Musicow Designated as Innovative Financial Service... Financial Services Commission Selects 13 New Cases

Designation of 'Other Credit Card Company Card Product Recommendation Service' by Six Card Companies

[Asia Economy Reporter Sim Nayoung] Music copyright royalty participation claim investment platform 'Musicow' has been newly designated as an innovative financial service by the Financial Services Commission.

On the 7th, the Financial Services Commission announced at a regular meeting that 13 cases, including Musicow and Kiwoom Securities and Hana Bank's 'music copyright royalty-based revenue securities trading platform,' were newly designated as innovative financial services.

The Securities and Futures Commission (hereinafter SFC) under the Financial Services Commission judged in April that 'Musicow's music copyright royalty participation claim corresponds to investment contract securities under the Capital Markets Act' and deferred sanctions on the condition of establishing investor protection measures.

Since then, Musicow recently signed a business agreement with Kiwoom Securities. They prepared measures to separately deposit investor deposits into Kiwoom Securities' investor real-name accounts and then applied to the Financial Services Commission for designation as an innovative financial service.

The Financial Services Commission stated, "Musicow must complete the business structure change by October, reflecting all the conditions presented by the SFC when receiving the sanction deferral and the contents of the innovative financial service designation."

The Financial Supervisory Service will verify this and report to the SFC. After confirming the completion of Musicow's business structure reorganization by the Financial Supervisory Service and stabilizing the IT systems between the operator and financial institutions, Musicow's actual service launch is planned.

Meanwhile, the Financial Services Commission also newly designated the 'other credit card company card product recommendation service' of six card companies including Shinhan, KB Kookmin, Lotte, BC, Woori, and Hana as an innovative financial service.

Until now, MyData business operators who are card companies under the Specialized Credit Finance Business Act could only compare and recommend their own products. However, an exception was granted to allow comparison and recommendation of other companies' card products only within the MyData service app (application). The related service is planned to be launched within four months.

Overseas stock fractional trading services of IBK Investment & Securities, Ebest Investment & Securities, SK Securities, Hyundai Motor Securities, and Sangsangin Securities were also designated as innovative financial services on the same day, enabling business to start from the first half of next year.

Naver Financial and Hana Bank's 'PayMoney Account Service' was also newly designated as an innovative financial service and will be launched within two months. This service stores prepaid recharge funds of Naver Pay users in a Hana Bank partnership account and automatically prepaid recharges from the partnership account each time payment is made through Naver Pay.

The Financial Services Commission extended the designation period of the existing innovative financial service 'small overseas remittance service by card companies for non-residents and foreigners' by two more years, allowing it until September 22, 2024.

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