Allowing MyPayment for Card Companies... Go Seung-beom: "It Must Become a Life-Oriented Financial Platform"

Financial Services Commission Chairman Ko Seung-beom Holds First Meeting with Credit Card Industry Since Inauguration

[Asia Economy Reporter Park Sun-mi] The card industry will be allowed to engage in payment instruction transmission business (MyPayment), and ancillary and concurrent businesses will be further expanded. The approval for capital companies to enter the insurance agency business is also under consideration.

On the 17th, Ko Seung-beom, Chairman of the Financial Services Commission, stated at the first meeting with the credit finance industry that support will be provided for card companies to become comprehensive payment service providers and lifestyle-oriented financial platforms, and regulations will be rationally improved to leverage the characteristics of the credit finance industry.

First, various supports will accompany the development of card companies into comprehensive payment service providers. MyPayment, introduced with the amendment of the Electronic Financial Transactions Act, will be allowed for card companies. MyPayment refers to a business where the operator can instruct payments and remittances by accessing consumer accounts without holding the consumer's funds. If MyPayment is permitted for card companies, transfer services such as payments or remittances will be possible using only consumer account information without separately holding payment funds.

Additionally, the scope of data utilization will be expanded, and ancillary and concurrent businesses will be further extended by adding personal credit information management business (MyData), credit evaluation for individual business owners, big data analysis, processing, sales, and consulting services, enabling the exploration of new business areas through accumulated data.

Chairman Ko also promised active support for card and capital companies to become lifestyle-oriented financial platforms. He said, "We will support the creation of personalized financial demand using MyPayment and MyData," and added, "We will explore ways to expand platform business areas such as investment and entry into e-commerce and live commerce. Also, on the premise of establishing safeguards against concerns like tying sales, we will consider allowing capital companies participating in the MyData business to enter the insurance agency business."

Regulatory improvements will also be made to leverage the characteristics of the credit finance industry. Measures such as easing loan limits will be taken to expand investments by new technology business finance companies in startup technology firms, and necessary regulations will be supplemented from the perspective of consumer protection as investments by individual investors in new technology businesses have recently increased.

Furthermore, institutional support necessary for capital companies to expand into the real estate leasing sector related to the 4th industrial revolution and environmental fields, providing a foundation for industrial development, will be reviewed. To strengthen support for non-face-to-face sales by card companies and others, a paperless sales environment will also be established.

Chairman Ko stated, "Since the credit finance industry is closely connected to the daily lives of the public, innovations in this industry will be directly felt by the people, so further innovation efforts by credit finance companies are required," and added, "We plan to hold communication opportunities with market participants whenever possible to concretize plans for the development of the financial industry."

Meanwhile, CEOs of the credit finance industry and related officials attending the meeting on the same day proposed to the financial authorities the creation of a fair competition environment with big tech companies, expansion of the scope of concurrent and ancillary businesses, and support for expanding investments in new businesses.

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