Seungbeom Go "Big Tech Companies Must Adhere to Consumer Protection Principles with Equal Function and Regulation"

Meeting Held to Promote Innovation Activation in Financial Platforms

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Ko Seung-beom, Chairman of the Financial Services Commission, emphasized on the 15th that the entry of big tech companies into the financial industry "must be carried out under the principles of same function, same regulation, and financial consumer protection."

Chairman Ko made these remarks at the 'Meeting for Activating Financial Platform Innovation' held at Front1 in Mapo, Seoul. The meeting was attended by big tech companies such as Naver Financial and Kakao Pay, as well as traditional financial institutions including KB Financial Group, Shinhan Bank, and Hyundai Card.

Chairman Ko pointed out, "The recent trend in the financial industry emphasizes comprehensive services through platforms. However, concerns are also growing regarding the application of same function and same regulation during the process of platform integration, as well as consumer protection and data monopolization."

He added, "The direction for digital transformation in finance should focus on creating an environment where competition and growth can occur in a broader and higher-level playing field, rather than restricting one side."

To this end, Chairman Ko stated that he plans to establish a 'Digital Innovative Finance Development Strategy' centered on five core areas: data, new technologies, platforms, digital security, and digital assets.

First, to build data innovation infrastructure, the MyData service will be fully implemented to provide highly personalized customized information, and the scope of participating institutions and information provision will be gradually expanded.

To enhance the utilization of new technologies such as artificial intelligence (AI), detailed guidelines for the 'AI Guideline' will be prepared to actively support the use of related technologies. He also emphasized that regulations and reasonable consumer protection principles will be revised to meet the demand for providing and consuming financial services in virtual spaces using the metaverse.

Furthermore, to support the digital financial transformation of existing financial companies, reasonable alternatives will be sought regarding issues such as information sharing, outsourcing of tasks, ancillary and concurrent businesses, and partnerships with fintech companies.

In addition, regulations will be improved to enable the use of blockchain technology in finance, enhancing reliability, reducing procedures and costs, and creating conditions to provide innovative financial services. In particular, regarding virtual assets, which have recently expanded in the market, he stated that user protection will be prioritized and that he will participate in institutionalization discussions.

Meanwhile, expert presentations were also made at the meeting by Jung Joong-ho, Director of Hana Financial Management Research Institute, and Professor Jung Soon-seop of Seoul National University.

Director Jung presented on 'Domestic and International Digital Finance Trends and Implications.' He stated, "As digital technological capabilities emerge as core competencies, the structure of the financial industry is changing into an era of financial platforms," and suggested that "it is necessary to advance the digital finance foundation and conduct institutional reviews to prevent side effects."

Professor Jung emphasized in his presentation on 'Exploring Directions for Activating Financial Platform Innovation' that "it is urgent to prepare a digital innovative finance development strategy and practical tasks to lead the digital transformation era."

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