Innovative Financial Companies Can Request Regulatory Improvements from the Government

Special Extension Up to 1 Year and 6 Months... 'Financial Innovation Act Amendment' Passes Cabinet Meeting

[Asia Economy Reporter Lee Kwang-ho] On the 13th, the amendment to the Special Act on Financial Innovation Support (Financial Innovation Act), which allows innovative financial service providers to request regulatory improvements from the government to alleviate concerns about business suspension, passed the Cabinet meeting.

According to the Financial Services Commission, the amendment includes provisions that allow innovative financial service providers to request regulatory improvements, and if the relevant ministry decides to revise the laws and regulations, the special period can be extended up to 1 year and 6 months.

Innovative financial service providers can request regulatory improvements to the Financial Services Commission and the heads of related administrative agencies at least 3 months before the expiration of the special period.

The amendment specifies the procedure that regulatory authorities such as the Financial Services Commission must review the necessity of regulatory improvements through the Innovative Finance Committee, and if necessary, begin revisions. If the decision to revise laws and regulations is made, the special period for innovative financial services is considered not expired until the revision is completed and enforced, allowing providers to continue their services.

A Financial Services Commission official said, "With the amendment, innovative financial service providers can offer their services stably without anxiety about the expiration of the period." The amended Financial Innovation Act will be promulgated on the 20th and will take effect on July 21, three months later.

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