Press Releases - Financial Services Commission

Press Releases

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Dec 29, 2021

FSC to Bolster Inclusive Finance Measures and Promote Stronger Support for Credit Recovery

FSC Chairman Koh Seungbeom attended a memorandum of understanding signing event between major credit guarantee institutions on December 29 and delivered a speech emphasizing the importance of providing stronger credit recovery support for small merchants and other vulnerable debtors. The Credit Counseling Recovery Service (CCRS) and five other relevant institutions including Korea Credit Guarantee and Korea Housing Finance Corporation signed an MOU pledging to improve standards for debt adjustment and strengthen support for credit recovery on guaranteed loans. The following is a summary of Chairman Kohs remarks. Chairmans Remarks (Inclusive Finance Measures) The Korean economy has made a quick recovery amid the pandemic even though there are still uncertainties related to the spread of the new variant and asset price volatility. As the economic fallout of the pandemic weighs heavily on the financially vulnerable groups, the need for inclusive finance measures has become ever more important. For individuals with mid-to-low credit backgrounds, the credit market conditions have not deteriorated extensively. However, rising interest rates and the ongoing pandemic raise concerns about the possibility of a narrower access to finance for vulnerable groups. As such, the authorities plan to implement an array of inclusive finance measures to ensure that access to finance is available for vulnerable groups. First, the government will make available up to KRW10 trillion in microloan products for different groups. Second, the government will ensure that lending to lower income earners and other vulnerable individuals will not be impaired by the governments household debt management measures. Third, the authorities will work to provide low interest rate business relief loans to small merchants and self-employed business owners that have seen their earnings decline due to strict social distancing measures amid the pandemic. Along this line, the authorities will also work to root
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Dec 27, 2021

Authorities to Ensure Seamless Transition from LIBOR and Promote KOFR Market

With the London interbank offered rate (LIBOR) expected to be no longer available in major markets starting with non-USD LIBOR from 2022, the FSC announced that the authorities along with the financial industry have taken appropriate steps to ensure a seamless transition to alternative rates. The transition away from LIBOR-based contracts to alternative rates has been taking place at financial institutions and the authorities have already announced the introduction of the Korea overnight financing repo rate (KOFR)as a new risk-free reference rate (RFR) which began to be published from November 25 this year. Major economies including the US, the UK, Japan and EU have also been taking steps in preparation for the discontinuation of LIBOR by developing and promoting their own RFRs according to the recommendations made by the Financial Stability Board. The FSC and the FSS along with the Korea Federation of Banks have been operating a taskforce in this regard to closely monitor and supervise the transition by financial institutions according to the schedule. The authorities will continue to properly respond to the cessation of LIBOR and shifting trends in global reference rates while working to actively promote the KOFR market. * Please refer to the attached PDF for details.
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Dec 23, 2021

FSC Plans to Adjust Card Processing Fee Rates

The FSC announced a plan to adjust card processing fee rates on December 23 with an aim to ease fee burdens on small merchants and self-employed business owners. The rate adjustments for both credit and debit card processing fees are designed in a way to ensure that businesses with lower earnings will receive larger reductions in fee rates as shown below. Changes in Credit Card Processing Fee Rates* *Rate changes for debit card processing fees are shown in parentheses. a) For businesses with annual sales of up to KRW300 million, the fee rate will be lowered 0.3 (0.25) percentage points from 0.8 (0.5) percent to 0.5 (0.25) percent. b) For businesses with annual sales of more than KRW300 million and up to KRW500 million, the fee rate will be lowered 0.2 (0.15) percentage points from 1.3 (1.0) percent to 1.1 (0.85) percent. c) For businesses with annual sales of more than KRW500 million and up to KRW1 billion, the fee rate will be lowered 0.15 (0.10) percentage points from 1.4 (1.1) percent to 1.25 (1.0) percent. d) For businesses with annual sales of more than KRW1 billion and up to KRW3 billion, the fee rate will be lowered 0.1 (0.05) percentage points from 1.6 (1.3) percent to 1.5 (1.25) percent. Pursuant to the revision of the Specialized Credit Finance Business Act in 2012, the authorities are required to make adjustments to the card processing fee rate every three years based on a reassessment of total eligible expenses. The authorities expect that the fee rate adjustment scheme drawn up for 2022 will help reduce fee burdens of about KRW470 billion on businesses. It is expected that about 60 percent of benefits from the cut will be directed toward businesses with earnings of up to KRW300 million per year. Some 30 percent will be given to those in the KRW300 million to KRW1 billion range with the rest of the benefit going to the businesses in the KRW1 billion to KRW3 billion range. In order to help boost the competitiveness of the card industry, the authorities wi
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Dec 23, 2021

29 Out of 42 Virtual Asset Service Providers Granted Business Registration Approval

The Korea Financial Intelligence Unit (KoFIU) announced the result of business registration review on virtual asset service providers on December 23. Out of 42 VASPs that have filed registrations with the authority, the KoFIU announced that 29 entities (24 crypto exchangesand 5 wallet or depository service providers) have gained approvals with the decision on 5 entities being postponed and 8 others withdrawing their decision to register. The KoFIU has carried out a review on the registrations filed by 29 crypto exchanges and 13 wallet or depository service providers between September 25 and December 23 led by a review committee made up of experts from various professional backgrounds. Over the course of the registration process, the authorities have made available consulting and assistance to VASPs on a continuing basis while closely monitoring illegal business activities by unregistered entities and notifying foreign-based VASPs with operations targeting Korean users about their duty to register. In the registration review process, the authorities have looked closely at whether the businesses are adequately prepared to comply with the anti-money laundering (AML) duties. Those that are subject to reevaluation due to inadequate preparation for AML duties will be given one month to demonstrate a proof of adequate AML preparation. The registered entities are subject to the AML duties specified under the Act on Reporting and Using Specified Financial Transaction Information, including customer due diligence, suspicious transaction report and the travel rule. The KoFIU will work to ensure transaction transparency in the virtual asset market by carrying out site inspection and supervision on VASPs on a regular basis. * Please refer to the attached PDF for details.
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Dec 22, 2021

FSC Unveils Work Plan for 2022

The FSC announced its work plan for 2022 which will be focused on maintaining stability in the financial system, promoting advancement of the financial industry, supporting an overall growth of the economy and boosting financial inclusion. In order to achieve these goals, the FSC plans to (a) preemptively manage financial imbalances and work on an orderly exit and normalization from the pandemic-era policy, (b) seek innovation in the regulatory framework to promote digital transformation in the financial industry, (c) provide support for structural changes taking place in the economy and (d) ensure tailored support for vulnerable groups and enhance consumer protections. Key Achievements in 2017-2021 I. Stability in the Financial System The FSC has worked to maintain stability in the financial system by pursuing a consistent policy on household debt management and preemptively responding to the COVID-19 pandemic. In terms of household debt management, the pace of the household debt growth that has seen acceleration in 2020 has come down to a stable level in the second half of 2021 with improvements also seen in the quality of debt structure. The FSC has established groundwork for stably managing potential debt-related risks in the future. In response to the COVID-19 pandemic, the FSC has made available financial supports through the KRW175 trillion-plus support programs intended to help SMEs and small merchants as well as suppliers in the key industry sectors. II. Broadened Horizon of the Financial Industry The FSC has helped expand the horizon of the financial industry by promoting competition as well as convergence between different sectors. Through regulatory improvements, the FSC has lowered entry barriers for different types of financial companies and fintech firms and promoted innovation and digital transformation in the financial industry by introducing open banking and MyData services as well as an integrated public-sector financial open data platform. III. P
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Dec 21, 2021

Open Banking Net Users Reach 30 Million at Two-year Anniversary

The FSC announced that the number of open banking net users reached 30 million with the number of accounts registered surpassing 100 million as the open banking system fully went into service two years ago in December 2019. In two years, the cumulative volume of transactions via open banking reached more than 8.38 billion with the daily average volume of about 20 million transactions occurring for the total amount of some KRW1 trillion every day. Statistical data so far have shown that the open banking users most frequently used the balance inquiry (68%) service, followed by the wire transfer (21%) and transaction inquiry (6%) services. At the onset, open banking was only available from banks and fintech firms but now the service availability has been expanded to a total of 120 financial institutions and fintechs including financial investment firms, card companies and small and medium-sized fintechs. The two years of operating open banking services contributed to the opening up of the financial market infrastructure that has been known for its exclusiveness traditionally. In the mean time, the authorities have worked to improve the system to boost its expandability, fairness and stability. With open banking, financial consumers have been able to enjoy various types of financial services much more conveniently while financial companies and fintech firms have been able to develop and launch more innovative services through platforms, etc. Building upon these outcomes, the authorities will work in the future to introduce an open finance system beyond open banking through which financial consumers can enjoy more comprehensive and personalized financial platform services tailored to their individual needs. In order to ensure strong security measures, the authorities will introduce a zero trust security requirement to strengthen the system-wide security management, guarantee data resiliency and prepare a quick response system for security-related issues. * Please refer t
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Dec 21, 2021

Authorities to Strengthen Financial Education Programs for Digital Era

The FSC held this years second financial education council meeting chaired by Vice Chairman Doh Kyu-sang on December 21 and discussed ways to improve financial education programs for a digital era. The measures for strengthening the financial education programs for 2022 are aimed at addressing the problem of a digital divide and boosting financial consumers capabilities for and awareness in using financial services via digital channels. The measures are also aimed at providing targeted supports for different age-specific groups for a complete guide on ones life cycle of using financial services. To this end, the authorities will work to diversify the ways in which financial education programs are delivered, for instance, through the metaverse and other digital contents and interactive channels. The authorities will also work to strengthen financial education programs in school curriculum while bolstering the councils organizational capacity by promoting more participation from private sector experts and improving networks with local financial educators in different regions. The authorities will work to ensure effective implementation of specific measures in close coordination with the other relevant ministries and institutions. * Please refer to the attached PDF for details.
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Dec 20, 2021

Financial Development Review Committee Holds Meeting to Discuss 2022 Policy Agenda

The Financial Development Review Committee held a meeting on December 17 to discuss key policy initiatives for 2022 and review current trends and risks in the financial markets. In a keynote address, FSC Chairman Koh Seungbeom said that the governments financial policy for 2022 will be centered on ensuring stability in the financial system, promoting financial development, supporting an overall economic growth and expanding financial inclusion. The following is a summary of Chairman Kohs remarks. Chairmans Remarks Despite overall expectations for a sustained recovery momentum into the next year, there still exist uncertainties regarding domestic economic and financial market conditions. With the global tapering move, market instability may grow. As such, the FSC plans to preemptively tackle financial imbalances to maintain stability in the financial system. To this end, the FSC will work on a steady implementation of the household debt management measures and an orderly exit and normalization from the pandemic-era policy measures while closely examining and managing the vulnerable and the so-called shadow banking sector. In terms of promoting financial development, the FSC will maintain a well-balanced approach between promoting innovation and competition between traditional financial institutions and new players such as big tech and fintech companies and working on consumer protection. In the midst of important structural changes taking place in the economy and industries to achieve carbon net zero goals and make digital transformations, the financial sector should provide active support for businesses attempting to reorganize, searching for new growth areas and making transitions to lower carbon growth models. As the current economic condition demands an ever stronger measure for financial inclusion, the FSC will work to ensure a steady access to financial support for vulnerable groups including credit recovery while seeking improvements to consumer safeguards. Du
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Dec 20, 2021

ESG Information Platform Opens

The FSC and the Korea Exchange launched an integrated environmental, social and governance (ESG) information platform on December 20, providing a convenient one-stop information service on ESG-related information of listed companies for investors and the general public. The ESG information platform provides (a) background information on the significance of ESG management, key regulatory trends and related issues, (b) information about the listed companies ESG activities, ratings and their sustainability reports, (c) statistical information on ESG investment trends and (d) other educational materials. As the ESG information platform offers a convenient one-stop information service for a variety of ESG-related data originating from different sources, companies and institutions, users will be able to access and utilize data tailored to their individual needs. The authorities expect that the ESG information platform will function as an important information hub for ESG-related data and help raise overall awareness on the importance of the ESG movement. The FSC and the KRX will continue to work on making improvements to the platform to help enhance user convenience and expand the types of ESG data made available through the platform. * Please refer to the attached PDF for details.
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Dec 15, 2021

Financial Authorities Offer Online Courses on Supervision of Non-holding Financial Groups

The FSC and the FSS announced the offering of two-day online education courses for the employees of six non-holding financial groups from December 16 to 17. The online live streaming education program was prepared to ensure that the employees of relevant financial institutions have a clear understanding about the rules and requirements under the new law on the supervision of non-holding financial groups which went into effect from June 30 this year.In particular, the online courses will offer them a chance to thoroughly prepare for some of the compliance duties that will take effect from January 2022, including capital adequacy assessment, internal control, risk management, and reporting and disclosure. The program will be offered in two-day sessions on December 16-17 for about 138 employees from 46 financial companies affiliated with the six major non-holding financial groups. The authorities expect that the program will help improve their understanding about specific compliance duties under the new law and enhance their capabilities for risk management. * Please refer to the attached PDF for details.
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Dec 15, 2021

FSC Chairman Discusses Importance of Innovation and Advancement of Financial Services Platforms

FSC Chairman Koh Seungbeom met with officials from platform service providers, financial companies and other relevant institutions on December 15 and held talks on ways to promote digital innovation through an advancement of financial services platform. In his keynote address, Chairman Koh said that the government will draw up strategies to promote digital innovation in the five key areas, such as big data, new technology, platform service, digital security and digital asset. The following is a summary of Chairman Kohs keynote address. Chairmans Remarks (Personalized Financial Services Platform) Recent trends in the financial industry have shown a growing tendency toward the provision of more platform-based financial services. Different types of financial services ranging from payment to advisory to asset management services are linked together in a platform to provide more comprehensive and personalized services in digital environments. The entrance of e-commerce businesses into the financial industry and the merging of traditional financial services with non-financial services through a single app are also significant trends. Against this backdrop, there exist concerns about platform service regulation, consumer protection and data monopoly. Platform-based financial services should also be provided with stability in the financial system, consumer protection and fair competition in mind. Based on these principles, the government will seek measures to promote digital transformation in the financial industry in the following areasbig data, new technology, platform service, digital security and digital asset. (Overview of Digital Innovation Strategies) First, the government will help build the infrastructure necessary for promoting innovation through big data. While working on a seamless operation and gradual expansion of MyData services, the authorities will seek ways to improve SMEs and small merchants access to financial services using big data analytics. Second, t
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Dec 14, 2021

Government Approves Postponement of Consolidated Internal Accounting Control System

The government approved a revision to the Enforcement Decree of the Act on External Audit of Stock Companies during a cabinet meeting held on December 14, postponing the requirement of consolidated internal accounting control system for one year until 2023. The establishment, operation and external audit of consolidated internal accounting management system for listed companies that have KRW2 trillion or more in assets was originally set to take effect from 2022. However, the COVID-19 pandemic situation over the past two years posed challenges for businesses in setting up their consolidated internal accounting management system. Thus, the FSC proposed one year postponement of the requirement in July this yearthrough a revision to the Enforcement Decree of the Act on External Audit of Stock Companies and the government decided to approve the changed implementation schedule as shown in the table below. Listed companies wishing for an early implementation may do so from the initial start date. The authorities expect that the postponement of the consolidated internal accounting management system will help reduce burdens on companies and allow them set up more effective systems. * Please refer to the attached PDF for details.
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Dec 09, 2021

Operation of Key Industry Stabilization Fund to be Extended until December 2022

The FSC announced that financial support for key industries in the amount of KRW10 trillion through the key industry stabilization fund launched in May 2020will be available for one more year until the end of December 2022. Amid a protracted pandemic situation, the oversight committee of the key industry stabilization fund decided to extend the period of operation for one more year beyond its initially scheduled termination date of the end of December 2021. Along the same line, the operating period of the working capital support program for the suppliers and subcontractors in key industries,which is financed by the key industry stabilization fund, will also be extended for six more months until the end of June 2022. Since its launch in May 2020, the key industry stabilization fund has extended KRW798.2 billion in financial support to Asiana Airlines (KRW300 bil.), Jeju Air (KRW182.1 bil.) and about 119 suppliers and subcontractors in key industries (KRW316.1 bil.). The businesses receiving support from the key industry stabilization fund are obligated to retain at least 90 percent of workforce, show efforts to improve business management and avoid issues of potential moral hazard, such as executive pay and share buyback. * Please refer to the attached PDF for details.
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Dec 09, 2021

FSC Chairman Holds Talks with Fintech Industry and Pledges Support for Financial Innovation

FSC Chairman Koh Seungbeom met with officials from the fintech industry and held talks on ways to further promote the growth of fintechs and financial innovation. Chairman Koh talked about the need for regulatory improvements aimed at facilitating financial companies investment in fintechs, providing incentives to enable more collaboration between financial companies and fintechs and providing more opportunities to launch financial services (including MyData service) via online and contactless channels. Chairmans Remarks (Fintech Innovation Overview) In the midst of the fourth industrial revolution driven by big data, artificial intelligence and platform-based services, fintech innovation has led major changes in the financial sector and how financial services are being delivered. First, there is the recent re-bundling phenomenon observed in the fintech industry. The unbundling of various financial services into different units was a major trend in the early era of fintech development. However, more recently, re-bundling of various services using a single platform is being observed. Second, there is more cooperation and collaboration between traditional financial institutions and fintechs. Financial institutions seeking digital innovation and fintechs in need of strategic partnership have created increased synergies between them. Third, the growth of fintechs led to the growth of platform-based financial services, which may have contributed to the increased level of consumer convenience but also raise concerns about consumer safeguards and monopolistic behaviors. (Fintech Innovation Strategy) Against this backdrop, the authorities plan to work on the following areas to support financial innovation. First, the authorities will help build regulatory foundations to facilitate innovation rooted in a safe and stable financial environment. To this end, the authorities will seek regulatory improvements to further promote digital innovation while ensuring consumer safeguard
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Dec 08, 2021

Household Loans, November 2021

The outstanding balance of loans to households in all financial sectors increased KRW5.9 trillion at the end of November 2021 (up 7.7% y-o-y).The balance of household loans rose KRW2.9 trillion each in the banking and non-banking sectors, showing an overall decline from the previous month. All financial sectors (y-o-y): +10.0% (Jul) +9.5% (Aug) +9.2% (Sep) +8.6% (Oct) +7.7% (Nov) By type, mortgage loans went up KRW3.9 trillion in November, growing at a slower rate compared with the previous month (up KRW5.2 trillion) due to a continuous fall in housing transactions. Other types of loans including credit loans grew at a faster rate (up KRW2.0 trillion) compared with the previous month (up KRW0.9 trillion) due to an increased demand for IPO subscriptions in the last week of November. The growth of household loan balance has been steadily declining with the rise in credit loans also at a stable level. The financial authorities will continue to work on effective implementation of the household debt management measures introduced in October. * Please refer to the attached PDF for details.
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Dec 08, 2021

4th Green Finance Taskforce Meeting Reviews Progress and Discusses Additional Tasks

The FSC held the 4th green finance taskforce meeting with the relevant ministries and financial institutions in a virtual format on December 8 to review the progress made in the financial sector and discuss further tasks. Chaired by FSC Secretary General Lee Se-Hoon, participants went over the implementation of the climate risk management and supervision and key details of the green finance handbook for financial sectors in order to prepare for the recently revised up nationally determined contribution (NDC) target. The meeting also discussed the current environmental, social and governance (ESG) disclosure and assessment system and ways to promote social finance in line with the growth in ESG management and investment. Key Discussion Topics I. Climate Risk Management and Supervision The Financial Supervisory Service has introduced a guideline on the management of climate risks in the financial sector, detailing areas such as business environment and strategy, governance structure, risk management and disclosure. The FSS launched a climate risk forum in May 2021 to provide an appropriate venue for facilitating coordination among the relevant government agencies and financial institutions. The FSS has also worked to raise awareness on climate risks via international conference and plans to hold seminars and symposiums in the future. The authorities will work to promote utilization of the climate risk management guideline in the financial sector and share best practice cases with financial institutions in the private sector. In close cooperation with financial companies, the authorities plan to develop a climate economys scenario in the first half of 2022 and conduct a pilot stress test in the financial sector during the second half of 2022. II. Green Finance Handbook for Financial Sectors The five major trade groups in the financial industry have prepared a green finance handbook, providing best practice cases and reference information on financial institutions green
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Dec 07, 2021

Revised Enforcement Decree of FSCMA and Subordinate Rules to Take Effect from December 9

The government approved the revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act and its subordinate rules at a cabinet meeting held on December 7. The revisions prescribe specific details mandated by the revised FSCMA and provide legal basis for enforcement. The revisions will take effect from December 9, 2021. Key Details a) When an already listed securities firm wishes to add a business unit that is considered to be in an equivalent business area, the authorization process will be simplified and streamlined by requiring the company to register the additional unit instead of having to go through an approval process by submitting a business plan and qualifications of large shareholders. b) When a Korean branch of a foreign-based securities firm wishes to change its organizational status from a branch office to a subsidiaryor vice versathe approval process will be simplified by granting an exemption from an assessment of its business plan, requirements for human resources and electronic and other physical facilities and qualifications of large shareholders. c) When a securities firm becomes insolvent, investor deposits will be paid back to its customers by a deposit holding institution instead of the insolvent securities firm in order to guarantee a speedy and safe refund process. d) The severity of the fine for violating the large shareholding reporting rule (the 5% rule)will be increased to more effectively induce compliance. e) Companies quarterly disclosure burdens will be eased by requiring them to list only key material information in their quarterly reports while other types of information can be updated only when changes have occurred. f) When licensing procedure of a financial investment business has been suspended due to a criminal investigation of its owner or large shareholder, the authorities will review the viability of resuming the licensing process every six months or when considered appropriate even before
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Dec 07, 2021

Support for Vulnerable Debtors Available for Six More Months until June 2022

The FSC along with all financial sectors and relevant institutions agreed to extend the period of support available for vulnerable debtors who have been hit by the COVID-19 for six more months until June 30, 2022. These support measures for individual (non-corporate) debtors were first introduced on April 29, 2020 to help vulnerable debtors whose income levels fell due to the COVID-19 pandemic. The period of their availability has been extended twice thereafter to continue to provide support until the end of this year. As unemployment and job losses continue to weigh down these debtors amid a protracted pandemic situation, the authorities decided to extend the period of these supports for six more months until June 30, 2022. As such, pre-workout programs offered by individual lending institutions and the individual debt purchase program administered by the Korea Asset Management Corporation (KAMCO) will be available for six more months. Individual debt adjustment programs offered by the Credit Counseling Recovery Service (CCRS) is available on a regular basis. The FSC will work to provide a sufficient level of assistance to vulnerable sectors while preparing for an orderly exit from the pandemic-era policy. * Please refer to the attached PDF for details.
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Dec 06, 2021

FSC Chairman Discusses Key Policy Tasks for 2022 in Virtual Press Briefing

FSC Chairman Koh Seungbeom held an end-of-year press briefing in a virtual format on December 3 to discuss policy outcomes for this year and explain key policy tasks for 2022. At the beginning of his keynote address, Chairman Koh touched upon some of the important policy initiatives and their outcomes for 2021, including policies on household debt management, COVID-19 financial support for small merchants and SMEs, virtual asset service providers, digital transformation in the financial sector and financial consumer protection. Chairman Koh then discussed key policy tasks for 2022 as summarized below. Chairmans Remarks on 2022 Policy Focus The global economy is expected to maintain its recovery momentum in 2022 but market uncertainties are growing due to asset price volatility, rising prices and persistent concerns about inflation. Domestic situations are also concerning. Financial imbalances and potential risks need to be managed while the provision of pandemic-related supports should be maintained. Excessive debt levels should be reduced while assistance for the lower income and vulnerable groups should continue to be available. Ensuring stability in the financial system and pursuing inclusive financial policies may be contradictory in nature but seeking a proper balance between the two is the task of the financial authority. In this regard, the FSC will focus on the following three policy areas. First, the authorities will continue to work on tackling financial imbalances. Unlike some of the other major economies where debt levels have increased much more in the public sector, Korea has seen debt levels grow much faster in the household and corporate sectors. The household debt management plan for 2022 will be focused on managing the total amount of debt extended with a longer term plan for gradually introducing a more systematic management plan. With the application of the individual borrower-level debt service ratios (DSRs), stable management of household debt
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Nov 30, 2021

API-based Financial MyData Service to be Piloted from December

The FSC announced that financial MyData service will be pilot launched from 16:00 (Korean Standard Time) on December 1, 2021 as the 17 service providers including banks, financial investment businesses, card companies, a mutual finance company and fintechsthat have successfully completed a closed beta testing will begin to offer MyData services prior to the full launch on January 1, 2022. The financial authorities have been working closely with the financial sector and fintechs to improve the way consumers manage and access their personal financial data in a more convenient and safe way while guaranteeing the right to data privacy through MyData services. The efforts made by the authorities have thus far led to (a) an expanded scope of the types of data made available for MyData services, (b) a simplified personal authentication identity verification process, (c) the provision of stronger consumer safeguards and (d) the creation of an environment to promote fair competition between service providers. From December 1, 2021, the API-based financial MyData service will be piloted from 17 financial institutions and fintechs at first with some 20 other service providers including big techs and fintechs joining by the end of this year and 16 other MyData service providers including insurance companies and a credit bureau expected to join in the first half of 2022. The ten other prospective service providers that have gained a preliminary approval are expected to join in the second half of 2022 after their final licensing procedure. The financial authorities along with the MyData service providers and relevant institutions will closely monitor issues that need to be improved upon during the pilot period and ensure a seamless preparation for the full launch on January 1, 2022. Any update on the list of service providers and further information can be found at www.mydatacenter.or.kr. * Please refer to the attached PDF for details.
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