Eun Sung-soo: "Is the Electronic Financial Transaction Act 'Big Brother'? Misunderstanding... Discussions Focused on Saving Ssangyong Motor" (Comprehensive)

BOK "Opposes Use as Big Brother Tool"... Eun Seong-su "Financial Settlement Institute Currently Overseen by BOK"
Discussion with Lee Dong-geol, KDB Chairman, on Saving Ssangyong Motor

[Image source=Yonhap News]

[Asia Economy reporters Wondara and Song Seungseop] Eun Sungsoo, Chairman of the Financial Services Commission, dismissed the Bank of Korea's criticism of the amendment to the Electronic Financial Transactions Act (EFTA) as "Big Brother" as a "misunderstanding." Regarding Ssangyong Motor, he revealed that he discussed with Lee Dong-geol, President of the Korea Development Bank, about "saving Ssangyong Motor."

Bank of Korea: "Opposed to being used as a Big Brother tool"... Eun Sungsoo: "Excessive exaggeration"

On the morning of the 19th, Chairman Eun met with reporters at the Bankers Association Hall in Jung-gu, Seoul, and when asked about the Bank of Korea's criticism, he said, "Calling the amendment to the EFTA 'Big Brother' is an excessive exaggeration," adding, "Since the Bank of Korea currently oversees the Korea Financial Telecommunications and Clearings Institute (KFTC), calling it Big Brother is like criticizing oneself." Regarding the concentration of big tech transaction information at the KFTC, Chairman Eun added, "It is to return money to the owner when a financial accident occurs, similar to how phone call records remain with telecom companies, and calling this Big Brother is excessive."

The Bank of Korea is concerned 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 points out that, unlike the case of external clearing by China's Wanglian cited by the FSC, internal transactions are not scrutinized.

The amendment to the EFTA, proposed by Democratic Party lawmaker Yoon Kwan-seok, designates big tech companies as "comprehensive payment service providers" and introduces "electronic payment transaction clearing" to ensure transparency in big tech companies' fund transactions. As a result, big tech companies like Naver and Kakao must go through the external clearing institution, the KFTC, when conducting financial transactions with users.

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." The term Big Brother refers to the power that monitors individuals and controls society, as depicted in George Orwell's novel '1984.'

Ssangyong Motor, "Discussed in a direction to save"

[Image source=Yonhap News]

Regarding Ssangyong Motor's preemptive rehabilitation plan (P-Plan), Chairman Eun stated that he discussed with President Lee in broad terms about saving Ssangyong Motor.

He said, referring to the Ssangyong Motor crisis discussed during the National Assembly's Political Affairs Committee briefing on the 17th, "I discussed it with President Lee," and added, "The position announced in the National Assembly remains valid." Chairman Eun explained, "There are employment issues, and if it can be saved, it is better to save it," but noted that the judgment should be made by the Minister of Trade, Industry and Energy. After the briefing at the National Assembly, Chairman Eun said he reached a consensus with President Lee on this statement, and that President Lee, head of the main creditor Korea Development Bank, also broadly agreed.

Regarding the contents of the closed-door meeting with heads of policy banks that day, he said, "First, I expressed gratitude that not only policy banks but also several other banks helped stabilize the securities and bond markets smoothly last year," adding, "Although it is shameless, I had to ask once more, and the heads of policy institutions fully understood and agreed to actively cooperate."

He continued, "However, the heads of institutions expressed concerns about the parts where profitability declined during management evaluations, and I said that when evaluating management, they should be properly assessed for expanding funds rather than profitability targets. I also mentioned that, as promised, active indemnification should be provided."

Regarding the upcoming Financial Supervisory Service's disciplinary hearing for Shinhan and Woori Banks scheduled for next week, he refrained from commenting, saying, "It is not appropriate to dictate how the higher court trial should be before the judgment. It is an overreach."

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