Financial Services Commission Chairman: "Separation of Banking and Industry, Priority Review on Improving Business Scope and Subsidiary Investment Restrictions"

[Image source=Yonhap News]

[Asia Economy Reporter Song Hwajeong] Kim Juhyun, Chairman of the Financial Services Commission, stated that he will prioritize reviewing measures to improve the scope of business and restrictions on subsidiary investments to activate IT and platform-related operations and new technology investments in relation to the separation of banking and commerce regulations.

Chairman Kim made these remarks during his opening speech at the launch ceremony of the Financial Regulation Innovation Meeting held at the Bankers Club of the Korea Federation of Banks in Jung-gu, Seoul on the 19th.

Chairman Kim said, "The financial industry must develop as a dynamic pillar of the economy as an independent industry, and financial regulations should not hold it back," emphasizing, "The goal of financial regulation innovation is to create a new stage where players leading the global financial market, like BTS in the music industry, can emerge in the financial sector."

To this end, regardless of whether offline or online, support will be provided to help financial companies grow into global financial firms, and conditions will be created so that both financial companies and big tech can actively promote digital innovation. The policy is to allow domestic financial companies to do what global financial companies can basically do.

Chairman Kim stated, "Above all in regulatory innovation, there have been many demands from the field to improve regulations that hinder the digitalization of financial companies," adding, "A representative example is the separation of banking and commerce regulation. While maintaining the basic framework for financial stability, we will first review measures to improve the scope of business and subsidiary investment restrictions to activate IT and platform-related operations and new technology investments." He further added, "It is also necessary to flexibly improve outsourcing regulations so that cooperation with tech companies can be strengthened through the use of big data analysis technology and linkage with non-financial information."

Regarding the exclusive operation regulation, he explained, "The existing regulatory framework cannot satisfy consumers' needs who want to conveniently use various financial services through platforms," and added, "We plan to pilot and verify financial product brokerage services through online platforms and review measures to support financial companies to develop into financial platforms."

There is also a plan to accelerate the establishment of infrastructure for digital financial innovation. Chairman Kim said, "We will upgrade currently operating systems such as MyData, Open Banking, and regulatory sandbox to the next level, and establish a regulatory framework to guide the responsible growth of digital new industries such as virtual assets and fractional investment."

Chairman Kim also mentioned the need for institutional improvements to organize capital market infrastructure and invigorate investment. He emphasized, "We will improve the trust system to enable comprehensive asset management and promote competition and autonomy through the introduction of Alternative Trading Systems (ATS)," adding, "We will organize market systems to meet global standards and develop the appearance of an advanced capital market."

Improving supervision, sanctions, and inspection administration is also an important task to enhance the tangible effects of regulatory innovation. Chairman Kim said, "The Financial Supervisory Service, which interacts with financial companies on the ground, will take the lead in preparing improvement measures."

Chairman Kim emphasized, "We will not grant authority to any fixed ideas dominating the financial industry," and added, "We will fundamentally question and reshape the framework of financial regulations."

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