[New Year's Address] Kim Juhyun, President of the Korea Female Financial Association, "We Must Develop Beyond Credit Card Business into a Comprehensive Financial Industry"

Establishing a Sustainable Management Foundation
Amid Complex and Uncertain Business Conditions

Kim Juhyun, President of the Korea Federation of Credit Finance Associations

[Asia Economy Reporter Ki Ha-young] Kim Joo-hyun, Chairman of the Korea Credit Finance Association, emphasized that in the new year, "It is time for the card industry to show the market that it can develop beyond the traditional credit card business into a new form of comprehensive financial industry."

Chairman Kim stated in his New Year's address on the 31st, "The institutional framework for fair competition with big tech and fintech companies has been established."

He said, "More specific and diverse issues will continue to arise in the digital transformation process of card companies," and promised, "To support the industry's successful digital innovation, we will discuss various potential problems and institutional improvement measures through various digital finance consultation channels, and make multifaceted efforts including consultations with supervisory authorities."

Regarding the discussion on the re-estimation of eligible costs for merchant fees starting next year, he said, "We will consult with authorities and stakeholders on multifaceted measures to ensure reasonable cost estimation."

Chairman Kim emphasized, "Due to several rate reductions so far, the level of domestic credit card merchant fees is not high internationally, and it is also low compared to other various fees borne by small business owners," but added, "Since various issues may be raised, we will consult to ensure reasonable cost estimation."

Regarding the capital industry, he said, "We will support multifaceted efforts to secure new revenue sources and ensure that risk management to prepare for various management uncertainties is carried out reasonably." He added, "As some capital companies are experiencing difficulties due to tightening in the funding market, there is high interest from supervisory authorities and the market regarding risk management in the capital industry," and said, "We plan to induce proactive and active risk management by member companies through the 'Liquidity Risk Best Practice Guidelines.'"

He also promised to make various efforts to enhance consumer protection and secure trust. Chairman Kim stated, "In response to the advancement of digitalization and hacking technologies, we will create a safe usage environment for credit card payment infrastructure, such as using virtual card numbers when purchasing overseas goods," and added, "We will thoroughly prepare for financial security risks associated with the digital environment by building an effective fraud response network through close cooperation with the Financial Security Institute and international brand companies."

He said, "If economic recovery is delayed, debt repayment deferral measures for vulnerable groups due to the novel coronavirus infection (COVID-19) may lead to deterioration in the soundness of the credit industry," and emphasized, "Since various institutional improvements related to financial consumer protection and the reduction of the legal maximum interest rate are also expected to have a significant impact on management, it is necessary to establish a sustainable management foundation for the industry."

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