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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Feb 20, 2020
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Feb 13, 2020
- FSC to Hold Information Session on Revised Credit Information Act
- The Financial Services Commission will hold an information session on February 20, 2020 on the amendment of the Credit Information Use and Protection Act, which is scheduled to take effect starting August 5, 2020. The information session will provide useful information about the revised law, while offering the government a chance to listen to and gather opinions from diverse stakeholders. The FSC will revise relevant rules and regulations prior to the effective date while working to reflect public opinions.KEY FEATURES OF THE AMENDMENT► ESTABLISHING NEW LEGAL BASIS FOR USING AND ANALYZING BIG DATA- Pseudonymised personal information may be used without consent 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 in
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Jan 28, 2020
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Jan 21, 2020
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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 09, 2020
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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
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Dec 18, 2019
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Dec 16, 2019
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Dec 10, 2019
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Nov 28, 2019
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Nov 21, 2019
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Nov 20, 2019
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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
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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 30, 2019
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Oct 15, 2019
