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.
Apr 29, 2021
- Short Selling to Resume for KOSPI 200 and KOSDAQ 150 Stocks from May 3
- The FSC announced that stock short selling will resume for KOSPI 200 and KOSDAQ 150 stocks beginning on May 3 as the authorities completed making necessary improvements to the system. The improvements made to the short selling system include the following. a) Introduction of stronger monetary sanctions and criminal penalties on naked short selling and other illegal short sale activities (in effect from April 6) b) Establishment of illegal short selling detection system (in place from March 16) c) Expansion of short selling access and opportunities for retail investors (KRW2.4 trillion in stock lending becoming available compared with KRW40 billion at the end of 2019) d) Overhaul of the market maker system to reduce market makers share of short selling volume With the partial resumption of short selling, the authorities will closely monitor markets to expand the availability of statistical information on short selling activities and to maintain a quick response system. Statistical data on short selling can be accessed at the Korea Exchanges website (http://data.krx.co.kr). * Please refer to the attached PDF for details.
Apr 28, 2021
- Open Banking Services Available from Savings Banks
- The FSC announced the availability of open banking services from savings banks from April 29, 2021. From next month, credit card companies are also expected to join open banking services. Since its first launch in December 2019, open banking in Korea has become widespread with the cumulative number of subscription reaching about 76.6 million with more than 138.5 million accounts registered as of April 25, 2021. In order to promote further development of open banking, the FSCannouncedmeasures to expand participating institutions at the 3rd digital finance meeting held on October 21, 2020.As a result, about one hundred banks, fintechs, mutual finance companies and securities firms have joined and are providing open banking services as of April 25, 2021. From April 29, seventy-three savings banks will also begin to provide open banking services through their mobile apps or websites with six other savings banks expected to join as soon as they finish developing IT systems. With open banking becoming available from savings banks, open banking is now provided by all deposit-taking financial institutions. As such, it is expected to further enhance user experience and consumer convenience. In this regard, growing competition between financial institutions is also expected to contribute to their overall digital competitiveness. The FSC will continue to promote innovation in the financial industry and work to expand open banking to credit card companies from the end of May this year. * Please refer to the attached PDF for details.
Apr 20, 2021
- Financial Authorities to Hold Online Information Sessions for 'Innovative Financial Service' Providers
- The FSC announced that the financial authorities will hold online information sessions on the regulatory sandbox programbetween April and June for forty-two innovative financial service providers that showed interest in attending. The online information session (online.fintech.or.kr) will be held on every Tuesday, Wednesday and Thursday from April 21 until June 2 in order to more actively communicate with businesses and seek solutions to their needs. Officials from the FSC, FSS and Korea Fintech Center will answer questions and provide explanations on the additional benefits granted by the revised Special Act on Support for Financial Innovation which is scheduled to go into effect from July 21. The innovative financial service providers that are not able to join in the April-May sessions and wish to participate in online information sessions scheduled for June-July should apply at online.fintech.or.kr by Thursday, May 20, 2021. In the second half of this year, the authorities plan to hold information sessions for fintech labs operated by financial institutions. * Please refer to the attached PDF for details.
Apr 14, 2021
- Three More 'Innovative Financial Services' Added to Financial Regulatory Sandbox
- The FSC designated three additional financial solutions as innovative financial services on April 14, bringing the total number of designated services to 142 since the regulatory sandbox was first launched on April 1, 2019. The FSC also made changes to the supplemental requirements of four previously selected businesses and extended the regulatory exemption period on eleven other services. Overview of Newly Added Innovative Financial Services 1.A blockchain-based digital real estate securities platform which is expected to expand retail investors investment opportunities in small- and medium-sized commercial properties (Lucentblock 6 trust companies, expected in H2 2021) 2.A digital real-name verification service for bank branch visitors which does not require customers to present their physical ID verification cards (Busan Bank, expected in Jun. 2021) 3. A mobile-based contactless bank account opening service using facial recognition technologies that is expected to boost consumer convenience for those who are unfamiliar with using video calls for identity verification purposes (KEB Hana Bank, expected in Sep. 2021) * Please refer to the attached PDF for details.
Apr 13, 2021
- 7th Digital Finance Meeting Discusses Guidelines on the Use of AI Technologies in Financial Services
- Vice Chairman Doh Kyu-sang held the 7th consultative body meeting on digital finance via teleconference on April 13 and discussed potential risks of digital transformation in financial sectors, establishing guidelines on the use of AI technologies in financial services and plan for the operation of the consultative body subcommittees. At the meeting, Vice Chairman Doh spoke about the progress made by the consultative body meetings as they helped to resolve differences of interests between big techs, fintechs and financial companies. Amid a deepening digital convergence taking place throughout the economy, Vice Chairman Doh stressed the importance of continuing with efforts to seek innovative solutions in financial sectors. The following is a summary of Vice Chairman Dohs remarks. (Digital Transformation and Potential Risks in Financial Sectors) Digital transformation is an inevitable change throughout the world. Although there are positive effects, such as expanded consumer choice and increased efficiency, there also needs to be policy efforts to prepare for potential risks. As such, the FSC will first strengthen risk management on the impact of a growing number of new players entering the financial markets. As competition between big techs and financial institutions deepens, the authorities will keep a close eye on for any changes in their sales behavior, potential damages to consumers and the possibility of debilitating soundness of financial companies. Second, the FSC will lay the groundwork upon which new technologies can be used safely. The authorities will work to ensure transparency and fairness in the process of using AI and other innovative technologies in financial services, while closely inspecting for the possibility of skewness which may result from financial companies using similar algorithms. Third, the authorities will closely monitor financial sector risks, such as the possibility of risk transfer in the process of non-financial firms engaging in fi
Apr 13, 2021
- Government Approves Revised Law to Support Innovative Financial Services
- The government approved the revision to the Special Act on Support for Financial Innovation during a cabinet meeting held on April 13 to make improvements to the financial regulatory sandbox program and support innovative financial service providers. The revised Act allows innovative financial service providers to file requests for regulatory improvements while extending the period of regulatory exemption for an additional year and six months if the authorities decide to accept the request and make relevant changes to the regulation. Key Revisions (Filing Request for Regulatory Improvement) The innovative financial service providers may file a request for regulatory improvement to the FSC and other relevant authorities three months prior to the expiration of their designation status. (Establishing Specific Procedures for Review Process) Upon receiving a request for a regulatory improvement, the FSC or other relevant authority will introduce the matter to the relevant committee to decide the necessity of regulatory reform and make relevant changes to the regulation. (Extension of Regulatory Exemption Period) Upon the authoritys decision to make relevant changes to the regulation, the regulatory exemption period applied to the innovative financial service will be extended for up to an additional year and six monthsfrom the time of the expiration of their designation status. Schedule The revised Act will take effect from July 21, 2021 after the promulgation on April 20. The FSC will work to ensure a smooth implementation of the revised law. At the same time, the authorities will help to better inform innovative financial service providers about the changed rules taking place. * Please refer to the attached PDF for details.
Apr 08, 2021
- Meaningful Improvements in Financial Services Made Possible by Financial Regulatory Sandbox
- The FSC announced key achievements and progress in the operation of the financial regulatory sandbox program on April 8. Background The financial regulatory sandbox program was launched on April 1, 2019 to promote competition and innovation in the financial industry while improving convenience for consumers. The sandbox program allows businesses designated as innovative financial service providers to enjoy regulatory exemptions for up to four years, so that they can test their innovative business ideas and technologies. In addition, the revised Special Act on Support for Financial Innovation allows designated firms to request regulatory improvements and the government may decide to grant an additional regulatory exemption period of one year and six months. Since April 1, 2019, the FSC has designated 139 innovative financial services in total with 78 such services currently being tested in the market and a total of 108 innovative financial services expected to be in service within the first half of 2021.For innovative services that have been tested to bring about significant consumer convenience and guaranteed security, the government has worked to improve regulations in a prompt manner. Out of 68 such regulations, improvements have been made to 14 of them with plans to revamp 22 regulatory items currently being prepared. For innovative businesses, comprehensive support and consulting is being provided through the Fintech Center Korea, from the stage of sandbox program application to testing to service launch. Chairmans Remarks (Progress in Financial Regulatory Sandbox) The financial regulatory sandbox program has become an essential policy to promote innovation in the financial industry and help foster fintechs. Bold attempts at innovation through the sandbox program have led to meaningful changes in our daily lives. First, the public is experiencing significant financial innovation in their daily economic activities. The number of users of innovative financial serv
Mar 24, 2021
- Application Opens for Participating Businesses to the 2021 Korea Fintech Week
- The FSC announced that the application for the 3rd Korea Fintech Week will be open from March 24 to April 7 for prospective businesses wishing to showcase their innovative fintech services. The 2021 Korea Fintech Week is scheduled to be held from May 26 to 28 under the theme of fintech and sustainable financial innovation. The offline to online (O2O) international fintech expo will provide diverse promotional, vocational, educational and networking programs and opportunities that will help raise awareness on fintechs and accelerate financial innovation. The event will feature five online exhibition halls and two online job fair halls. More than one hundred fintech firms will be given opportunities to present their services in five virtual exhibition hallsthe fintech start-up hall, fintech scale-up hall, fintech supporter hall, financial enterprise hall and global enterprise hall. The online job fair halls will be hosted by some forty business entities and include both financial companies and fintechs. While there are no participation fees, participating businesses need to prepare their own digital promotional materials. Application will be accepted from 9:00 am Wednesday, March 24 until 6:00 pm Wednesday, April 7. Prospective participants should download the application form from www.fintech.or.kr and submit their applications along with supporting materials via email at email@example.com. The selection results will be announced on Friday, April 16 at www.fintech.or.kr. * Please refer to the attached PDF for details.
Mar 11, 2021
- New Deal Fund Makes 1st Business Investment in Smart Health Care Sector
- FSC Chairman Eun Sung-soo visited Biocores biotechnology division in Yongin-si on March 11 and delivered congratulatory remarks as the company has been selected as the first recipient of investment from a New Deal fund. In his remarks, Chairman Eun talked about the importance of the first New Deal fund investment setting a best practice example for subsequent investments in both green and digital New Deal areas. Chairman Eun also spoke about the importance of boosting private sector investment in New Deal ecosystem, which will help foster the economys future growth areas. In this regard, Chairman Eun pledged that the government will provide strong support to facilitate investment in New Deal businesses and infrastructures. * Please refer to the attached PDF for details.
Mar 03, 2021
- FSC Holds Meeting on Developing Corporate Finance Platform to Support Innovative Businesses
- Vice Chairman Doh Kyu-sang held a meeting on corporate finance via teleconference on March 3 and discussed ways to develop a corporate finance platform to more effectively provide financing support to innovative businesses. The meeting also discussed recent trends in corporate finance in both traditional and newly emerging industries and policy issues surrounding corporate finance in a post-COVID-19 era. The following is a summary of Vice Chairman Dohs opening remarks. (Policy on Corporate Finance) The COVID-19 pandemic has caused abrupt changes in global industrial structures. The acceleration of transition toward more digital and contactless economic activities, transformation of manufacturing into services and that of services into platforms have led to increased competition across industries. A green transition toward an eco-friendly and low-carbon economy is also taking place rapidly. These changes in the economic and industrial structures are more likely to place burdens on SMEs and middle market enterprises than they are to large companies. In this regard, there are also concerns about grim consequences in a post-pandemic era of failing to act preemptively now. Therefore, it is necessary to ensure that there are policies in place to help SMEs and middle market enterprises to more effectively respond to the structural changes taking place across industries. (Corporate Finance Platform) These changes also require a fundamental shift in ways corporate finance is handled in the financial industry. The current industrial classification used in the financial industry does not fully take into account rapid changes taking place in industries, technologies, etc. There are also limits and restrictions in the current system in terms of providing sufficient funds for businesses to support their attempts at transforming a business or exploring a new business area as financial institutions may lack sufficient understanding about the most recent industry trends or technolog
Feb 22, 2021
- FSC Introduces Guidelines on MyData Services and Establishes MyData Support Center
- The FSC introduced guidelines on MyData services on February 22, which contain details about the consumers data privacy rights, scope of data transfers, operational procedures, obligations for service providers and so on, as MyData businesses will begin to offer their services using standardized API beginning on August 4, 2021. In addition, MyData support center has been set up at the Korea Credit Information Services to facilitate a seamless operation for both service providers and consumers. The center will provide support for quick resolution of conflicts and consumer complaints through MyData web portal. Guideline Details I. Scope of Data Provision The guidelines specify the types of consumer credit and financial data that can be provided through MyData services from a range of financial sectors, such as credit finance and financial investment businesses, insurance businesses, credit card companies, electronic financial services, etc. A further expansion on the types of consumer data available for MyData will be reviewed and decided in the future. II. Protection of Consumer Rights The guidelines contain measures to ensure that consumers are giving consent to data transfer with sufficient awareness of their data privacy rights through the use of easy-to-understand language and visual contents while allowing freedom of consent, denial, withdrawal, etc. To strengthen data protection, MyData businesses will be required to make their service cancellation process easy and completely remove consumer credit data from their platform when cancellation occurs. MyData firms will be prohibited from offering excessive rewards as sales pitch to prevent excessive competition in the industry. For the purpose of data security management, MyData firms will be subject a set of specific data security standards and the suitability and vulnerability tests. III. Data Transfer Process First, data subject files a data transfer request at a financial institution after choosing specific ty
Feb 18, 2021
- FSC Designates Two More Financial Solutions as 'Innovative Financial Services'
- The FSC added two more financial solutions to the financial regulatory sandbox program on February 18, bringing the total number of innovative financial services to 139 since the sandbox program was launched on April 1, 2019. The FSC also made a decision to extend the designation and regulatory exemption period on five other previously selected innovative financial services. Overview of Newly Added Innovative Financial Services 1. A small-sum deferred payment service that allows consumers to make a payment on the remaining portion of the total charged amount after first using their online reward points based on a pre-determined individual deferred payment limit calculated according to the Alternative Credit Scoring System (Naver Financial, expected in Apr. 2021) 2. An online stock gift card service that allows consumers to purchase stock gift cards on easy-to-access e-commerce platforms and use them for trading in domestic and overseas securities markets (eBest Investment Securities, expected in Aug. 2021) * Please refer to the attachdd PDF for details.
Feb 15, 2021
- 3rd Korea Fintech Week to be Held in May
- The FSC announced its plans to hold the 2021 Korea Fintech Week from May 26 to 28 under the theme of fintech and sustainable financial innovation. The third annual global fintech expo will kick off its first day at Conrad Seoul with live streaming of onsite activities available online and then move on to exclusively virtual events for the second and third days. The offline to online (O2O) availability of diverse promotional, vocational, educational and networking programs and opportunities will help boost awareness on fintechs and accelerate financial innovation. Key Features (User Experience) More dynamic and engaging programs will be prepared for online visitors with real-time QAs and communication made possible. (Job Fair) Fintech job talks will be held to offer real-time QA opportunities to fintech job seekers. (Investment) More fundraising opportunities will be available for fintechs through IR and venture capital consulting programs. (Education) Online educational programs will be offered with certificates Registration Schedule Preliminary application for participating firms will be open from the third week of March and pre-registration will be available from the first week of May from the Korea Fintech Week website (www.fintechweek.or.kr/2021). Viewing is free for students and the general public. In November this year, the FSC plans to hold an additional global fintech expo offline if the coronavirus conditions are permissible. For more information, please contact the Fintech Center Korea via email at firstname.lastname@example.org or by phone at +82.2.6375.1541. * Please refer to the attached PDF for details.
Feb 09, 2021
- Digital Finance Meeting Discusses Ways to Improve Rules for Fintechs and Big Techs
- Vice Chairman Doh Kyu-sang held the 6th consultative body meeting on digital finance via teleconference on February 9 to discuss ways to improve rules for both fintechs and big techs and to examine areas for further improvements in the financial regulatory sandbox program. The following is a summary of Vice Chairman Dohs remarks. (Rules on Fintechs and Big Techs) Since October last year, the FSC has held talks with both fintechs and big techs on ten different occasions. Through these meetings, industry officials have suggested a total of seventy-four areas where regulatory reforms are needed. On fifty-two of them, the FSC will immediate take actions to improve the rules. On eleven others that are considered as mid- to long-term projects and require coordination with other ministries or further considerations for their impact on financial consumers, the FSC will continue to seek ways to make improvements. On the remaining eleven areas where it is deemed to be difficult to seek immediate change at the moment, the authorities will continue to closely monitor the trends to make improvements when conditions become permissible. On regulatory reforms to promote fintech innovation, the FSC will pursue the following policies. First, the FSC will work to create an environment where new digital businesses can be quickly launched and flourish. As many fintechs and platform service providers have requested, the authorities will work to provide strong support for launching new and innovative financial services through platforms. To this end, the FSC will ensure the launch of new innovative financial services through the regulatory sandbox program while working for a prompt enactment of the relevant amendments to the Electronic Financial Transactions Act. To build a strong foundation for the MyData industry, the FSC will promptly work to provide medium- and small-sized fintechs with support for their API data standardization and build a one-stop integrated MyData authentication sy
Feb 08, 2021
- FSC Selects Another Fintech as Designated Agent to Provide Financial Services
- The FSC selected Minds Lab as a designated fintech to provide financial services on behalf of Hyundai Marine Fire Insurance on February 5. Minds Lab will provide a one-stop automated loan processing service using artificial intelligence (AI) and voice recognition technologies. It will help reduce costs and save time while improving service standards. The FSC has made thirty-four such designations so far since May 2018. Application for the next round will be open from February 15 to April 30, 2021, with the results expected to be announced in July this year. * Please refer to the attached PDF for details.
Feb 04, 2021
- New Deal Funds Worth KRW200 Billion Agreed for Future Car and Industrial Digitalization
- FSC Chairman Eun Sung-soo visited Hyundai EV Stationin Seoul on February 4 and delivered congratulatory remarks at an MOU signing event for the promotion of investment cooperation in the areas of future car and industrial digitalization. MOU on Investment Cooperation The MOU highlights an agreement toward a mutual cooperation between the relevant industry entities, financial institutions and the New Deal fund operators (KDB and Korea Growth Investment Corp.) in creating KRW200 billion worth of feeder funds to be invested in the areas of future car and industrial digitalization. To this end, Hyundai Motor Group, the Korea Evaluation Institute of Industrial Technology (KEIT) and the Korea Institute for Advancement of Technology (KIAT) will collectively invest a total of KRW90 billion in New Deal funds in 2021. Over the next five years, the financial institutions will also make matching investments worth KRW1.1 trillion in New Deal funds. Summary of Chairmans Remarks Since the government first announced its plans to create the New Deal fund worth KRW20 trillion in September last year, a master fund was created on January 28 with fiscal investment in the amount of KRW510 billion. In January, fund managers submitted their applications with proposals in the amount of KRW9.7 trillion, which is well over three times the initial investment goal of KRW3 trillion for this year. Their proposals showed an appropriate distribution across all New Deal sectors and demonstrate the significance of digital and green industries in a post-pandemic era. The MOU signed today on investment cooperation between the relevant industry and financial officials is thus significant for the following reasons. First, in order to speed up the creation of New Deal funds, matching investments from the private sector are needed. With the MOU in place, we can expect to see a more speedy creation of feeder funds in the areas of future car and industrial digitalization. Second, in order to generate tangibl
Feb 04, 2021
- FSC Holds 1st Taskforce Meeting to Promote Role of Insurers in Health Care-related Services
- The FSC held the first taskforce meeting on promoting the role of insurance companies in providing health care-related services with the relevant ministry and industry officials on February 4. At the meeting, officials discussed major health care industry trends in overseas markets and the domestic health care market environment for insurance companies. To boost the effectiveness in operating the taskforce, the FSC will separately operate an advisory group and a working group to draw up and search for policy tasks. While working to accelerate a data convergence between the health care and financial industries, the taskforce will explore diverse areas to make improvements, such as expanding the use of digital health devices for insurance companies. * Please refer to the attached PDF for details.
Jan 27, 2021
- FSC Grants MyData Business Licenses to 28 Firms
- The FSC granted MyData business licenses to twenty-eight firms on January 27 as the authorities decided that they all satisfy the requirements set forth by the Credit Information Use and Protection Act. The approved entities include five banks, six credit finance businesses, one financial investment firm, one mutual finance business, one savings bank and fourteen fintechs. The approved entities will begin providing MyData services after setting up standard APIs by August 4, 2021, which will allow the provision of safer and more convenient MyData services. In order to ensure a smooth takeoff of the MyData services, the authorities will distribute a guideline in February that specifies details about the scope of data transfer, safe means of data transfer, measures for consumer protection, etc. Beginning in March, the FSC plans to begin another round of preliminary application process for those that wish to enter the MyData industry. * Please refer to the attached PDF for details.
Jan 27, 2021
- FSC Designates Additional 'Innovative Financial Service' for Regulatory Sandbox
- The FSC designated two more innovative financial service providers for its regulatory sandbox program on January 27, bringing the total number of such designation to 137 since launching the financial regulatory sandbox program on April 1, 2019. The newly designated service is a credit card service for underaged family members that allows parents to set the maximum usage limit as well as the places where it can be used (Samsung Card Shinhan Card). The service is expected to boost the convenience in small-sum financial transactions and promote responsible consumption habits among high school and middle school aged students. The service is expected to be available in June this year. * Please refer to the attached PDF for details.
Jan 19, 2021
- Public-private Joint Investment to Create KRW100 Billion Fund for Semiconductor Industry in 2021
- FSC Chairman Eun Sung-soo visited SK Hynixs Icheon campus on January 19 and delivered congratulatory remarks at a public-private joint investment agreement ceremony held for the mutual cooperation between SK Hynix, the Korea Development Bank, Export-Import Bank of Korea and NH Nonghyup Bank in raising a total of USD3 billion between 2021 and 2025. To promote a balanced growth of the countrys semiconductor industry and its ecosystem, SK Hynix, the KDB and KEXIM Bank also agreed to make contributions in creating a fund in the amount of KRW100 billion, which will be used for making investments in SMEs and middle market enterprises in the semiconductor industry. CHAIRMANS REMARKS Chairman Eun highlighted the significance of the joint investment agreement and stated that there should be continuous efforts at making investments in future-oriented projects. In this regard, Chairman Eun also touched upon the importance of a balanced growth between large companies and smaller sized firms that collectively make up the industrys ecosystem. To encourage private sector investments, Chairman Eun explained that the government will create New Deal funds in the amount of up to KRW4 trillion and provide New Deal financing support worth about KRW18 trillion through state-backed financial institutions lending support and investment programs. While funneling funds to the new growth sectors, Chairman Eun said that the government aims to select more than 400 innovative firms this year for providing comprehensive support package. * Please refer to the attached PDF for details.