"Leveling the Playing Field"... Eun Sung-soo and Heads of 5 Major Financial Groups Form 'Big Tech Council'

Eun Sung-soo, Financial Services Commission Chairman, Holds Breakfast Meeting with Heads of 5 Major Financial Groups
Agrees to Launch 'Big Tech Consultative Body' Amid Regulatory Discrimination Controversy
Continues Discussions on Further Extension of 'COVID-19 Loans' Maturities

Financial Services Commission Chairman Eun Sung-soo is having a breakfast meeting with the chairmen of the five major financial holding companies at a restaurant in Seoul on the 23rd. From the second left clockwise: Cho Yong-byeong, Chairman of Shinhan Financial Group; Kim Jung-tae, Chairman of Hana Financial Group; Kim Kwang-soo, Chairman of NH Nonghyup Financial Group; Son Tae-seung, Chairman of Woori Financial Group; Eun Sung-soo, Chairman of the Financial Services Commission; Yoon Jong-kyu, Chairman of KB Financial Group.

[Asia Economy Reporter Kim Hyo-jin] A 'Big Tech Consultative Body' involving financial authorities, the financial sector, and big tech (large information technology companies) is being established. This is based on a proposal from the financial authorities considering controversies such as 'regulatory discrimination' between big tech and traditional financial firms.

On the morning of the 23rd, Eun Sung-soo, Chairman of the Financial Services Commission, held a private breakfast meeting at a location in Seoul with KB Financial Group Chairman Yoon Jong-kyu, Shinhan Financial Group Chairman Cho Yong-byeong, Hana Financial Group Chairman Kim Jung-tae, Woori Financial Group Chairman Sohn Tae-seung, and NH Nonghyup Financial Group Chairman Kim Kwang-soo. The Financial Services Commission announced that Eun officially proposed participation in the Big Tech Consultative Body, stating, "Concerns coexist regarding fair competition issues between (big tech and) traditional financial sectors and the potential for systemic risk."

The Financial Services Commission is planning a consultative body that includes traditional financial firms, the big tech industry, supervisory authorities and related organizations, private experts, and civic groups. Through this, they plan to broadly discuss measures to create a fair competitive environment and consumer protection. The Financial Services Commission intends to sequentially discuss major issues, prepare comprehensive countermeasures based on these discussions, and then reflect them in next year's work plan.

The chairmen of the five major financial holding companies expressed concerns about fairness controversies such as a 'tilted playing field' and accepted Chairman Eun's proposal, expressing their intention to work towards constructive alternatives through this process.

Specifically, they raised concerns about ▲ regulatory fairness issues between credit cards and big tech ▲ the exclusive right of a single company to solicit loans, from which fintech companies are exempt ▲ the ease with which big tech, unlike financial holding companies, can provide information to affiliates ▲ and the imbalance in the scope of MyData exchangeability between financial firms and big tech.

Issues such as discrimination against card companies due to allowing postpaid payments by simple payment service providers and fee reductions related to fintech companies' use of financial payment networks were also raised.

Meanwhile, Chairman Eun requested continued cooperation regarding support programs for period industry partners and loan maturity extensions and interest repayment deferrals for small business owners, as the COVID-19 pandemic is still ongoing.

The financial holding company chairmen pledged to do their best to support the real economy sector financially until the COVID-19 pandemic ends. Regarding additional loan maturity extensions, they suggested that decisions should be made after comprehensively assessing the future trends of COVID-19's impact and agreed to continue detailed discussions with the financial authorities.

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