Eun Sung-soo and 5 Major Financial Holding Company Chairmen Meet After 4 Months... "Need to Eliminate Discrimination Against Big Tech" (Comprehensive)

Financial Services Commission Chairman Eun Seong-su Meets with Heads of 5 Major Financial Groups for Breakfast After 4 Months
Financial Firms and Big Tech Establish Consultative Body: "We Must Level the Playing Field"
Discussion on Whether to Further Extend Loan Maturities

Eun Sung-soo, Chairman of the Financial Services Commission, 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 on the 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; Sohn 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, financial sectors, 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 reverse discrimination' between big tech and existing financial companies.

According to the Financial Services Commission (FSC) on the 23rd, Eun Sung-soo, Chairman of the FSC, held a breakfast meeting this morning at an undisclosed 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, NH Nonghyup Financial Group Chairman Kim Kwang-soo, and Woori Financial Group Chairman Sohn Tae-seung. This meeting between Chairman Eun and the five major financial group chairmen was the first in about four months since March. Originally scheduled for the 24th, it was moved up by one day to today.

At the meeting, Chairman Eun officially proposed participation in the Big Tech Consultative Body, stating, "Concerns coexist regarding fair competition issues between big tech and existing financial sectors, as well as the potential for systemic risks."

The FSC is planning a consultative body that includes existing financial companies, the big tech industry, supervisory authorities and related organizations, private experts, and civic groups. Through this, they plan to broadly discuss creating a fair competitive environment and consumer protection measures. The FSC intends to sequentially discuss key issues, prepare comprehensive countermeasures based on these discussions, and reflect them in next year’s work plan.

The five major financial group chairmen 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 can provide information to affiliates, unlike financial holding companies ▲ imbalance in the scope of MyData exchangeability between financial companies and big tech. Issues such as reverse discrimination against card companies due to allowing postpaid payments by simple payment service providers and fee reductions for fintech companies using the financial payment network were also raised.

Concerns over loan maturities in September... Financial Group Chairmen: "Financial Support Until the End of COVID-19"

Chairman Eun requested continued cooperation on support programs for period industry partners, loan maturity extensions, and interest payment deferrals for small business owners, as the COVID-19 pandemic is still ongoing. The financial group chairmen promised to do their best to support the real economy until the pandemic ends. Regarding additional loan maturity extensions, they suggested that decisions should be made after comprehensively assessing the future impact of COVID-19 and agreed to continue detailed discussions with the financial authorities.

There was also discussion about the role of the financial sector in the Korean New Deal promoted by the government. The Korean New Deal involves government funding of over 160 trillion won by 2025. Financial companies’ support is essential for the success of the project. In response, the financial group chairmen said, “Since the Korean New Deal can become a new investment destination that meets the diverse investment demands of the public, we will actively consider ways to participate.”

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