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May 28, 2020
- FSC Designates 4 More Financial Solutions as 'Innovative Financial Services'
- The FSC added four more financial solutions to the financial regulatory sandbox on May 27, bringing the total number of ‘innovative financial services’ to 106 since launching the financial regulatory sandbox program on April 1, 2019.CHAIRMAN’S REMARKSChairman Eun Sung-soo stated that the regulatory sandbox has made positive changes in the financial sectors since its inception. It has (a) brought more rapid, convenient and affordable financial services for consumers, (b) introduced new and innovative ways of raising capital for small merchants, and (c) accelerated digital transformation for the entire financial industry. In order to prepare for a post-COVID-19 era, the government is pursuing a ‘digital new deal,’ and the sandbox program is essential as it provides a testing ground for digital transformation.In order to more effectively operate the sandbox program, the FSC will (a) focus on testing new digital technologies, such as big data and AI, (b) seek changes in regulations for untact digital services as soon as their safety and security performances are verified, (c) work to extend the regulatory exemption period for fintechs and start-ups, (d) enhance the autonomy of the designated innovative financial services, and (e) provide support to fintech firms with their scale-up and overseas expansion opportunities.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SERVICES’1. An untact personal authentication service based on blockchain technologies allowing customers to issue and save their digital certificates for real-name verification purpose (SK Telecom, expected launch in June 2021)2. An untact personal authentication platform that provides customers’ real name verification information for all savings banks using a joint savings bank mobile app (Korea Federation of Savings Banks, expected launch in December 2020)3. An untact personal authentication service using facial recognition technologies (DGB Daegu Bank, expected launch in May 2021)4. A mobile
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Apr 01, 2020
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Feb 27, 2020
- Financial Policy Plans to Support Innovative Start-ups & SMEs
- The FSC outlined this year’s policy plans to support Korea’s innovation-led growth on February 26, 2020, as a follow-up to the 2020 work plan announced on February 17. The plans are intended to provide innovative start-ups and SMEs with financing support.KEY PLANSI. TARGETED SUPPORT TO 1,000 INNOVATIVE FIRMSThe government will select more than 1,000 innovative companies and provide KRW40 trillion in loans, investment and guarantees.▪ SELECTIONCandidates will be selected upon recommendations by economic ministries, financial companies and venture capitalists. A consultative body of policy banks will review candidates and select 1,000 companies based on their innovativeness of business.▪ FINANCIAL SUPPORTThose selected will be provided with KRW40 trillion over three years: KRW15 trillion in loans, KRW15 trillion in investment and KRW10 trillion in loan guarantees.▪ INNOVATIVE FIRMS WITH GLOBAL COMPETITIVENESSAmong 1,000 firms, 30 or more companies showing growth potential for global markets will be selected and provided with assistance to attract private investments from domestic and overseas venture capitalists.II. Introduction of Business Credit Scoring System Modeled after PaydexThe government plans to develop a business credit scoring system modeled after Paydex. The new system is designed to use companies’ non-financial business transaction information to determine their credit scores, thus offering companies a complementary channel to raise funds.▪ DEVELOPMENT PLANa) Set up a database of business transactions through collection of data from the Korea Credit Guarantee Fund and from external institutions, such as the Korea Financial Telecommunications Clearings Institute and the Korea Employment Information Serviceb) Produce business credit scores using the business transactions database after reviewing payment histories, business activities and payment capabilities of companiesc) Provide business credit scores to banks for the development of new gua
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Feb 17, 2020
- 2020 Work Plan Focuses on Financial Innovation to Support Innovative Businesses
- The Financial Services Commission along with other economic ministries presented the 2020 Work Plan on February 17, 2020. The FSC has outlined 10 key policy tasks for this year, which include a) redirecting capital flow toward SMEs and start-ups with innovative technologies and future growth potential, b) working on bold reforms in financial regulations while fostering convergence between new technologies and finance, and c) promoting inclusive finance and establishing a reliable financial safety net to support a comeback for those who have been discouraged by failed business attempts.The following are some of the key achievements so far in the areas of financial innovation.► Outstanding balance of movable asset lending by local banks doubled from KRW800 billion at the end of 2018 to KRW1.6 trillion by the end of 2019.► Outstanding balance of loans to SMEs by local banks increased from KRW610 trillion at the end of 2016 to KRW747 trillion by the end of 2019.► Number of newly listed companies on the KOSDAQ market rose from 82 to 108 between 2016 and 2019.2020 FINANCIAL POLICY TASKS1. REDIRECT CAPITAL FLOW TOWARD BUSINESSES FROM HOUSEHOLDS REAL ESTATES► Prevent capital concentration in the real estate market and introduce a new loan-to-deposit ratio which will encourage more corporate lending by financial companies.2. PROVIDE TARGETED SUPPORT TO 1,000 INNOVATIVE FIRMS► Select 1,000 innovative firms through a government-wide cooperation with other ministries and provide both financial and non-financial assistance in the amount of KRW40 trillion.3. ALLOW DIVERSE TYPES OF ASSETS TO BE USED AS COLLATERAL► Push for a revision of the Act on Security over Movable Property, Claims, etc. to introduce a lump-sum collateral system through which companies are able to collateralize a diverse set of assets including machinery, raw materials and inventory, and set up a movable collateral registry which will help collect collaterals and non-performing loans on behalf of f
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Dec 19, 2019
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Nov 21, 2019
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Nov 06, 2019
- FSC Designates Additional Financial Solutions as 'Innovative Financial Services'
- The FSC designated seven additional financial solutions as ‘innovativefinancial services’ to be accepted into financial regulatory sandbox. As of November6, the FSC has designated a total of 60 such services.Overview of Newly Added ‘InnovativeFinancial Solutions’1. An online-based paperless application solution for business-relatedinsurance products, such as fire or disaster liability insurance (Samsung Fire MarineInsurance)2. An online payment service which allows buyers of used goods topre-charge e-points with their credit cards and transfer e-points to sellers asa means of payment when purchasing used goods directly from the seller in onlinee-commerce platform (KBKookmin Card)3. A monthly wage payment solution which uses mobile location datato log individuals’ work hours and allows workers to receive wages prior to themonthly payday through an escrow account (Emmaus)4. An automated intellectual property report solution which analyzesthe economic value of intellectual properties using big data and artificialintelligence, and forward the information to financial institutions (Wisdomain)56. An alternative credit evaluation service for individuals,business owners and SMEs, which utilizes non-financial information, such as profitrecords, types of business, number of days in operation and so on, to analyzeand provide alternative credit rating system for small businesses (BC Card, KB Kookmin Card)7. A small sum investment platform which allows individualinvestors to trade small amounts in foreign stocks and diversify portfolios (Korea Investment Securities)
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Jul 25, 2019
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Jun 26, 2019
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Jun 12, 2019
- Fourth Batch of Financial Service Providers Designated as 'Innovative Financial Services' for FSC's Regulatory Sandbox
- The FSC designated additional six financial service providers as ‘innovative financial services’ to be accepted into financial regulatory sandbox. As of June 12, 32 services are approved to be tested in the financial regulatory sandbox.Overview of designated innovative financial services1. A simplified payment settlement agency service of online to offline(O2O) order payment services. (Paymint)2. A platform for transfer, management and settlement of small-sum money for lending circles. (Kona I)3. An artificial intelligence(AI)-based service that evaluates sustainability of a SME by analyzing the company’s non-financial information(ESG: Environment, Social, Governance). (Who’s Good)4. A simple payment service that allows a customer to make payments through SMS verification process. (Settle Bank)5,6. A service that calculates real-time price and mortgage value of real-estate properties using AI algorithm. (Big Value, Gonggam Lab)Innovative financial services to be launched for service in June1,2. An ‘on-off overseas travel insurance’ which a policy holder can simply activate(On) the travel insurance when going abroad, and deactivate(Off) it once he/she returns Korea. (NH Property and Casualty Insurance, Rainist)3-6. A mobile loan brokerage service using smart phone application that provides optimal information on various loan products such as interest rates and loan limit. (Finset, Finda, Viva Republica, MyBank)
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May 15, 2019
- Third Batch of Financial Service Providers Designated as 'Innovative Financial Services' for FSC's Regulatory Sandbox
- The FSC designated eight additional financial services as ‘innovative financial services’ to be accepted into financial regulatory sandbox, following the first and second batch of financial services announced on April 17 and May 2. As of May 15, 26 services are approved to be tested in the financial regulatory sandbox.The eight financial services will be submitted to Financial Innovation Evaluation Committee and FSC within June for evaluation.Overview of designated innovative financial services1. A loan brokerage service that provides loan products offered by different financial firms, and credit evaluation service using mobile phone usage record such as service enrollment period, roaming, and bill payment record using mobile phones. (Finnq)2. A 24-hour artificial intelligence (AI) based insurance consultation and sales service.(Persona System)3,4. A payment system using smart-phone-embedded NFC for merchants without fixed stores such as food trucks and street vendors that enables payment of products they sell without credit card payment device or POS terminal. (Paycoq, Korea NFC)5,6,7. A loan brokerage service that provides various loan conditions including fixed interest rates and loan limit of different loan products tailored to each consumer. (MiBank, Finmart, teamwink)8. A P2P money transfer service using QR codes. (BC Card)
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May 02, 2019
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Apr 17, 2019
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Aug 30, 2016
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Jan 15, 2015
