Press Releases - Financial Services Commission

Press Releases

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Nov 28, 2019

FSC Signs MOU to Boost IP Financing for Regional SMEs and Startups

FSC Chairman Eun Sung-soo attended the 2nd Intellectual Property Finance Forum held on November 28, and signed a Memorandum of Understanding with the Korean Intellectual Property Office, regional banks and guarantee institutions to promote intellectual property (IP) financing for regional SMEs and start-ups.IP financing is an important source of raising capital for SMEs and start-ups that have outstanding technologies and yet lack collateral or credit records.The government unveiled the comprehensive measures to promote IP financing last year, and five private sector banks are currently offering IP-backed loans as well as the policy banks. The amount of newly issued IP-backed loans increased rapidly from KRW86.6 billion in 2017 and KRW88.4 billion in 2018 to KRW236 billion in October 2019.And yet, IP financing has been concentrated in the Seoul metropolitan area with a 68 percent of the total IP financing occurring in Seoul and Gyeonggi Province in the past five years.The government expects that this MoU will provide regional SMEs and startups an easier access to raising capital as it helps spread IP financing throughout different regions.Chairman Eun stated that IP financing will serve as an impetus for developing and spreading intellectual properties, and that the government will continue innovation in financial services by introducing a lump-sum collateral system and integrating the technology and the credit evaluation systems.* Please refer to the attached PDF for details.
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Nov 28, 2019

Revision Bill on Credit Information Act Moves Ahead at National Assembly

The National Policy Committee of the National Assembly approved a revision bill on the Credit Information Use and Protection Act on November 28. Along with the Personal Information Protection Act and the Act on Promotion of Information and Communications Network Utilization and Information Protection, this revision bill on the Credit Information Act is considered as a key legislation to promote data economy.KEY FEATURES► ESTABLISHING NEW LEGAL BASIS FOR USING AND ANALYZING BIG DATA- Pseudonymised information may be used without consent from the owner of the information for statistical, industry research and public documentation purposes.- Converging data is permitted only by the institutions designated by the government.- Safety measures are established for the use and convergence of pseudonymised data, including a prohibition on re-identification of pseudonymised data and a requirement for separate management of additional information. ► STRENGTHENING THE ROLE OF PERSONAL INFORMATION PROTECTION COMMISSION- The revision bill on the Personal Information Protection Act upgrades the status of the Personal Information Protection Commission (PIPC) from an administrative commission to that of a central administrative agency with authority to conduct investigations, regulate commercial enterprises and implement relevant laws.► IMPROVING REGULATORY FRAMEWORK ON CREDIT BUREAU INDUSTRY- The credit bureau industry will be categorized into a) personal CB, b) individual business CB and c) corporate CB, while the entry barrier for credit bureau businesses will be lowered. - The current regulation which restricts credit bureau businesses from performing for-profit operations will be lifted, and credit bureau businesses will be allowed to conduct data analysis and processing as well as consulting.- Conduct regulations will be established to improve the soundness of the credit bureau industry. Largest shareholders of personal CB and individual business CB businesses will be su
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Nov 27, 2019

Revision Bill to Introduce AML Requirements on Crypto Assets Moves Ahead at National Assembly

The National Policy Committee of the National Assembly approved a revision bill on Reporting and Using Specified Financial Transaction Information on Crypto Assets on November 25. The revised bill imposes anti-money laundering (AML) requirements on crypto-asset business operators and stipulates requirements with which financial institutions must comply in transaction with crypto-asset business operators.The revision bill will be reviewed by the Legislation Judiciary Committee before it is presented at a plenary session for the final passage. If passed at the National Assembly, the bill will take effect one year after promulgation.KEY FEATURES ► REQUIREMENTS FOR CRYPTO-ASSET BUSINESS OPERATORS Crypto-asset business operators are required to report their transactions to the Korea Financial Intelligence Unit (KoFIU) under the FSC; subject to basic AML requirements (e.g. customer due diligence, suspicious transaction reporting, etc.); and bound to follow additional obligations such as keeping separate transaction details for users. If crypto-asset business operators fail to report to KoFIU, they may face criminal penalties of maximum five years of imprisonment or fine of up to KRW50 million.► REQUIREMENTS FOR FINANCIAL INSTITUTIONS Financial institutions are required to conduct customer due diligence on crypto-asset business operators and check whether they report their crypto-asset business to KoFIU and maintain customer deposits in a separate account. If crypto-asset business operators fail to report their business to the KoFIU or are deemed as high-risk for money laundering, financial institutions are obliged to refuse (or terminate) such transactions.► EFFECTIVE DATE The bill will take effect one year after its promulgation to give crypto-asset business operators and financial institutions time to adapt and prepare for the new regulatory regime. It will also give existing crypto-asset business operators a six-month transition period to report to KoFIU after th
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Nov 27, 2019

New Bill on Financial Consumer Protection Moves Ahead at National Assembly

The National Policy Committee of the National Assembly approved a Financial Consumer Protection Bill on November 25. As a key policy agenda of the Moon Jae-in administration, this legislation will help enhance the rights of financial consumers and improve the overall public trust in the financial industry. KEY FEATURES I. SIX SALES REGULATIONS TO BE APPLIED TO ALL FINANCIAL PRODUCTS The six major sales regulations currently applied to selected financial products by separate laws, such as the Financial Investment Services and Capital Markets Act, will be applied to all financial products. II. STRICT PUNISHMENT FOR VIOLATIONS OF SIX SALES REGULATIONS The new legislation established a legal basis to impose punitive fines for violating the major sales regulations (except the principle of suitability and the principle of adequacy regulations); integrated divergent penalty criteria currently under different laws into a unitary penalty system; and established a legal basis to impose a penalty of up to KRW30 million for violating the principle of suitability and the principle of adequacy regulations. III. PREVENTION OF CONSUMER DAMAGES FROM MISSELLING EFFECTIVE REMEDIES A new set of consumer rights and arrangements will be introduced to prevent consumers from falling prey to misselling and other unfair sales practices and provide more effective remedies in the afterwards. - Consumers will be entitled to the right to withdraw subscription, to terminate contract if it is deemed to be in violation of laws, and to request information for the purpose of dispute resolution or litigation. - FSC may order a cessation of sales of the relevant products when significant losses are expected to consumers. - The burden of proof in liability for damage cases remains with the seller. - Courts may decide to terminate lawsuits arising from unresolved conflict resolution cases. - Filing a lawsuit against an individual is prohibited until the conflict resolution case is finalized. IV. ENHANCED
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Nov 26, 2019

FSC Chairman Speaks on Importance of Innovation in Movable Asset-based Financing

FSC Chairman Eun Sung-soo visited a peer-to-peer lending firm Popfunding on November 26, and held talks on promoting innovative financial solutions through movable asset-based financing.During the talks, Chairman Eun stated that the traditional lending practice centered on real estate has begun to change due to government efforts to facilitate the development of financial products which recognize movables as collateral. Merely two years ago, movable asset-based financing remained unfamiliar. However, banks have set up a movable collateral management system using Internet-of-Things (IoT) as they led innovative initiatives in this field.As a result, the amount of movable asset-based loans rapidly increased from KRW735.5 billion at the end of last year to more than KRW1.2 trillion at the end of September 2019.Moreover, Chairman Eun emphasized that due to innovative ideas in movable asset-based financing, new solutions have emerged which would have been unlikely in the past. For instance, inventory as collateral has received relatively low attention compared to machinery or intellectual property due to difficulties in assessment and management. However, with movable asset-based financing, Popfunding began to offer e-commerce firms not only business loans at low to medium interest rates but also systematic inventory management and warehouse services.Chairman Eun said that more innovative solutions should be introduced in the field of movable asset-based financing in order to facilitate start-ups and SMEs.The government has announced a revision to the Act on Security over Movable Assets and Receivables on November 5, and plans to set up an organization that supports redemption of movable collateral in the first half of 2020.* Please refer to the attached PDF for details.
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Nov 21, 2019

FSC Designates 8 More Financial Solutions as 'Innovative Financial Services'

The FSC designated eight additional financial solutions as ‘innovative financial services’ to be accepted into financial regulatory sandbox on November 20. The FSC has thus far designated a total of 68 such innovative services since launching the financial regulatory sandbox in April this year.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SOLUTIONS’1. A personalized asset management and financial advisory service based on big data analytics (Rainist), a monthly rent payment service with credit card (Shinhan Card), and a travel insurance service offering simpler application procedures (Bomapp Partner, Rainist and Plan Asset)2. A credit card reward points service which helps small merchants save on credit card transaction fees and offers them reward points on credit card sales amount on the next business day following credit card transaction (KB Kookmin Card) and a cloud based Value Added Network (VAN) service which aims to increase efficiency (Finevo)3. A financial fraud prevention service which monitors suspicious accounts and shares information on fraudulent activities with financial institutions (Korea Financial Telecommunications Clearings Institute)
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Nov 20, 2019

FSC Approves Shareholder Qualifications of KIH and KIVAM in Kakao Bank

The Financial Services Commission approved Korea Investment Holdings Co., Ltd.(KIH) and Korea Investment Value Asset Management (KIVAM)’s holdings of a 4.99 percent and 29 percent stake each in Kakao Bank on November 20. With the FSC’s approval, KIH is allowed to sell its 16 percent stake in Kakao Bank to Kakao and 29 percent stake to its subsidiary, KIVAM. That will make Kakao the largest shareholder with a 34 percent stake in Kakao Bank.* Please refer to the attached PDF for details.
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Nov 19, 2019

Financial Cooperation in ASEAN Region

BACKGROUNDASEAN is a large market which has achieved remarkable economic growth with its growing population. The population of the region is expected to rise to around 688 million by 2024. In the financial sector, Korea and ASEAN countries have made an effort to establish strategic partnership to promote economic and financial growth in ASEAN region.Korea has focused on enhancing financial cooperation with ASEAN by supporting Korean companies’ business operation in the region and promoting partnership in developing financial infrastructure.FEATURES OF FINANCIAL COOPERATION IN ASEAN REGION I. EXPECTATIONS OF HIGH PROFITSAs ASEAN has high growth potential, many companies and institutions in the financial sector are willing to expand their business in the region. In fact, as of June, 2019, the number of subsidiaries and branches opened by Korean financial firms reached 150 in ASEAN region, including Indonesia and Vietnam, rose 92% compared to the end of 2011. The asset of overseas subsidiaries and branches in ASEAN region accounts for 14% of the total asset; however, the profits account for 30% of the total profits.Subsidiaries and branches of Korean banks in ASEAN region have higher Return on Asset (ROA) compared to the banks in domestic market.II. DIVERSIFICATION OF OVERSEAS BUSINESS Korean financial firms diversify their overseas business by establishing non-bank financial institutions and investing in shares of non-banking financial firms in the region.For example, Shinhan bank started banking business in ASEAN region, and then it expanded their business into other financial services, including credit card, financial investment and consumer finance. This strategy helped the financial firm to advance into new markets by creating synergy effects among affiliates. III. LOCALIZATION Korean financial firms accelerate their expansion by establishing more subsidiaries than offices or branches. In the process of localization, Korean financial firms tend to consider the e
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Nov 18, 2019

Government Promotes Market-based Approach to Corporate Restructuring

FSC Chairman Eun Sung-soo participated in an MOU signing and launching event of a DIP financing company on November 18, and held talks with entrepreneurs and investors on market-based approaches to corporate restructuring.The following is a summary of Chairman Eun’s remarks:IMPORTANCE OF DIP FINANCINGFor businesses, it is very difficult to raise capital once they are labeled as ‘insolvent’ and have to go through a corporate rehabilitation process following a temporary crisis or setback due to changes in external environments.In this regard, for so many institutions to come together in support of providing new capital to help rehabilitate companies in financial distress through DIP financing is very meaningful. This will provide a new guideline in the process of debt settlement and business normalization.ESTABLISHING DIP FINANCING SUPPORT SYSTEMThere exist continuing anxieties about a slowing recovery of our economy. The hardship experienced by our industries and companies may be prolonged.As such, it is crucial to be well prepared in a preemptive and systematic way for a heightened demand for market-based corporate restructuring.The DIP financing company launched today will provide capital to SMEs that have difficulties raising funds in the market. For larger companies, the government will help establish a ‘DIP financing fund’ in the amount of KRW200 billion and provide support to competitive businesses at appropriate times.EXPANDING ‘CORPORATE RESTRUCTURING INNOVATION FUND’The government will increase the level of funds available for the ‘corporate restructuring innovation fund’ next year from the current level of KRW1 trillion to KRW2 trillion.It is crucial to establish sufficient capacity to provide support considering the fact that searching for appropriate investment targets takes a long time, often between 4 and 5 years.The ‘corporate restructuring innovation fund’ will have to play a supporting role as the market screens for competitive
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Nov 14, 2019

Government to Increase International Cooperation on Insurance Supervision

The Financial Services Commission and the Financial Supervisory Service became signatories to the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU) on November 14.The IAIS MMoU was established in 2007 as a nonbinding agreement with the aim of ensuring stability in the insurance industry and protecting consumers through mutual cooperation on information sharing. As of November 2019, 71 regulatory agencies from 49 countries have become members.The FSC and the FSS submitted membership applications to the IAIS MMoU in November 2018, and the applications have been approved in July this year.The government expects that the membership status will enhance international cooperation of information sharing on insurance market activities and boost global awareness of Korea’s insurance industry.* Please refer to the attached PDF for details.
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Nov 14, 2019

Measures to Strengthen Investor Protection with High-risk Investment Products

The Financial Services Commission and the Financial Supervisory Service unveiled measures to strengthen investor protection with high-risk financial investment products in light of the recent derivatives-linked funds (DLFs) mis-selling cases. The reform measures are aimed at enhancing consumer protection and maintaining stability in the financial system, without jeopardizing private equity funds’ critical function of supplying venture capital.BACKGROUNDThe recent DLFs mis-selling controversy was caused by financial institutions’ attempt to sell high-risk funds to retail investors in private offering to avoid stringent regulation on public offering; loopholes in investor protection measures; and insufficient internal controls by financial institutions.The DLFs structured to track the yield of Germany’s 10-year government bonds or the performance of constant maturity swap (CMS) rates of the U.S. or the U.K. were sold to retail investors by two local commercial banks with sales balance of KRW795 billion as of August 7 this year.The losses were mostly accrued in September and October with an average loss of 52.7 percent with KRW99.1 billion reaching maturity and KRW97.8 billion redeemed. By November 8, the sales balance of the derivatives remained at KRW587 billion.Due to a rise in the value of underlying assets, such as the German 10-year government bonds, the expected loss of the derivatives with future maturity dates will be lower.REFORM MEASURESI. STRENGTHEN CONSUMER PROTECTION► Tightening standards for deciding a public offering fundThe standards for determining features of a public offering fund will be tightened to prevent funds that should have been a public offering fund from being sold in the form of a private fund to avoid stricter regulations, which apply to public offering funds. If a fund’s profit and loss structure is equivalent to that of its underlying asset, the fund shall be sold as a public offering fund.► Strengthening regulatory regime
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Nov 11, 2019

Achievements at a Glance with Statistics

The FSC announced the financial policy achievements during the first half of the Moon Jae-in administration. * Please refer to the attached PDF for details.
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Nov 08, 2019

FSC Standing Commissioner Attends FSB Plenary Meeting

FSC Standing Commissioner and Deputy Chairman for InternationalCooperation Choi Hoon attended the Financial Stability Board (FSB) plenarymeeting held in Paris, France on November 7. At the meeting, financialregulators from 25 FSB member countries and international organizations discussedthe current vulnerabilities in the global financial system, recent developmentswith stablecoins, and ways to enhance the effectiveness of the RegionalConsultative Groups (RCGs).Mr. Choi spoke about the need to strengthen internationalcooperation to effectively monitor and respond to developments in stablecoins, whileemphasizing that a global risk monitoring system should be based on flexibilityand adaptability to analyze their effects on the stability of financialmarkets.Speaking on the increasing connectivity in the global financialsystem, Mr. Choi said that establishing a comprehensive and effective globalfinancial regulatory network should take into account regional discrepancies inorder to prevent regulatory arbitrage.Mr. Choi added that as the host country of the RCG for Asia in2020, Korea will hold workshops on topics relevant to the needs of the regionalregulators, such as fintech development and its supervision.
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Nov 07, 2019

Vice Chairman Speaks on Importance of Financial Information Security

Vice Chairman Sohn Byungdoo attended the Financial InformationSecurity Conference 2019 hosted by the Financial Security Institute on November7, and delivered congratulatory remarks on the theme of financial information securityand maintaining innovation in the financial sector.The following is a summary of Vice Chairman Sohn’s remarks:The advancement of digital technologies has made hyperconnectivitypossible where individuals are able to get connected with devices in multipleways. In personal finance, too, opening a bank account to wire transferring moneyand managing assets can all be done in the palm of your hands using a mobiledevice. The blurring of boundaries between different industries has broughtsignificant changes.Amid these changes, the government has been promoting digital innovationin the financial services industry. First, the implementation of financial regulatorysandbox has encouraged fintech firms and financial institutions to testinnovative ideas. Second, the government introduced open banking system, andhas been working on revising the relevant laws, such as the Credit InformationAct, to provide greater access to financial services.The accelerating convergence between financial services andinformation technologies has expanded the type and scope of potential cyberthreats. Due to an increased dependence on non-financial sectors, such as ICT,the financial services sectors are exposed to greater risks from non-financialsectors. Digital transformation has led to increased interconnectedness betweenfinance and telecommunications, which makes financial information security a highpriority.In order to continue digital innovation in the financial sectors,a proper mix of stability, harmony and innovation is required. Financialinformation security should be considered as investment toward innovation, insteadof cost and regulation. Financial institutions and fintech firms should be ableto take primary responsibility in protecting information and guaranteeings
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Nov 06, 2019

FSC Designates Additional Financial Solutions as 'Innovative Financial Services'

The FSC designated seven additional financial solutions as ‘innovativefinancial services’ to be accepted into financial regulatory sandbox. As of November6, the FSC has designated a total of 60 such services.Overview of Newly Added ‘InnovativeFinancial Solutions’1. An online-based paperless application solution for business-relatedinsurance products, such as fire or disaster liability insurance (Samsung Fire MarineInsurance)2. An online payment service which allows buyers of used goods topre-charge e-points with their credit cards and transfer e-points to sellers asa means of payment when purchasing used goods directly from the seller in onlinee-commerce platform (KBKookmin Card)3. A monthly wage payment solution which uses mobile location datato log individuals’ work hours and allows workers to receive wages prior to themonthly payday through an escrow account (Emmaus)4. An automated intellectual property report solution which analyzesthe economic value of intellectual properties using big data and artificialintelligence, and forward the information to financial institutions (Wisdomain)56. An alternative credit evaluation service for individuals,business owners and SMEs, which utilizes non-financial information, such as profitrecords, types of business, number of days in operation and so on, to analyzeand provide alternative credit rating system for small businesses (BC Card, KB Kookmin Card)7. A small sum investment platform which allows individualinvestors to trade small amounts in foreign stocks and diversify portfolios (Korea Investment Securities)
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Nov 05, 2019

Recent Progress on FSC's Regulatory Sandbox

The FSC has designated a total of 53 financial services as ‘innovative financial services’ since adopting the financial regulatory sandbox on April 1 this year.Among them, 15 innovative financial services are currently operational. Including those 15 services, a total of 36 new ‘innovative financial services’ will become operational within this year.The government has been closely working with fintech sectors and providing tailored support to facilitate their development.EFFECTS OF DESIGNATING ‘INNOVATIVE FINANCIAL SERVICES’Fintech firms have been able to test innovative ideas in the market. At the same time, the launching of the financial regulatory sandbox has had positive spillover effects.► Fintech job growth: 23 fintech firms have added 225 more jobs► Increased investment: 11 fintech firms have been able to attract about 120 billion won so far and 10 billion won worth of more investment is expected within this year► Global expansion: 7 fintech firms have either expanded their business to overseas markets or are in discussion to do so
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Oct 31, 2019

Government Establishes Legal Basis to Promote Peer-to-Peer Lending

The National Assembly passed an act on online investment-linked financing on October 31. The new legislation is expected to remove the legal uncertainties on P2P lending, promote stable development of the P2P lending industry and provide more protection for both lenders and borrowers.BACKGROUNDSince February 27, 2017, the government has been regulating the P2P lending industry with a flexible ‘guideline’ system to protect investors and foster development of the fintech sectors. The government has since made revisions to the ‘guideline’ on February 27, 2018 and January 1, 2019 to strengthen measures to protect investors from unfair and risky practices. KEY FEATURESThe new legislation established a legal basis for the operation of P2P lending businesses and the regulatory oversight role of the FSC. The legislation stipulates that:► P2P lending firms must be registered with the FSC and have at least 500 million won in capital.► P2P lending firms must publicly disclose information related to transaction structure, financial management status, loan size, delinquency rate, etc.► Interest on P2P loans shall not exceed 24 percent under the Credit Business Act.► High-risk practices, such as lending to P2P businesses and largest shareholders, lending loans prior to raising funds from investors, and maturity mismatch between investment and loan, will be prohibited.► A P2P lending ceiling will be established for both borrowers and lenders.► P2P lending firms will abide by a set of guidelines to provide investors with information to help make investment decision and protect investors in the event of bankruptcy or embezzlement.► The FSC and FSS will assume the regulatory oversight role over the P2P lending industry.SCHEDULEThe specifics of the new legislation will be publicly announced within this year in order to speed up the registration and application process for the P2P lending firms during the second half of 2020.In the meantime, the government will cl
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Oct 31, 2019

New Legislation on Financial Benchmarks

A new bill to regulate financial benchmarks was passed at the National Assembly on October 31, 2019. The new legislation is intended to ensure the validity and credibility of financial benchmarks in response to global regulatory moves in which major countries including EU are introducing regulations on financial benchmarks. The FSC expects that the Financial Benchmark Act will strengthen the management and supervision on financial benchmarks, which will help secure financial stability. KEY FEATURES► Designation of “critical benchmarks” The FSC may designate benchmarks that would have a significant impact on financial market stability, consumer protection and the real economy as “critical” benchmarks. ► Administrator of critical benchmarks The FSC may designate entities which determine, publish and provide critical benchmark as “administrators.” ► Designation of “critical benchmarks” The FSC may designate benchmarks that would have a significant impact on financial market stability, consumer protection and the real economy as “critical” benchmarks. ► Obligations of administrator - (ESTABLISHMENT OF COMMITTEE) Administrators are required to establish a committee to deliberate on important matters in regard with establishing and revising operational rules, collecting input data, calculating and determining critical benchmarks. - (DISCLOSURE) Administrators are required to disclose details about operational rules and management of conflict of interest on their websites. - (REVIEW) Administrators should review the validity of their operational rules at least every two years and disclose the results. ► Cessation of provision of critical benchmarks Any administrator who intends to cease the provision of critical benchmarks for unexpected reasons shall post a public announcement on the reasons and the date of cessation for more than 20 days and report to the FSC six months before the date of cessation. The FSC may order the transfer of such ope
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Oct 31, 2019

Government Prepares to Launch Asia Region Funds Passport

The FSC’s proposal to revise the Financial Investment Services and Capital Markets Act for the implementation of the Asia Region Funds Passport was passed at the National Assembly on October 31.The ARFP is a multilateral framework to support the development of an Asian region funds management industry by introducing streamlined processes for registering passport funds in each others’ economies.In September 2010, Australia first suggested the idea of the ARFP, and the five economies signed a memorandum of cooperation in April 2016. Australia, Thailand and Japan launched the passport in February and New Zealand in July this year.Publicly offered local funds can apply to be registered as a passport fund in Korea, and they will be eligible to offer them in other member economies.Foreign passport funds, which will be subject to local laws and regulations, can apply to offer their funds in Korea after a simplified registration process.The revised law will improve market access for both domestic fund managers looking to offer passport funds offshore and foreign fund managers wanting to offer passport funds in Korea. The government expects that the ARFP will help diversify portfolios for investors and increase competitiveness for fund managers.The revision to implement the ARFP will take effect six months after public announcement.
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Oct 30, 2019

Open Banking Launched in Banking Sector

The open banking system will be pilot-launched in the banking sector on October 30. During the pilot-run period, the government will conduct a comprehensive assessment of the system and make adjustments if necessary before opening the system to fintech firms on December 18.At first, open banking will be offered by 10 banks, and gradually expanded to the other 8 banks as well as fintech businesses.BACKGROUNDThe government recognized that financial payment services and data sectors have a significant potential for innovation, and announced on February 25 this year its plan to establish an open banking system, which would allow fintech firms’ access to banks’ payment network through open API initiatives.KEY FEATURESLower transaction fees and enhanced user convenience► The current fee of KRW400 to 500 per transaction will be lowered to about KRW40 to 50 for large service providers, and KRW20 to 30 for small- and medium-sized firms. ► Bank customers can choose any mobile banking application to manage all their accounts in a single application without having to use separate applications for different banks.Ensuring security and protection for consumers► Fintech firms attempting to participate in the open banking system are subject to a security check by the Financial Security Institute.► The storage capacity of the current operating system will be upgraded from 4TB to 60TB before the system becomes open to fintech firms, and a 24-hour Fraud Detective System will closely monitor fraudulent activities and automatically shut down suspicious transactions.EXPECTATIONThe government expects that open banking will boost innovation and competitiveness in the financial sectors by introducing a comprehensive financial service platform, allowing fintech businesses to adopt open banking, and improving user experience for consumers.The lowered entry barrier for fintech firms will lead to the provision and development of better services tailored to the needs of consumers at
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