South Korea's financial authorities are considering easing regulations to allow foreign financial companies, which operate business in the nation, to exchange information among their affiliates.
Foreign Bankers Group (FGB) consisting of CEOs of 42 foreign banks, held a luncheon with Financial Supervisory Service (FSS) Governor Yoon Seok-hun at Lotte Hotel in Seoul on November 14 to propose the improvement of the business environment. Foreign financial banks, which run both banking and securities business in South Korea at the same time, said they have difficulty in creating a synergy effect among affiliates due to regulations on information exchange restriction.
The financial authorities created a firewall not to share customer information among affiliates of financial companies without limits. An official from the FSS said, “The same firewall applies to affiliates of domestic financial groups. However, domestic affiliates are completely separated to operate the business, while foreign financial companies tend to connect banking business with securities business.”
In this regard, Yoon said, “We will make an effort to relieve regulations that is needed.” In fact, the FSS and the Financial Services Commission (FSC) have already decided to form a task force (TF) to discuss related improvement plans as part of “capital market innovation project” released by FSC on the 1st. Regarding to the TF, an official from the FSS said, “It is to find ways to reflect the industry’s demand within a limited range that will not cause consumer damage.”