Seungbeom Ko: "Thorough Supervision of Big Tech's Data Monopoly Through Regulation of Business Practices" (Comprehensive)

Financial Services Commission Holds Meeting to Promote Innovation in Financial Platforms

On the morning of the 15th, Seung-beom Ko, Chairman of the Financial Services Commission, attended a meeting held at Front1 in Mapo-gu, Seoul, aimed at promoting innovation in financial platforms. He discussed key issues such as financial innovation through AI utilization with representatives of financial platform companies, heads of digital innovation departments of financial institutions, and other related stakeholders, and listened to on-site suggestions and difficulties.

[Asia Economy Reporter Jin-ho Kim] Financial authorities have expressed their intention to support the activation of large platforms such as big tech companies while thoroughly supervising business activities through regulatory measures to prevent side effects like data monopolies.

On the 15th, Ko Seung-beom, Chairman of the Financial Services Commission, attended the 'Meeting for the Activation of Financial Platform Innovation' held at Front1 in Mapo, Seoul, and stated, "As the trend in the financial industry recently emphasizes comprehensive services through platforms, concerns are also growing regarding the application of identical functions and regulations during the process of platform integration, as well as consumer protection and data monopolies."

He continued, "Regarding the entry of big tech companies into the financial sector, it must be done while adhering to the principles of identical functions, identical regulations, and financial consumer protection," and emphasized, "The direction for digital transformation in finance should focus on creating an environment where competition and growth occur in a broader and higher playing field rather than restricting one side."

After the meeting, Chairman Ko told reporters, "We are comprehensively reviewing how to distinguish between big tech and small fintech companies and how to view the relationship between big tech and financial firms," adding, "Since opinions differ among financial sectors, we will conduct a comprehensive review."

Regarding the principle of identical functions and identical regulations, he elaborated, "The intention is not to impose restrictions under this principle but to develop under the same principle." On the possibility of regulating big tech’s financial product fees, he said, "The Financial Consumer Protection Act applies, and the Fair Trade Commission is also examining this area," adding, "We aim to harmonize these aspects, and specifics will need to be reviewed on a case-by-case basis."

Chairman Ko also announced at the meeting that a 'Digital Innovation Finance Development Strategy' will be established, focusing on five core areas: data, new technologies, platforms, digital security, and digital assets.

To build a data innovation infrastructure, he stated that the MyData service will be fully implemented to provide hyper-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 emphasized that regulations and reasonable consumer protection principles will also be refined to meet the demand for providing and consuming financial services in virtual spaces using the metaverse.

Furthermore, to support the digital 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, he stated that 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 pledged to prioritize user protection and participate in institutionalization discussions.

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