Financial Supervisory Service Chief Meets Big Tech... Emphasizes 'Responsible' Financial Innovation

Lee Bok-hyun, Financial Supervisory Service Chief, Holds First Meeting with Big Tech and Fintech Industries
Listens to Opinions Ahead of Introducing Simple Payment Fee Disclosure System
Promises Various Supports for Growth... Emphasizes Responsibility Amid Financial Innovation

[Asia Economy Reporter Minwoo Lee] Since his inauguration, Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), who had met with all heads of the financial industry, met representatives of the Big Tech and Fintech industries for the first time. While promising support for their growth, he also emphasized 'responsible' financial innovation.

According to the financial sector on the 30th, Governor Lee held a meeting with Big Tech and Fintech industry representatives at Mapo Front One in Mapo-gu, Seoul. This was the first time since his inauguration that he held a meeting with the Fintech industry. Attendees included Park Sang-jin, CEO of Naver Financial, Shin Won-geun, CEO of Kakao Pay, Lee Seung-geon, CEO of Viva Republica (Toss), and Lee Geun-ju, Chairman of the Korea Fintech Industry Association.

In his opening remarks, Governor Lee stated, "Big Tech and Fintech have expanded the overall market size of the financial industry, driving growth and competition in the financial market, and have improved financial accessibility for groups that traditional financial companies have not been able to include, which is highly commendable." He pledged support for regulatory sandboxes, attracting Fintech investments and overseas expansion, and the Fintech on-site advisory group.

While recognizing and supporting financial innovation by Big Tech and Fintech, he also emphasized 'responsibility.' He urged, "Please continuously verify that the algorithms, which are key to financial product recommendations, prioritize consumers' interests over platform profits," and added, "I hope financial platforms operate fairly and transparently so that various stakeholders can coexist."

This is interpreted as signaling the intention to promote the 'Simple Payment Fee Disclosure System,' a national agenda of the Yoon Seok-yeol administration. The system aims to improve the fee regulation differences between the card industry and the simple payment industry based on the principle of 'same function, same regulation,' and to reduce the burden of simple payment fees on small business owners. The FSS has already formed a 'Payment Fee Disclosure Task Force (TF)' involving Naver Financial, Kakao Pay, and Viva Republica.

The industry is concerned that this could be excessive intervention. The FSS is likely to require not only Big Tech companies like Naver Pay, Kakao Pay, and Toss but also Fintech firms, payment gateway (PG) companies, and online comprehensive shopping malls to disclose their fee cost structures. Delivery services like Baedal Minjok and SSG.com also attended a related meeting held by the FSS in May. Fintech companies argue that applying the same regulations based solely on function, despite different environments from card companies, is unreasonable. They also believe that uniform simple comparative disclosures are inappropriate given the differing cost structures.

The card industry also worries about the 'same regulation' approach. They want regulatory relaxation similar to that of Fintech, but regulating Fintech simple payment fees to disclose detailed cost information like the card industry's eligible cost reassessment would result in a 'leveling down,' which could hinder the potential of the entire industry.

Governor Lee said, "I am well aware of the industry's concerns, and fees should be determined autonomously in the market; the supervisory authority has no intention to intervene directly," adding, "We will reasonably prepare by fully collecting stakeholders' opinions."

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