Customized Loan Condition Comparison, Fractional Stock Trading... 27 Financial Regulations Revised

Receiving Foreign Currency After Online Exchange Application
'Authentication Innovation' with Facial Recognition, etc.

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 20th that a total of 27 financial regulations will be improved through the financial regulatory sandbox system. The financial regulatory sandbox is a system that allows new financial services to be tested by granting exceptions to existing regulations.

The FSC plans to continuously improve related regulations to ensure that innovative financial services, which are allowed on a limited and temporary basis through the sandbox, can operate stably.

Accordingly, a service that allows financial consumers to check loan conditions by financial company online and then select and apply for the desired loan product is expected to become institutionalized and widespread in the future.

A service will also be introduced that allows users to apply for currency exchange online regardless of time and place, and then receive foreign currency at locations such as airport parking lots or airline counters. Plans are also underway to allow small overseas remittances through unmanned currency exchange machines.

The FSC will also introduce small remittance brokerage services, where small overseas remittance operators mediate remittances of other small overseas remittance operators through their overseas networks.

Regulatory improvements are also underway to enable financial companies to operate platform-based businesses such as MVNO (Mobile Virtual Network Operator), rental brokerage, and healthcare. Through this, the FSC expects opportunities for financial companies to enter new industries based on big data and platforms to expand.

"Expansion of Financial Companies' Entry into New Industries Based on Big Data and Platforms"
"Active Response to 'Post-Corona' Centered on the Sandbox"

A pilot service allowing individual investors to buy and sell overseas stocks in fractional units is also expected to become widespread in the future. The FSC plans to review various business models and prepare regulatory improvement plans to enable fractional trading not only for overseas stocks but also for domestic stocks.

A service that allows purchasing or gifting insurance coupons on online shopping platforms and using them when subscribing to insurance products is also being formally prepared.

The FSC is also promoting measures to simplify real-name verification and identity authentication in non-face-to-face financial transactions using new methods such as decentralized ID and facial recognition technology.

Work is underway to rationalize network separation regulations so that financial companies can establish separate financial technology research institutes and collaborate with fintech and IT companies to develop new technology financial services.

The FSC explained that among 62 regulations under the sandbox system, maintenance has been completed for 8 regulations, maintenance is in progress for 5 regulations, and maintenance plans are being prepared for 14 regulations.

An FSC official said, "We will actively respond to the digital transformation trend of finance due to the 4th Industrial Revolution and 'post-corona' with the sandbox as one axis," adding, "If the test results show great consumer benefits and verified stability, we will promptly start regulatory improvement work."

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