Conflict over 'Daehwan Loan Platform'... Financial Services Commission Reconsiders Industry Opinions

[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. Regardless of the target launch date in October, they plan to keep various alternatives open and listen to sufficient feedback.

According to the financial sector on the 23rd, the Financial Services Commission (FSC) will hold a meeting with the banking sector regarding the refinancing loan platform. This is the third meeting with the banking sector following last month.

The meeting is expected to include discussions on the "mid-interest rate loans" proposed by the banking sector. On the 10th, the chairpersons of the five major financial holding companies?KB, Shinhan, Hana, Woori, and NH Nonghyup?met with FSC Chairman Eun Sung-soo and expressed concerns about the loan switching platform being promoted by the financial authorities, suggesting limiting the service scope to mid-interest rate loans.

The meeting will likely also cover discussions on a joint platform for banks. To alleviate concerns about dependence on big tech companies, the banking sector has expressed intentions to create its own loan comparison platform connected to the Financial Settlement Service’s loan transfer infrastructure, led by the Korea Federation of Banks. However, no concrete roadmap has been released yet. The Korea Federation of Banks has formed an internal task force (TF) team consisting of legal and IT practitioners to begin platform development work.

Following the meeting with the banking sector, the FSC will hold a meeting with the fintech industry on the 24th.

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

The loan switching platform promoted by the FSC 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 Financial Settlement Service. Consumers will be able to conveniently switch loans non-face-to-face and in a one-stop manner by comparing interest rates without having to visit bank branches as they do now.

An FSC official stated, "We will not be bound by the schedule and will listen to the industry’s opinions thoroughly to find a reasonable direction."

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