Indefinite Jeongeumbeop... Can a Consensus Be Reached?

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] As discussions on the Electronic Financial Transactions Act (Jeongeumbeop) in the National Assembly are indefinitely delayed, the industry, which had been seeking new business opportunities, is facing deep concerns. However, since the positions of the Financial Services Commission, the Bank of Korea, and financial labor unions remain at an impasse, there are worries that the National Assembly discussions will be prolonged further.

According to sources from the financial and political sectors on the 3rd, the review of the Jeongeumbeop, which was scheduled to be addressed on the 22nd, has been postponed to the next session. The National Assembly’s Political Affairs Committee has stated that discussions will begin in the next extraordinary session, but the exact timing has not yet been decided.

This amendment includes the introduction of new licenses such as Payment Instruction Transmission Business (My Payment) and Comprehensive Payment Settlement Operators, the restructuring of the electronic financial business regulatory system including rationalization of entry regulations, and the allowance of postpaid payment services (small amount) for payment settlement operators, all related to the maintenance and promotion of the digital financial industry.

The delay in the amendment of the Jeongeumbeop is largely due to significant differences in opinion between the Financial Services Commission and the Bank of Korea. The two have engaged in ongoing off-the-record disputes. The Bank of Korea claims that the only entity conducting electronic payment transaction clearing is the Korea Financial Telecommunications and Clearings Institute, where the Bank of Korea serves as the chairman of the general meeting. It also opposes the Financial Services Commission’s intrusion into payment and settlement operations, which are roles of the central bank. On the other hand, the Financial Services Commission insists that external clearing must be included in the Jeongeumbeop for fintech company transactions to ensure transparency in fund transactions.

With the bill’s passage indefinitely delayed, the related industry is under urgent pressure. The possibility of further delays in the bill’s passage is increasing anxiety. By this month, by-elections for the Seoul and Busan mayoral offices are scheduled, and depending on the election results, turmoil in the defeated party among the ruling party and the main opposition party is inevitable. In May, both parties are scheduled to hold party conventions to elect new leadership, and in June, a government audit awaits.

Recently, even the Blue House has stepped in to mediate, but given the significant differences between the two institutions regarding the bill, it seems unlikely that the bill will be passed soon. Therefore, considerable difficulties are expected until the Jeongeumbeop amendment passes the National Assembly.

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