FSC Vice Chairman Visits Vietnam to Strengthen Cooperation on Digital FinanceSep 08, 2023

Vice Chairman Kim So-young of the Financial Services Commission visited Vietnam on September 6-7 on a second leg of his weeklong trip to Southeast Asia intended to promote export of Korean financial services infrastructure and boost cooperation with the region. Vietnam is one of the countries hosting a large number of Korean financial companies with significant interest in fintech and digital finance. As of the end of March 2023, there were some 58 local branches operated by 44 Korean financial companies.


Meeting with Korean financial companies operating in Vietnam


On September 6, Vice Chairman Kim So-young held a meeting with a group of Korean financial companies doing business in Vietnam and held talks on Vietnam’s financial industry and market trends, their business operations and challenging aspects. Total 15 companies attended the meeting in which they raised issues such as regulatory hurdles related to delay in licensing, lack of clarity in regulatory guidelines, etc. In this regard, Vice Chairman Kim said that the Korean government plans to boost support for financial companies’ business expansion and operations overseas and make efforts to strengthen cooperation with the local regulatory authority to help alleviate their operational difficulties.


Fintech demo day in Ho Chi Minh City


The FSC and the Fintech Center Korea hosted a fintech demo day in Ho Chi Minh City on September 6, which was the first fintech demonstration event held overseas since the easing of the pandemic. Total 11 fintech companies from both countries showcased innovative fintech services to an audience of about 100 participants. Vice Chairman Kim So-young delivered congratulatory remarks at the event, highlighting the importance of Vietnam as a crucial export destination and production base for many Korean companies and expressing his expectations for building a mutually beneficial and cooperative relationship and network between the fintech firms and financial institutions of both countries.


High-level meeting with Deputy Governor of SBV


On September 7, Vice Chairman Kim held a high-level meeting with Deputy Governor Pham Tiem Dung of the State Bank of Vietnam. At the meeting, Vice Chairman Kim promised to enhance cooperation on a financial expert training program and to favorably review the prospect of sending FSC’s anti-money laundering (AML) experts to Vietnam on a secondment program. While asking for a prompt licensing process for Korean banks, which had also been discussed at the bilateral summit meeting held in June this year, Vice Chairman Kim also urged stronger cooperation from Vietnam’s financial authority to alleviate regulatory challenges concerning the issue of delays in overseas transfers of dividends by Korean companies.


MOU signing on digital finance


Vice Chairman Kim So-young of the Financial Services Commission and Deputy Governor Pham Tiem Dung of the State Bank of Vietnam signed a memorandum of understanding (MOU) to bolster cooperation on digital finance. The MOU is an upgraded form of a previous MOU signed in 2018. The upgraded content of the agreement deals with strengthening cooperation in fintech, infrastructure support and personnel exchange. At the signing event, Vice Chairman Kim said that since it is the most progressive and comprehensive MOU signed on financial innovation by the FSC, we will actively work to share Korea’s experience and know-hows on digital innovation to help make contributions to Vietnam’s financial industry.


Korea-Vietnam MyData workshop


Vice Chairman Kim So-young attended the Korea-Vietnam MyData workshop co-hosted by Korea Credit Information Services and Vietnam Credit Information Center. The workshop was prepared to introduce Korea’s outstanding MyData service infrastructure to Vietnam and some 120 participants attended the event including SBV officials. Vice Chairman Kim delivered congratulatory remarks at the meeting and spoke about the importance of data as a key ingredient in the financial industry. Vice Chairman Kim stressed that Korea was first in the world to embrace an API-based MyData system and that Korea’s MyData service infrastructure has established a balance between data utilization and data protection. Through closer cooperation on MyData, Vice Chairman Kim said that he expects that Korea will be able to make significant contributions to promote innovation in Vietnam’s financial industry.


* Please refer to the attached file for details.