FSC promotes fintech and innovation in financial services. In order to encourage convergence and collaboration between finance and information technology, FSC launched the financial regulatory sandbox scheme in April 2019, through which more than one hundred ‘innovative financial services’ have been designated. The regulatory sandbox program allows fintechs and start-ups to test out their ideas without worrying about the regulatory impediments. In addition, Korea’s open banking system was fully launched in December 2019, opening up payment networks to both banks and fintechs through a joint network. By creating a financial data exchange platform, fostering MyData industry and opening up extensive sets of public financial data stored at major public institutions, FSC is also working to create an environment where big data and AI can play a larger role in finance. Policies intended to promote innovation also include providing tailored support to the Korean fintech firms to help them grow and scale up as global unicorns by easing regulations, expanding investment and providing assistance for overseas business expansion.
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Jul 09, 2020
- FSC Chairman Speaks about Promoting Artificial Intelligence in Financial Industry
- FSC Chairman Eun Sung-soo visited the Korea Insurance Development Institute’s automobile technology research center in Icheon-si, Gyeonggi-do on July 9 to see the application of artificial intelligence in auto insurance, and held talks on the topic of the insurance industry in the 4th industrial revolution and post-pandemic era.The following is a summary of Chairman Eun’s remarks.With the 4th industrial revolution, technological innovation is rapidly taking place throughout the world. The financial industry is also experiencing changes in its structure and terrain. In a post-pandemic era, this changing trend, such as digitalization of the economy and development of untact services, is expected to accelerate even further.The insurance industry has diverse channels through which it provides services to consumers, and is closely connected to different industries, which is why it has a high potential for convergence with innovative technologies. In this regard, the AI-based auto damage appraisal service is an excellent example of technological convergence in the insurance industry.The FSC will set up a working group to draw up plans to promote AI in the financial sectors, which will focus on improving regulations, building infrastructure and ensuring consumer protection.In order to ensure a continuous growth of the insurance industry, different attempts and tryouts for innovation and adapting to changes should be highly encouraged.The FSC will strongly support the insurance industry’s efforts at innovation through its regulatory sandbox program and continuous efforts to improve regulations.* Please refer to the attached PDF for details.
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Jul 07, 2020
- FSC Chairman Underscores Balance between Financial Innovation and Data Security
- FSC Chairman Eun Sung-soo attended a seminar held by the Financial Security Institute commemorating the day of information protection on July 7 and delivered a keynote address underscoring the importance of maintaining a balance between financial innovation and data security.The following is a summary of Chairman Eun’s remarks.(DIGITAL FINANCE) The COVID-19 pandemic has accelerated the trend for contact-less financial services and digital transformation amid the 4th industrial revolution. Consumer preference for online transactions, such as mobile-based simple money transfer or payment methods, has increased as well as the frequency of telecommuting and teleconferencing by financial institutions. The government has been actively pursuing policies to promote innovation in the financial sectors. As a result, a total of 106 ‘innovative financial services’ have been designated through the regulatory sandbox program. As open banking became fully operational in December last year, more than seven of ten economically active individuals now use open banking, and the number of account views and transfers reached more than a billion. Moreover, the revisions to the three major data-related laws including the Credit Information Act will go into effect on August 5.(NEW CHALLENGES) Innovation in digital finance poses new challenges. Unlawful activities, such as identity theft or vishing, can lead to financial crimes. With a growing number of big techs and other nonfinancial institutions playing bigger roles in the provision of financial services, the third party risk originating from nonfinancial sectors has increased. The scope of cyber threats has also become wider with the application of newly available digital technologies. In this regard, without a guarantee for the safe protection of personal wealth and identity, innovation in digital finance is nothing more than a house of cards.(BALANCE BETWEEN INNOVATION SECURITY) In order to maintain an appropriate balance between
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Jul 06, 2020
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Jul 02, 2020
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Jul 01, 2020
- FSC Announces Plans to Further Promote Use of Big Data in Finance
- The FSC announced its plans to make financial big data more widely available on July 1, which include making improvements to the Korea Credit Information Services’ CreDB system and newly creating an open big data system at the Korea Financial Telecommunications Clearings Institute.BACKGROUNDData is considered as an essential commodity in digital economy, and opening up large sets of data stored at public institutions to be utilized by companies is crucial. In this regard, the FSC has been building the necessary big data infrastructure to facilitate the opening up, distribution and convergence of data through following stages.(CREDB SYSTEM) Personal and business credit information system called CreDB was established at the Korea Credit Information Services, offering financial data to financial companies, enterprises and academia beginning on June 3, 2019.(FINANCIAL DATA EXCHANGE) Financial data exchange was launched on May 11, 2020, providing a one-stop data search, transaction and distribution service.(OPENING UP PUBLIC FINANCIAL DATA) About 44.5 million pieces of public financial data stored at the FSC and nine other public financial institutions have been opened up to the private sector enterprises on June 9, 2020.(DESIGNATING DATA SPECIALIZING INSTITUTION) To ensure safety and security in the data convergence process, data specializing institutions will be designated in August 2020.IMPROVEMENTS TO CREDBDue to a rise in demand, the CreDB system needs to be improved to (a) make more types of data sets available, (b) improve server capacity to make deep learning and other types of more sophisticated data analysis possible and (c) make cross-convergence and analysis possible between the CreDB data and other types of nonfinancial data.(DATA SETS) Introduce insurance database (from July 1), user tailored database (from H2 2020) and educational database (from July 1) to be newly added to the CreDB(SERVER CAPACITY) Boost the current server capacity in H2 2020 to enable
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Jun 29, 2020
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Jun 23, 2020
- FSC Chairman Highlights Importance of Building Mutual Trust between Start-ups and Investors
- FSC Chairman Eun Sung-soo attended the global start-up conference NextRise 2020 on June 23 in Seoul, and delivered congratulatory remarks. During his speech, Chairman Eun explained the government’s policy to promote innovation in financial services while encouraging start-up entrepreneurs.The following is a summary of Chairman Eun’s remarks.(START-UP ENVIRONMENT) Despite unexpected difficulties and uncertainties caused by the COVID-19, the changing economic conditions provide challenges as well as new opportunities. We may be able to seize new opportunities if we are well prepared for the post-pandemic world and changing global economic conditions.(INNOVATION IN FINANCIAL SERVICES) The government is pursuing diverse strategies to change our economy from a ‘chaser’ to a ‘leader.’ In finance, the government will focus on promoting innovative financial services to help support companies. Working with other ministries, the FSC will select about 200 innovative firms to provide targeted financial assistance. To support innovative firms at their growth stage, the government will work to expand the scale-up fund from KRW8 trillion to KRW15 trillion by 2022. To promote crowdfunding as an important financing channel for start-ups, the government will allow start-ups as well as SMEs to issue securities to raise funds and expand the annual issuance cap from KRW1.5 billion to KRW3 billion. The government-backed start-up incubating center Mapo Front1 will become operational next month. During the second half of this year, the government will work on improving the business credit evaluation system.(BUILDING MUTUAL TRUST) Aside from government policies, building mutual trust is important between businesses and investors. Innovative ideas and technological prowess should earn trust from investors. Similarly, investors and lending institutions should build trust from the market through transparent management of capital.* Please refer to the attached PDF for details.
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Jun 16, 2020
- Plans to Promote Crowdfunding
- FSC Chairman Eun Sung-soo held a meeting with relevant officials from the public and private sectors on June 16 and unveiled the government’s plans to promote crowdfunding.CHAIRMAN’S REMARKSOver the past four years, many firms, agencies and investors have joined efforts to promote venture capital market through crowdfunding. As the term “crowdfunding” has its origins in “crowdsourcing,” it is distinct from other investment methods using the “wisdom of crowd.” As there have been many successful crowdfunding cases, the role of crowdfunding as an “untact” fundraising and investment mechanism is expected to grow in the future.In this regard, the FSC has prepared specific plans to promote crowdfunding to support the growth of innovative start-ups and SMEs through venture capitals and strengthen foundations to foster an ecosystem for innovative solutions in financial services.The changes in our work environment and lifestyles brought about by the COVID-19 pandemic, such as telecommuting and online shopping, may present opportunities for innovative firms. In order to sustain further development of crowdfunding, trust building is important. Therefore, fostering a trustworthy crowdfunding market requires a high degree of responsibility from crowdfunding intermediaries and other relevant institutions.KEY MEASURESAs the crowdfunding system is transitioning from an adoption period to a take-off stage, the government will work to (a) bolster its role of supporting innovative firms by improving the rules for businesses, investors and intermediaries and (b) create an accountable investment market through an expansion of support from policy banks and investor protection measures.I. EXPANDING THE SCOPE OF ISSUERS AND LIMIT ON CAPITAL RAISE(a) The scope of issuers will be expanded from non-listed start-ups and venture companies to non-listed small- and medium-sized enterprises.(b) The annual cap on issuing securities will be raised from KRW1.5 billion to KRW3 bill
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Jun 09, 2020
- Preliminary Application Opens for Designation of Data Specializing Institution
- The FSC announced on June 9 that the preliminary application for the designation of data specializing institution will be open from June 10 to 24.The revised Credit Information Act, which is scheduled to go into effect on August 5, incorporates the concept of anonymized and pseudonymized data and authorizes the government designated data specializing institution to perform convergence of pseudonymized data originating from different businesses. The data specializing institution will also test the appropriateness of anonymized data upon requests.REQUIREMENTSApplying entities should (a) be non-profit or public institutions, (b) have eight or more specialists in the field of data or information security as well as legal professionals, with its board members having no recent record of violating either the Personal Information Protection Act or the Credit Information Act, (c) have set up data processing, IT and information security facilities suitable for data convergence, (d) have total debt within 200 percent of net assets, and (e) have risk management and internal control mechanisms for the purpose of identity protection with its mission and business area appropriate for performing the tasks of a data specializing institution.OPERATIONAL GUIDELINESWhile maintaining the right balance between data protection and data utilization, a streamlined and secure process for data convergence will be put in place. Also, rigorous security standards will be established in order to prevent data leakage and re-identification.The appropriateness test for anonymized data will go through an objective and efficient process by a review committee of experts.SCHEDULEThe designation of data specializing institution will be announced within August after a review of preliminary applications in July and registration on August 5.* Please refer to the attached PDF for details.
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Jun 08, 2020
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Jun 08, 2020
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Jun 04, 2020
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May 28, 2020
- FSC Designates 4 More Financial Solutions as 'Innovative Financial Services'
- The FSC added four more financial solutions to the financial regulatory sandbox on May 27, bringing the total number of ‘innovative financial services’ to 106 since launching the financial regulatory sandbox program on April 1, 2019.CHAIRMAN’S REMARKSChairman Eun Sung-soo stated that the regulatory sandbox has made positive changes in the financial sectors since its inception. It has (a) brought more rapid, convenient and affordable financial services for consumers, (b) introduced new and innovative ways of raising capital for small merchants, and (c) accelerated digital transformation for the entire financial industry. In order to prepare for a post-COVID-19 era, the government is pursuing a ‘digital new deal,’ and the sandbox program is essential as it provides a testing ground for digital transformation.In order to more effectively operate the sandbox program, the FSC will (a) focus on testing new digital technologies, such as big data and AI, (b) seek changes in regulations for untact digital services as soon as their safety and security performances are verified, (c) work to extend the regulatory exemption period for fintechs and start-ups, (d) enhance the autonomy of the designated innovative financial services, and (e) provide support to fintech firms with their scale-up and overseas expansion opportunities.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SERVICES’1. An untact personal authentication service based on blockchain technologies allowing customers to issue and save their digital certificates for real-name verification purpose (SK Telecom, expected launch in June 2021)2. An untact personal authentication platform that provides customers’ real name verification information for all savings banks using a joint savings bank mobile app (Korea Federation of Savings Banks, expected launch in December 2020)3. An untact personal authentication service using facial recognition technologies (DGB Daegu Bank, expected launch in May 2021)4. A mobile
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May 28, 2020
- FSC Chairman Speaks on Fintech Innovation as Part of Post-COVID-19 Strategy
- FSC Chairman Eun Sung-soo delivered welcoming remarks during the opening session of the 2020 Korea Fintech Week held virtually from May 28.SUMMARY OF CHAIRMAN’S SPEECHThe 2020 Korea Fintech Week will provide opportunities for experiencing connectivity, convergence, openness and innovation in the financial sector based on digital finance and big data. In order to prepare for a post-COVID-19 era, it is important to continue to promote innovation in fintech and digital finance. As part of the government’s strategies to pursue innovation, the FSC will continue to promote digital, big data and untact services in the financial industry.I. INCREASE FUNDING TO PROMOTE DIGITAL ECONOMYThe government is pursuing a ‘digital new deal’ through which establishing more digital infrastructures will help create new jobs. To this end, the government will increase investment in key technologies, such as 5G, AI and big data, and provide support for new growth engines, such as system chips, biohealth and future cars.II. IMPROVE REGULATIONS TO PROMOTE INNOVATIONThe revisions to the data related laws will help facilitate the utilization, convergence and distribution of personal financial data, which will also pave the way for MyData businesses. The abundant availability of public data to businesses will also help create more businesses and jobs. The FSC will seek to revamp the digital payment system through the introduction of MyPayment, while improving the applicability and security of open banking services. The FSC will also continue to work on improving financial regulations through its regulatory sandbox program.III. ENSURE SECURITY SAFETY OF DIGITAL DATAThe FSC will work to maintain a reliable cybersecurity system to facilitate digital innovation by seeking a right balance between data usage and protection, closing the gap on digital divide and preventing cyber voice phishing and other fraudulent activities.* Please refer to the attached PDF for details.
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May 27, 2020
- 2020 Online Korea Fintech Week
- The 2nd Korea Fintech Week will be held virtually starting at 10 am on May 28. It is organized into five sessions, and the virtual exhibitions are open to everyone for viewing at free of charge via www.fintechweek.or.kr/2020. SCHEDULE(OPENING SESSION) Welcoming remarks by FSC Chairman Eun Sung-soo and congratulatory remarks by key dignitaries including Lord Mayor of the City of London William Russell and Standard Chartered CEO Bill Winters(SPECIAL SESSIONS) Presentations and seminars on ‘open innovation,’ showcasing major policy and industry trends at home and abroad► FSC: Fintech in Korea and digital transformation strategy in financial sectors► KFTC: Open banking in Korea► FSI: Financial data security in the 4th industrial revolution► VISA-Fintech Center Korea: Sharing successful collaboration lessons between global financial company and fintech► MAS: Future of fintech in post-COVID-19 era► Stone Chalk: Fintech trends in Australia► World Bank: Digital finance for crisis response and economic development – Role of the WB► KPMG: Korean fintech industry in 2020 policy trends► KOSCOM: Financial cloud computing and compliance in financial services► FSI: Security evaluation trends of cloud service providers in financial sectors► Regtech suptech showcases(VIRTUAL EXHIBITION HALLS) The six virtual exhibition halls are organized into a fintech ecosystem hall, a financial enterprise hall, a fintech start-up hall, a fintech scale-up hall, a big tech hall and a global enterprise hall, participated by about 150 entitiesTo help attract investment for the K-Growth fund, a major source of fintech investment operated by the Korea Growth Investment Corporation, a shortcut to fintech investors’ relations will be placed on top of the main page.(ONLINE JOB FAIR) HR managers from 35 financial companies and fintech firms will provide information about job openings, nature of work and qualities they look for in new hires. About a dozen companies have plans t
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May 25, 2020
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May 14, 2020
- Overview of Financial Regulatory Sandbox
- The FSC has been operating a financial regulatory sandbox program since April 1, 2019 to promote competition and innovation in the financial industry and provide more benefits to consumers.OVERVIEWA total of 102 ‘innovative financial services’ have been designated so far through fourteen evaluation committee meetings. Under the regulatory sandbox program, the designated firms are granted exemptions from licensing and other sales regulations for up to four years. The evaluation is based on the level of innovativeness, potential contribution to consumer convenience, and the soundness and feasibility of business plan.Among the 102 designated service providers, fintech firms (54 cases, 53%) made up a majority, followed by financial institutions (39 cases, 38%), IT firms (6 cases, 6%) and public sector institutions (3 cases, 3%).By service types, banks were most numerous (16 cases), followed by insurance services (15 cases), capital markets-related services (15 cases), loan comparison services (14 cases), payment cards (13 cases), data services (12 cases), electronic finance (11 cases), foreign exchange (3 cases) and others (3 cases).As of now, 36 ‘innovative financial services’ are at the stage of market test with 66 more expected to be launched in the first half this year.FINANCIAL INNOVATIONINCREASING BENEFITS TO CONSUMERS: a) The shift away from a supplier-driven market toward a more consumer-oriented environment has lowered costs for financial services in the form of interest payments, insurance premiums, etc., b) With the launching of easy-to-use financial services in everyday life, consumer access to financial services has been improved, c) Development of specific services tailored to the needs of SMEs and small-scale businesses has helped extend more financing opportunities to those that had been traditionally unable to access financial services, d) Innovative financial services have contributed to addressing various social problems in the areas of renewa
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May 13, 2020
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May 11, 2020
- Financial Data Exchange Platform Launched
- FSC Vice Chairman Sohn Byungdoo attended a launch event of the financial data exchange platform on May 11. During his congratulatory remarks, Vice Chairman Sohn stressed the importance of turning the current crisis situation into an opportunity and to continue to work on the government’s post-COVID-19 innovation in digital finance. The financial data exchange platform will be test launched to provide a secure one-stop distribution service.KEY FUNCTIONS► HIGH-SECURITY DATA EXCHANGE: a) Provide a highly secure data delivery method which allows the user to analyze and utilize data within the platform, b) Provide the FSI with the tools to safely transfer data during the exchange process, c) Prevent data leakage by having a thorough internal security control system► SAFE PROVISION OF PSEUDONYMIZED ANONYMIZED DATA: Confirm the appropriateness of the pseudonymized and anonymized data, as well as the information protection measures of the data seeker prior to the data transfer► DATA DISTRIBUTION CONVERGENCE: Designate the FSI, Korea Credit Information Services and Korea Financial Telecommunications Clearings Institutes as the financial data specializing institutions authorized to carry out data convergence and other relevant tasksFURTHER PLANS► DATA DISTRIBUTION GUIDELINES: Establish financial data distribution guidelines detailing the types and utilization of data products, distribution process, data standards and pricing details, things to consider prior to signing contracts, post-distribution management, etc.► DATA EXCHANGE VOUCHERS: Provide data vouchers to promote data exchange transactions at the onsetEXPECTATIONThe government expects that the financial data exchange platform will help establish a safe and secure marketplace for the distribution of financial big data. It will also foster new data-driven business opportunities for fintech start-ups and promote data convergence and utilization with non-financial data, which will lead to the development of ne
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May 11, 2020
- 2020 Online Korea Fintech Week to Start May 28
- The FSC will hold the 2020 Online Korea Fintech Week from May 28. With the theme of “Fintech for Open Innovation,” this year’s virtual expo will feature special information sessions, virtual exhibitions and an online job fair.The following is a schedule of the virtual expo.(OPENING SESSION) Welcoming remarks, congratulatory remarks by key dignitaries(SPECIAL SESSIONS) Key information sessions and seminars about open innovation, industry trends in domestic and foreign marketsa) FSC: Digital finance innovation in Koreab) FSS: Showcasing regtech and suptech firmsc) KPMG: Korean fintech industry in 2020 policy trendsd) World Bank: Digital finance for crisis response and economic development – Role of the WBe) VISA-Fintech Center Korea: Sharing a successful collaboration lesson between a global financial company and a fintechf) KFTC: Open banking – achievements and futureg) FSI: Financial data security in the era of 4th industrial revolutionh) KOSCOM: Financial cloud computing and compliance in financial services(ONLINE JOB FAIR) Co-hosted by the Fintech Center Korea and Korea Internet Security Agency and participated by 34 hiring institutions looking for 40 new hires(VIRTUAL EXHIBITIONS) The six virtual exhibition halls will be organized into a fintech ecosystem hall, a financial enterprise hall, a fintech start-up hall, a fintech scale-up hall, a big tech hall and a global enterprise hall, participated by about 150 firms(CYBER VOICE PHISHING PREVENTION HALL) Introduce voice phishing prevention app and the relevant technology and provide education on how to detect voice phishingFor further information, please contact the Fintech Center Korea via email at fintechweek@fintechcenter.or.kr or by phone at +82-70-4150-4490 and +82-70-8873-9006.* Please refer to the attached PDF for details.
