining 0.49%. However, there are lingering uncertainties and the government has been preparing contingency plans considering all possible scenarios.On January 8, the government set up a joint response system in order to more systematically respond to situations. Today’s meeting on financial markets is one of the five thematically organized units.1DOMESTIC FINANCIAL MARKETSThe domestic financial markets have fluctuated recently2 against the backdrop of the US-China first phase trade agreement and the recent instability in the Middle East. Despite increased market volatilities following the uncertainty in the Middle East, it is necessary to remain calm and prudent.Korea’s external soundness remains solid as the net foreign assets in debt instruments (USD 479.8 billion) and the foreign exchange reserves (USD 408.8 billion) posted record highs in 2019. Given a low level of Iranian funds in domestic stock markets, the possibility of capital flight or damages to the financial soundness1 Five joint response units: financial markets, international oil prices, real economy, overseas construction and overseas logistics2 KOSPI: Jan. 6 (2,155.1, -0.98%) → Jan. 7 (2,175.5, +0.95%) → Jan. 8 (2,151.3, -1.11%)USD/KRW FX rate: January 6. (1,172.1, +5.0 won)
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Jan 08, 2020

Government Closely Monitoring Financial Market Volatility in wake of Middle East Instability

The government set up a financial market monitoring system composed of the Financial Services Commission, the Financial Supervisory Service and the Korea Center for International Finance on January 6, and has been closely monitoring market volatility in the wake of the recent instability in the Middle East.The financial authorities will closely monitor market conditions and work to ensure market stability through contingency plans even in the case of rising market volatility in domestic markets.* Please refer to the attached PDF for details.
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Dec 23, 2019

Key Tasks in Financial Policy for 2020

The government introduced the 2020 Economic Policies on December 19, aimed at promoting innovation, restructuring the economy, pursuing inclusive growth and preparing the economy for the future. The Financial Services Commission will pursue the following key financial policies to support the government’s economic policies in 2020.KEY POLICY TASKSI. INCREASING FINANCIAL SUPPORT TO HELP THE ECONOMY REGAIN GROWTH MOMENTUM► Increasing funding for innovation-led growth drivers- Reform banks’ credit evaluation system to better evaluate corporate borrowers’ growth potential and technology(i) financing movable asset-based loans (including intellectual property) in the amount of KRW3 trillion by the end of 2020: introducing a lump-sum collateral system; providing incentives for banks; and establishing a new agency which purchases movable asset collateral or non-performing loans backed by movable assets to facilitate banks’ recovery of collateral(ii) introducing an integrated credit evaluation model starting with large banks to incorporate technology evaluation into banks’ credit evaluation system- Provide more than KRW10 trillion in facilities investment for SMEs as well as for major industries- Boost venture capital investments through capital markets by streamlining regulatory frameworks on private equity funds (PEFs) and easing net capital ratio (NCR) on securities firms investing in venture companies and SMEs.► Financing new and key industries- Support start-ups and scale-ups in high-tech and newly emerging industries(i) establishing the infrastructure to facilitate the use of financial and biohealth data in financial services (e.g. data exchange)(ii) increasing investment and incubating start-ups in 5G sectors(iii) providing government-backed loans and guarantees in the amount of KRW10 trillion in new growth sectors, such as system chips, biohealth and future car industries(iv) creating a Scale-up Fund worth KRW3.2 trillion to provide start-ups with growth
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Dec 23, 2019

FSC Reforms Non-Face-to-Face Customer ID Guidelines for Corporations and Foreigners

The Financial Services Commission unveiled a revised guideline for non-face-to-face customer identification on December 20, which is aimed at promoting online financial transactions by corporations and foreigners.BACKGROUNDThe non-face-to-face customer identification was first introduced to the banking sector in December 2015 for the purpose of improving consumer convenience. It was a major shift from the face-to-face identification method which had been in place for more than 20 years since the implementation of the real name financial transactions in August 1993. In February 2016, the non-face-to-face identification expanded to the non-banking sector (e.g. financial investment business and mutual banks).In January 2017, the FSC allowed corporations to open a new bank account though non-face-to-face customer identification; however, for corporations, only one representative could be identified through non-face-to-face identification method to prevent financial crimes, such as identify theft.Since its introduction, the number of new bank accounts opened through non-face-to-face customer identification has continued to increase. CHANGESFor corporations, opening a new corporate bank account by legal representatives, such as an employee or a board member, through non-face-to-face customer identification will be permitted. Legal representatives must present a power of attorney to financial companies for verification purposes.For foreigners, the alien registration card may be used to verify identity when opening a new bank account through non-face-to-face customer identification.SCHEDULEThe changes will go into effect on January 1, 2020, although each financial institution will determine whether and when to adopt non-face-to-face customer identification service for corporations. In January 2020, banks and financial investment sectors will draw up operational guidance in that regard.* Please refer to the attached PDF for details.
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Dec 19, 2019

FSC Designates 9 More Financial Solutions as 'Innovative Financial Services'

The FSC designated nine additional financial solutions as ‘innovative financial services’ to be included in its regulatory sandbox program on December 18. The FSC has thus far designated a total of 77 ‘innovative financial services’ since the launching of financial regulatory sandbox in April this year.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SERVICES’1. An over-the-counter bond trading platform providing retail investors with investment information about a variety of bonds, which will offer opportunities for small-amount investments and increase investor convenience (SK Securities)2. An automated stock lending borrowing transactions service, which is expected to contribute to the prevention of naked short-selling and failure to deliver securities (True Technologies)3. A customer oriented mobile appointment scheduling service using artificial intelligence, internet of things and big data, which provides information about the best time to set up an appointment at banks to avoid busy times while offering recommendations about financial products based on an analysis about customer’s consumption and investment patterns (NH Nonghyup Bank)4. A data analysis service using homomorphic encryption, which makes possible the coding of personal financial information stored in different financial institutions for analyzing purposes (Korea Credit Bureau)5. A digital real estate beneficiary distribution platform using a blockchain-based distributed ledger technology which offers retail investors an opportunity to make indirect investments in small-and medium-sized commercial real estate (Kasa Korea)6. A global money transfer brokerage service offering small-sum overseas remittance service providers an opportunity to easily find overseas partners, which is expected to ease consumer access and lower transaction costs (Hanpass)7. An online foreign stock gift card platform which allows small amount investment in shares of foreign stocks (Shinhan Investment)8 9. A sim
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Dec 18, 2019

Open Banking Service Launched for Banks and Fintech Businesses

The Financial Services Commission co-hosted a launch event for open banking service with the Korea Financial Telecommunications Clearings Institute on December 18.Open banking service was pilot launched in Korea on October 30 with participation by 10 banks. Beginning today, open banking will be available for a total of 16 banks and 31 fintech businesses, as more and more fintech firms are expected to join in the future.FSC Chairman Eun Sung-soo delivered congratulatory remarks at the event in which he emphasized the importance of openness along with efficiency and stability in payments sectors.Since its pilot launch on October 30, more than 3 million people have registered more than 7 million accounts through open banking.Chairman Eun stated that open banking has become more than simply a payment system and has emerged as a key financial infrastructure, bringing tectonic shifts in the financial industry. Open banking service in Korea provides wire transfer functions in addition to the account checking function.In order to continue to promote innovative financial solutions through open banking, Chairman Eun said that the government will establish legal foundations through revision of the Electronic Financial Transactions Act while expanding the scope and function of open banking service.Chairman Eun also emphasized the importance of ensuring safety and security in payments sectors in order to guarantee trust and stability in our financial payment infrastructures.* Please refer to the attached PDF for details.
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Dec 16, 2019

FSC Chairman Discusses Government Plans to Curb Overheating in Housing Prices

FSC Chairman Eun Sung-soo held talks on tightening mortgage regulations to curb overheating in housing prices on December 16. Chairman Eun urged careful preparation and coordination from all financial regulators as some of the newly introduced measures, such as a ban on mortgage lending for high-priced homes, will go into effect beginning tomorrow. Chairman Eun also underscored the importance of both micro- and macro-prudential management in our financial system.KEY MEASURESI. PROHIBIT MORTGAGE LOANS ON HIGH-PRICED HOMESThe government will prohibit mortgage loans on houses valued over KRW1.5 billion in government-designated speculative areas.II. STRENGTHEN MORTGAGE LENDING RESTRICTIONS IN SPECULATIVE AREASFor properties valued over KRW900 million in speculative areas, a loan to value (LTV) ratio of 20 percent will be applied for values in excess of KRW900 million, while a 40 percent LTV ratio will continue to apply for amounts up to KRW900 million.In addition, the government will gradually bring down debt service ratios (DSR) to 40 percent in all financial sectors by the end of 2021 in order to prevent unsecured personal loans from being diverted into home purchases.For individuals who own a single home and subsequently purchase a second home and for non-homeowners who purchase a property valued over KRW900 million, the current requirement to sell existing property and move into the newly purchased home within 2 years will be reduced to 1 year.III. IMPROVE MANAGEMENT OF LOANS IN LEASING BUSINESSWithin the speculative areas designated by the government, the Rent to Interest (RTI) ratio for individual home leasing business operators will be raised from the current 1.25 times to 1.5 times.IV. PREVENT OPPORTUNISTIC INVESTMENT BEHAVIOR USING JEONSE The government aims to prevent opportunistic investment behavior using jeonse by requiring multiple home owners or those who purchase homes valued over KRW900 million to pay off loans borrowed for jeonse.The Seoul Guarantee In
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Dec 16, 2019

FSC Approves Internet-only Bank License for Toss Bank

The FSC decided to grant ‘Toss Bank’ a preliminary license to operate internet-only bank on December 16. After receiving three applications on October 15, the Financial Supervisory Service formed an evaluation committee to review their applications, which took place on December 12-14.For ‘Toss Bank,’ the evaluation committee concluded that its business plan showed a sufficient level of innovativeness, inclusiveness and stability. Meanwhile, the committee decided that the application by ‘Soso Smart Bank’ did not show a sufficient level of preparation in terms of its financing and business plans. One of the applicants, ‘Familia Smart Bank,’ submitted a notice for withdrawal on December 11 prior to the review by the evaluation committee.‘Toss Bank’ may begin its operation within 6 months of getting a final approval from the FSC.* Please refer to the attached PDF for details.
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Dec 16, 2019

FSC Unveils Revised Guidelines for Financial Consumer Protection

The FSC unveiled a revision to the Guidelines on Financial Consumer Protection on December 16 in order to continue to encourage financial institutions to take more responsibility in consumer protection prior to the enactment of the Financial Consumer Protection Act by the National Assembly. The revised guidelines, which will go into effect on January 1, 2020, contain measures to enhance consumer protection function of financial institutions.KEY MEASURESI. ENCOURAGE CHIEF EXECUTIVES TO LEAD CONSUMER PROTECTION EFFORTS► Within financial companies, the position of chairperson of financial consumer protection council will be assumed by company’s chief executive officer (CEO) in order to boost the status of financial consumer protection council. The government will recognize an exemption to this rule and allow chief consumer officer (CCO) to assume the role of chairperson provided that the company has received an above ‘satisfactory’ rating on its consumer protection record.► In order to promote a comprehensive consumer issue management system in financial companies, the role and authority of financial consumer protection council will be boosted. When launching new products, the council has the authority to conduct impact analysis on consumers, review results of advertisement compliance assessment by relevant authorities and examine new or revised product information.► Financial institutions will be encouraged to hire a sufficient level of consumer protection specialists while coordinating with relevant departments, such as customer relations, product development and sales.II. GRANT MORE INDEPENDENCE AND AUTHORITY FOR CHIEF CONSUMER OFFICERS► Financial companies managing large amounts of assets and have a high frequency of consumer complaints reported within a particular region should appoint an independent chief consumer officer (CCO) among its board members.► CCOs should be given sufficient authority to oversee issues concerning consumer protection. By
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Dec 12, 2019

FSC Finalizes Measures to Strengthen Investor Protection with High-risk Investment Products

FSC FINALIZES MEASURES TO STRENGTHEN INVESTOR PROTECTION WITH HIGH-RISK INVESTMENT PRODUCTSThe FSC announced a finalized plan to strengthen investor protection with high-risk investment products on December 12. Taking into account opinions from the financial industry, the finalized plan includes detailed measures and amendments to the original plan announced on November 14. SUPPLEMENTARY AMENDED MEASURESI. STANDARDS FOR ‘HIGHLY COMPLEX’ INVESTMENT PRODUCTS‘Highly complex’ investment products will be determined by the following criteria: (i) the complexity of structure in investment products, (ii) the amount of possible loss and (iii) whether investment products are listed or not. In the case that financial companies are unable to determine whether an investment product qualifies as ‘highly complex,’ they may request a decision by the Korea Financial Investment Association and the FSC.II. VALIDITY FOR CLASSIFICATION OF INVESTORS BY RISK APPETITEThe classification of investors by their risk appetite will be valid for 1-2 years, shorter than the previously announced 1-3 years, to ensure a more up-to-date classification.III. SCOPE OF UNFAIR SALES PRACTICEUnderestimating the riskiness of ‘highly complex’ investment products and selling them as mid-risk products will be classified as ‘unfair sales practice,’ which will face strict punishment.IV. CLARIFICATION OF BUSINESS SCOPE BETWEEN FUND MANAGERS AND SELLERS The scope of business between fund managers and sellers will be specified to determine whether a fund belongs to an OEM fund or not. A fund does not belong to an OEM fund if:(i) fund managers and sellers discuss investor demand and market trend without specifying investment targets or management methods;(ii) they exchange general information irrelevant to the establishment and management of funds; and(iii) they keep records of their discussion with relevant internal control V. LIMITED PERMISSION FOR BANKS TO SELL ‘HIGHLY COMPLEX’ INVESTMENT P
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Dec 10, 2019

Vice Chairman Speaks on Embracing Digital Transformation in Financial Industry

Vice Chairman Sohn Byungdoo attended the 6th International Financial Cooperation Forum hosted by the Financial Services Commission and the Council on International Financial Cooperation on December 10. This year’s forum was held on the theme of ‘Embracing Digital Transformation: The Future of the Financial Industry.’Vice Chairman Sohn delivered welcoming remarks at the forum, underscoring the three characteristics brought by digital transformation, such as hyperconnectivity, platform economy and the big blur. The Vice Chairman stated that the government has recently unveiled measures to support fintech start-ups to scale up, through easing entry restrictions to the financial industry, establishing a fintech-friendly IPO environment, expanding financial infrastructures for digital transformation and supporting fintech firms with overseas business opportunities.Vice Chairman Sohn also added that maintaining close communication with other countries is essential for information sharing and policy cooperation.* Please refer to the attached PDF for details.
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Dec 05, 2019

Measures to Improve Management of Risk Exposure in Project Finance

The government introduced its plans to improve the management ofrisk exposure in real estate project finance on December 5.BackgroundProject financing in real estate is a financing mechanism based onthe business value of the project and the expected cash flows of the project inthe future. Due to the recent financial deepening and continuing low yields,project financing has increased significantly. Project financing provides an efficientway to finance real estate or infrastructure development projects.However, due to heavy reliance on the expected value of theproject, risk exposure is highly dependent on market conditions. Without propermanagement of risks, or in the case of a distortion of profits or risks, it maypose a threat to financial stability.Risk exposure in project financing has continued to increase especiallyin non-bank sectors since 2013. The prevalence of high-risk project financingloans, such as bridge loans, has dropped whereas the level of exposure bysecurities companies and specialized credit finance companies increased. Debtguarantees in project financing also increased as the burden of credit exposureshifted from construction companies to financial institutions.Recent TrendsAt the end of June 2019, the total amount of debt guarantees inproject financing stood at KRW28.1 trillion, out of which KRW26.2 trillion issuedby securities companies. The outstanding loan balance in project financing stoodat KRW71.8 trillion, rising on average 11.6 percent a year from KRW39.3trillion at the end of 2013. By the end of June 2019, both the default rate andthe sub-standard asset ratio continued to decline since 2013 from 13.0 percentto 1.9 percent and 16.9 percent to 3.0 percent, respectively, due to anincreased volume in project financing loans.Key MeasuresI. Improvingthe Soundness of Debt Guarantees in Project Financing► Establishing anupper ceiling on debt guaranteesUnder the current system,securities companies face no upper limits on issuing debt guarantees
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Dec 04, 2019

Measures to Promote Fintech Scale-ups

The FSC announced measures to promote fintech scale-ups on December 4, which includes 24 key tasks in 8 different policy areas.BACKGROUNDThe government has been promoting the fintech industry as part of its innovation-led growth strategy amid digital transformation and the 4th industrial revolution. To this end, the government has introduced a financial regulatory sandbox, open banking, regulatory reforms and budget earmarks for fintech. In order to further develop Korea’s fintech industry and its ecosystem, the government plans to implement the following fintech scale-up strategies, which builds upon the progress made so far.KEY MEASURESI. IMPROVING THE CURRENT REGULATORY SANDBOX SYSTEM► Designate more than 100 ‘innovative financial services’ by the end of March 2020, which marks the one-year anniversary of launching the regulatory sandbox► Improve rules and practices in operating the regulatory sandbox: (i) protect innovative ideas and technologies through patents and intellectual property rights (e.g. providing legal counsel or expediting patent dispute resolution); (ii) impose a minimum level of additional requirements on ‘innovative financial services;’ and (iii) grant continuation of designation status through MA► Provide continuous support (e.g. costs on testing, security inspection, office space, etc.) for the entire cycle from designation of ‘innovative financial services’ to commercialization of innovative financial solutions.► Set up a supervisory framework tailored to the promotion of fintech firms – e.g. conducting supervision and inspection aimed at providing counseling or establishing regulatory grounds to grant fintech firms immunity in case of minor violations.II. PERFORMING REGULATORY REFORMS TO FACILITATE FINTECH DEVELOPMENT► Promote a flexible and dynamic regulatory environment where testing of ‘innovative financial services’ can lead to commercialization and ultimately to an improvement in regulatory reforms.► Con
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Nov 29, 2019

Vice Chairman Attends 9th Korea-China-Japan High-level Finance Authorities Meeting

Vice Chairman Sohn Byungdoo attended the 9th Korea-China-Japan High-level Finance Authorities Meeting held in Tokyo, Japan on November 29, and discussed ways to enhance trilateral cooperation.During the meeting, the three countries shared information and exchanged views on the latest issues facing each country.Vice Chairman Sohn spoke about the Korean government’s innovation-led growth strategy and fintech policy through which it aims to develop new industries and create new markets. He introduced the government’s efforts to bring about digital transformation in the financial sector through policies, such as regulatory sandbox and internet-only banks.Vice Chairman Sohn also talked about recent trends and risk factors in the global financial markets, such as prolonged low interest rates, while emphasizing the importance of cooperation among financial authorities to improve the level of stability in the financial system.The three countries agreed to hold the meeting regularly and continue to maintain cooperation.* Please refer to the attached PDF for details.
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