Eun Sung-soo: "The Bank of Korea's 'Big Brother' is an Overstatement... It Means Self-Criticism" (Update)

"Financial Settlement Service Currently Overseen by Bank of Korea... Only Meant to Refund Money in Case of Financial Accidents"

[Image source=Yonhap News]

[Asia Economy Reporters Wondara and Seungseop Song] Eun Seong-su, Chairman of the Financial Services Commission, rebutted the Bank of Korea's criticism of the Electronic Financial Transactions Act (EFT Act) amendment as "Big Brother" by calling it a "misunderstanding."

On the morning of the 19th, at the Bankers Association Hall in Jung-gu, Seoul, Chairman Eun responded to questions from reporters about the Bank of Korea's criticism, saying, "It is an exaggeration to call the Bank of Korea's criticism of the EFT Act amendment 'Big Brother.' Since the Bank of Korea currently oversees the Korea Financial Telecommunications and Clearings Institute (KFTC), calling it Big Brother is like criticizing itself," he said strongly.

Regarding concerns about big tech transaction information being concentrated in the KFTC, Chairman Eun added, "When a financial accident occurs, it is to return money to the owner, similar to how phone call records remain with telecom companies. Calling this Big Brother is excessive. Big Brother is a misunderstanding," he added.

Bank of Korea criticizes Financial Services Commission for unrestricted access to customer electronic payment transactions... issues a statement

Earlier, the amendment to the EFT Act, led by Yoon Kwan-seok of the Democratic Party of Korea, designates big tech companies as "comprehensive payment service providers" to legalize them and introduces "electronic payment transaction clearing" to ensure transparency in big tech companies' fund transactions. If the amendment passes, big tech companies like Naver and Kakao must go through an external clearing institution, the Korea Financial Telecommunications and Clearings Institute (KFTC), when conducting financial transactions with users.

The Bank of Korea raises concerns that the Financial Services Commission can access all electronic payment transaction information that big tech companies are required to provide to the KFTC without significant restrictions. The Financial Services Commission cites China’s Wanglian as an example of external clearing by big tech, claiming that internal transactions are not scrutinized.

On the 17th, the Bank of Korea issued a statement saying, "The Financial Services Commission's intention to collect big tech transaction information under the pretext of user protection and transaction transparency is no different from installing CCTV in every home to prevent domestic violence and watching over them," adding, "The Chinese government does not scrutinize internal transactions of big tech companies, and no government in the world has a precedent for this."

It also emphasized, "As the central bank ultimately responsible for the payment and settlement system, the Bank of Korea opposes the payment and settlement system being used as a Big Brother tool." Big Brother is a term from George Orwell's novel '1984,' referring to a power that monitors individuals and controls society.

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