[2024 National Audit] Lee Bok-hyun on Naver's 'Pseudo Securities Firm' Criticism: "Authorization Required to Operate Securities Business"

National Assembly Political Affairs Committee Financial Supervisory Service Audit

Lee Bok-hyun, Governor of the Financial Supervisory Service, is responding to a lawmaker's question during the National Assembly's Political Affairs Committee's audit of the Financial Supervisory Service held on the 17th. Photo by Kim Hyun-min

Lee Bok-hyun, Governor of the Financial Supervisory Service, stated on the 17th in response to the National Assembly's criticism that Naver is indirectly functioning as a 'quasi-securities company' without a securities business license, "If there is an intention to actually perform functions similar to a securities company, I believe the proper way is to formally obtain the relevant license."

Governor Lee made this remark during the afternoon session of the National Assembly's Political Affairs Committee audit, answering a question from Kang Min-guk, a member of the People Power Party, regarding Naver Financial, Naver's financial specialized subsidiary.

Assemblyman Kang pointed out, "Various unfair trades occur in Naver Band or discussion rooms and other community services, and amid these concerns, there is strong suspicion about whether Naver is making active efforts to purify these platforms and protect investors."

He added, "Unlike Kakao or Toss, which have obtained licenses for banking, securities, and insurance businesses and provide related services directly under regulatory supervision, there is strong suspicion that Naver is attempting to provide financial services indirectly without a securities business license, thereby circumventing financial regulations to operate financial businesses."

Regarding whether any sanctions were imposed on Naver in relation to the provision of new securities account opening services during the partnership between Naver and Mirae Asset Securities in June, Governor Lee said, "We did raise some issues."

In fact, before the service launch, the Financial Supervisory Service requested the deletion of the account opening service, considering it as 'intermediation' during prior consultations with the industry.

Governor Lee also responded to Assemblyman Kang's questions about allegations of 'abuse of market dominant position' by saying, "We will carefully monitor and thoroughly review the issues related to market dominant position and other problems mentioned in connection with outsourcing and other matters."

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