You Can Now Shop and Order Food Using Your Bank App

'Preparation of Measures to Improve Digital Finance Regulations and Systems'

[Asia Economy Reporter Kim Hyo-jin] Shopping and food ordering will also be possible through bank applications (apps).

On the 10th, the Financial Services Commission announced that it held the 5th 'Digital Finance Council' chaired by Vice Chairman Do Gyu-sang and prepared the 'Digital Finance Regulation and System Improvement Plan' containing such content.

At the Digital Finance Council launched last September, various regulatory system improvement plans for fair competition among existing financial companies, big tech (large information and communication companies), and fintech (financial technology) companies were discussed.

The council plans to improve 40 out of 62 cases where improvement was deemed necessary and review 15 cases as mid- to long-term tasks.

Accordingly, banks are expected to be able to conduct various forms of platform-based businesses in the future. Banks will enter financial and lifestyle platform businesses such as food ordering, real estate services, and shopping, just like big tech companies. The financial authorities plan to complete a research project to review regulatory improvement measures related to this by the end of this year and present specific improvement plans in the first half of next year.

As a result, consumers will be able to use more diverse services, and small business owners are expected to benefit from increased sales due to low fees and financial services based on sales data.

In addition, to ensure fair competition between big tech and credit card companies, the financial authorities plan to allow credit card companies to engage in the comprehensive payment business, which is currently scheduled to be introduced. Comprehensive payment business operators can concurrently engage in certain foreign exchange operations, deferred payment operations, and MyData business.

This policy by the financial authorities reflects concerns that credit card companies, which only hold card-based information, may be disadvantaged if big tech platforms enter the comprehensive payment business and provide personal financial management services based on customer accounts.

The financial authorities also plan to establish a business regulation system for big tech financial platforms amid concerns about abuse of market dominance and user harm related to big tech's entry into financial platforms.

At the same time, as one of the institutional improvement tasks to revitalize the digitalization of the financial industry, the financial authorities decided to ease the face-to-face obligation for insurance planners' contracts. Considering the spread of non-face-to-face transactions, they plan to promote various non-face-to-face solicitation regulation improvements, such as easing the face-to-face obligation to at least once and allowing hybrid sales methods across channels.

Accordingly, a transaction method may be introduced where insurance company call center employees fulfill the obligation to recommend and explain, and consumers apply via mobile.

They also plan to activate the development of insurance products using health information. Although the amendment of the Three Data Laws established the legal basis for the use of pseudonymized information, pseudonymized health information has not been opened to insurance companies. They intend to discuss the use of pseudonymized health information with the Ministry of Health and Welfare, the National Health Insurance Service, and others.

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