"Painful Process of 'Daehwandaechul Platform'... Financial Authorities Re-collect Opinions Across Sectors"

Eun Sung-soo, Chairman of the Financial Services Commission (second from the right), is holding a meeting with the chairmen of the five major financial holding companies?KB, Shinhan, Hana, Woori, and NH Nonghyup?to review support for the public and job creation in the financial sector.

[Asia Economy Reporter Kwangho Lee] As conflicts deepen between financial sectors over the refinancing loan (loan switching) platform, financial authorities are set to gather opinions once again.

According to financial authorities on the 16th, the Financial Services Commission plans to hold separate meetings this month with the banking sector, big tech (large information technology companies) and fintech industries, and the secondary financial sector.

At these meetings, the Financial Services Commission is expected to listen to the industry's concerns and demands regarding platform development. The banking sector is anticipated to present specific and advanced opinions beyond merely expressing concerns about potential dependency on big tech and fintech companies.

On the 10th, the chairpersons of the five major financial holding companies?KB, Shinhan, Hana, Woori, and NH Nonghyup?met with Financial Services Commission Chairman Eun Sung-soo and expressed concerns about the refinancing loan platform being promoted by the financial authorities, proposing to limit the service scope to mid-interest rate loans.

The following day, during a meeting with heads of financial sector associations such as the Korea Federation of Banks, the Credit Finance Association, the Life Insurance Association, the General Insurance Association, and the Korea Federation of Savings Banks, this issue was reportedly raised as well.

Subsequently, Chairman Eun is known to have shared the proposals from financial holding company chairpersons and association heads and instructed for inter-sector consultations.

The Financial Services Commission’s renewed emphasis on communication is interpreted as an effort to reconcile conflicts between sectors and enhance the completeness of the platform development.

The refinancing loan platform promoted by the Financial Services Commission is a system that links the loan interest rate comparison services of existing platform companies in the market with the refinancing loan infrastructure of the Korea Financial Telecommunications & Clearings Institute. Consumers will be able to conveniently switch loans by comparing interest rates non-face-to-face and through a one-stop process without visiting bank branches as they do now.

The working-level consultative body for this has already been formed, and a public announcement will be made to select 2 to 3 fintech companies to participate in the platform and actually undertake the business.

However, banks, concerned about potential dependency on fintech companies, have agreed to create an independent public refinancing loan platform centered around the Korea Federation of Banks. The banks plan to complete consultations on construction directions including fees and costs within this month, and from September, proceed with contract signing among affiliated financial companies, development and linkage of IT systems, aiming to complete all procedures by early December.

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