As President Moon Jae-in called for measures to ease the separation of banking and commerce on August 7, financial reform led by Financial Services Commission (FSC) Chairman Choi Jong-ku is expected to gain traction. Choi expects that Internet-only banks will bring about fintech innovations and contribute to the growth of the domestic financial industry.
President Moon directly called for steps to ensure that Internet-only banks can grow and stimulate financial innovation. Choi said, “It is true that financial innovations have been still unsatisfactory in the view of financial consumers. We will promote competition and innovation by relaxing entry regulations of the financial industry and drastically get on with financial innovation tasks, including the introduction of a financial regulatory sandbox, in the future.”
Currently, the FSC regularly evaluates the level of competition in the financial industry and reform regulations on entry to the financial industry by lowering entry barriers to all industries and improving transparency of the entry process.
In addition, it dramatically innovates regulations in order to specifically create new jobs, strengthens supports for fintech companies, activate big data in the financial sector, improve the competitiveness of the data industry and reinforce information protection. To this end, the FSC is working on the legislation of “Financial Innovation Special Law” and “Credit Information Law.”
Choi said, “The FSC will more actively help Internet-only banks and the fintech and big data industries organically develop together. We will also actively cooperate with the National Assembly to discuss the legislation so that the bills related to financial innovation can come to fruition as soon as possible.”