Choose Customized Loan Terms by Comparing Products... Combine Telecom and Financial Information to Detect Voice Phishing

Financial Services Commission Designates 7 New Innovative Financial Services

[Asia Economy Reporter Kim Hyo-jin] A service that supports customized selection of loan conditions by comparing products from multiple financial institutions will be launched. A service that uses both telecommunication information and financial information to detect and guide users on financial fraud such as voice phishing will also be introduced.

The Financial Services Commission announced on the 22nd that it designated seven new innovative financial services, including these, at its regular meeting on the 18th. Since the implementation of the financial regulatory sandbox in April last year, a total of 93 innovative financial services have been designated in about one year.

Onlinepo and SK Planet will each launch online loan comparison and recruitment platforms in the first half of this year and in August, respectively. These platforms help customers select customized loan conditions by comparing various financial institution products based on customer information such as e-commerce usage records. This is a result of granting an exception to the exclusive loan recruiter system, which required loan recruiters to sign loan recruitment contracts with only one financial company. The Financial Supervisory Authorities expect that once this service is implemented, it will minimize the search costs for loan demanders by enabling non-face-to-face loan comparisons, improve consumers' bargaining power by resolving information asymmetry between financial companies and loan demanders, and have the effect of lowering interest rates.

Provided by the Financial Services Commission

A service that uses the caller’s telecommunication information such as roaming status upon receiving calls or text messages, activation address and activation history, call forwarding information, as well as financial information from credit information companies, to detect and guide on financial fraud such as voice phishing will also be available. Under the current Credit Information Act, credit information companies, providers, and users must obtain individual consent from the information subject when collecting, using, or providing personal credit information. However, an exception has been made allowing telecommunication companies and credit information providers to collect, use, and provide the caller’s personal credit information and personal identification information without the caller’s consent.

By sharing information between credit information companies and telecommunication companies to prevent financial fraud in advance, consumer damage is expected to decrease and a social safety net will be established. The Financial Authorities designated this as an innovative financial service with conditions such as preparing and implementing measures to prevent service abuse including limits on the number of service provisions per user per day, and monitoring the accuracy of financial fraud diagnosis and service operation status to report to the Financial Services Commission. NICE Information Service, SKT, KT, and LG Uplus are expected to launch this service in August.

Elpin will launch a service in September that allows easy identity verification and withdrawal consent using USIM when registering withdrawal accounts for e-commerce and other purposes. The Financial Authorities have allowed withdrawal consent for collection transfers to be conducted via USIM authentication methods in addition to those prescribed by the Electronic Financial Transactions Act. It is expected that authentication costs will be reduced by more than 50% (about 50 KRW per case) and time will be shortened, thereby increasing consumer convenience.

A service that allows simple insurance subscription through handwritten signatures of corporate employees on mobile devices instead of complicated document submission procedures when contracting corporate insurance will also be introduced. Hyundai Marine & Fire Insurance will launch this in June. This is the result of recognizing handwritten signatures on mobile screens of corporate employees as handwritten signatures for corporate and business insurance contracts. It is expected to improve corporate convenience and minimize coverage gaps for small and medium-sized enterprises and small business owners. The subscription process, which used to take 10 steps, will be reduced to 4 steps, and the time required, which used to be 3 to 5 days, will be shortened to 10 to 20 minutes.

Shinhan Investment Corp. plans to launch a service in October that allows consumers to make small investments in overseas stocks using mileage, cashback, points, etc. from partner companies. The Financial Authorities granted an exception that the act of partner companies providing mileage, etc. to consumers’ Shinhan Investment accounts to be used as funds for purchasing overseas stocks (Stockback service) does not fall under investment brokerage under the Capital Markets Act. It is expected to reduce expired points through rapid asset conversion of mileage and other rewards.

KT is preparing a service in partnership with Busan City to issue the Busan local gift certificate "Busan Dongbaekjeon," with Busan City managing and operating the funds so that they can be used as a payment method at affiliated stores within Busan City. This service is expected to be launched in July. By directly managing prepaid recharge funds, Busan City can utilize interest income, and transparency of local gift certificates will be enhanced, which is expected to activate resident participation.

Provided by the Financial Services Commission

This content was produced with the assistance of AI translation services.