Press Releases - Financial Services Commission

Press Releases

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Jan 19, 2022

FSC Holds Kick-off Meeting for Making Indemnity Health Insurance More Sustainable

The FSC held a kick-off meeting of the public-private joint consultative body for making improvements to the indemnity health insurance system on January 19. The consultative body made up of officials from the relevant government and regulatory agencies, research institution and industry groups was established to refine the complementary function of indemnity health insurance offered by the private sector and guarantee its sustainability alongside the state-operated National Health Insurance (NHI) program. At the kick-off meeting, officials discussed the following issues and areas where improvements can be made. a) Sustainability issue related to the insurance premium hikes and cost burdens on the insured, excessive medical treatments and nonessential hospital visits, etc. b) Convenience issue related to the complicated offline insurance claims process c) Complementariness issue concerning the relationship with the state-operated NHI system particularly in the area of out-of-pocket expenses (copayments) d) Transition issue as the indemnity health insurance 4.0 became available from July 2021 Starting from the end of January, the FSC will set up working level groups with industry officials and experts to discuss and look into detailed areas where improvements can be made to the indemnity health insurance system. The FSC will continue to closely coordinate with the relevant ministries to help reduce costs for insurance and medical services. * Please refer to the attache PDF for details.
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Jan 19, 2022

FSC Chairman Holds Meeting to Review Debt Risks of Small Merchants

FSC Chairman Koh Seungbeom held a meeting with officials from the Bank of Korea, Financial Supervisory Service, research institutions and local banks on January 19 to check business conditions of small-scale businesses and their debt risks as the loan maturity extension and payment deferment program is set to expire at the end of March 2022.The following is a summary of Chairman Kohs keynote address. Chairmans Remarks Self-employed small businesses make up about 87 percent of all businesses and 21 percent of economically active population in Korea. However, these businesses have suffered greatly in the past two years amid the COVID-19 pandemic crisis. The financial sector has provided them with loan maturity extensions and deferment on interest payments and it has helped to ease small merchants payment burdens on some KRW272.2 trillion worth of business loans between April 2020 and November 2021. In addition, the small merchant lending support programs made available low interest rate busines loans to those facing liquidity problems. From the end of this month, adjustments made to the card processing fee rates will also help ease small merchants fee burdens.The prolonged pandemic situation, however, has raised concerns about a spread of potential risks to the financial system. For the past two years, the speed of debt growth for the self-employed has exceeded that of the household sector. An accumulation of bad debts can threaten stability in the financial system. In particular, delays in business recovery coupled with interest rate hikes can lead to a credit crunch and pose greater problems for small businesses. The loan maturity extensions and payment deferments for small merchants and SMEs are set to expire at the end of March 2022. Although it is difficult to predict events two months ahead, it is certain that there will be contradictory policy tasks between ensuring the risk handling capacity of small businesses and strengthening risk management in the financia
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Jan 18, 2022

Government Makes Available Low Interest Rate Lending Support for Small Merchants

The FSC and the Ministry of SMEs and Startups announced the availability of KRW8.6 trillion worth of low interest rate business loans for small merchants whose business operations have been hit by the prolonged COVID-19 social distancing measures. The lending support which will be available from January 24 aims to provide relief to some 860,000 small scale businesses that have been hit by the pandemic distancing measures and received assistance through the governments loss recovery fund from the end of last year. The total size of the low interest rate lending support program is KRW10 trillion funded by the governments fiscal expenditure. Small scale businesses that have experiences setbacks from the prolonged COVID-19 social distancing measures can apply to receive up to KRW10 million each at an interest rate between 1 percent and 1.5 percent based on their credit standing starting from January 24. Applicants with low credit scores can apply for loans through the Small Enterprise and Market Service (SEMAS). Those with mid-range credit scores between 745 and 919 can apply for loans with special guarantees from local credit guarantee foundations. Small merchants with credit scores of 920 or above can apply through local banks. Application will be available via mobile apps from local banks to help speed up the lending process. * Please refer to the attached PDF for details.
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Jan 17, 2022

KoFIU to Effectively Inspect and Supervise AML Compliance Duties

The Korea Financial Intelligence Unit announced its inspection and supervision plan for 2022 as the volume of digital financial transactions increases and new types of money laundering threats emerge. Since 2019, the number and the types of business entities that are subject to inspection by the KoFIU under the Act on Reporting and Using Specified Financial Transaction Information have grown to include electronic financial service providers, private loan businesses, peer-to-peer lending companies and virtual asset service providers. With more sophisticated types of money laundering threats emerging due to a rise in digital financial transactions and advancement in criminal activities, the KoFIU will work to allocate and use resources to achieve the utmost efficiency in the inspection and supervision of anti-money laundering (AML) duties. (New entities and vulnerable sectors) The authorities will carry out site inspections on 124 electronic financial service providers and 60 private loan businesses with focus on the entities that are deemed to have relatively low levels of internal control standards vis--vis their risks for money laundering threats. The inspection will specifically check their compliance with the customer due diligence (CDD) rule, internal control system and the appropriateness of their STR (suspicious transaction reports) and CTR (cash transaction reports). The KoFIU will also resume inspections on nine casino businesses after a temporary halt on inspection due to the pandemic-induced business closures. The KoFIU and the Financial Supervisory Service will strengthen inspection on the issues that are considered as common risks by closely sharing information and coordinating on risk-based responses. (Commissioned inspection agencies) The authorities will carry out site inspections on the commissioned inspection agencies for AML activities, such as mutual finance companies, Korea Post and Korea Customs Service to enhance their professional capacity and
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Jan 14, 2022

FSC Chairman Meets with Private Thinktank Officials to Discuss Policy Issues

FSC Chairman Koh Seungbeom met with the heads of private thinktanks on January 14 and held talks on financial market conditions, industry forecasts and relevant policy issues. At the meeting, thinktank officials suggested ideas on (a) facilitating digital transformation and boosting competitiveness in the financial industry, (b) fostering an environment for fair competition between financial institutions and big tech businesses, (c) promoting capital markets while guaranteeing investor protections, (d) providing support for preemptive risk management by financial companies and (e) introducing new ways to deliver financial services in line with the changing socioeconomic and market conditions, such as the rise of gig workers and financial companies moves to carbon net zero management. Chairman Koh stated that the financial authorities will take their suggestions into account when implementing various policies in 2022 and pledged to pursue the following measures(a) upgrading relevant regulations to allow expansion of business areas for financial companies in line with shifting conditions in financial markets while promoting digital transformation and more platform-based services, (b) applying the principle of same rules for same services when dealing with the relationship between big tech businesses and financial companies, (c) seeking innovative ways to promote capital markets while ensuring investor safeguards, (d) encouraging prudent management and strengthening soundness of financial institutions in different sectors and (e) promoting alternative methods of evaluating credit using non-financial data and pursuing policies related to climate change and carbon net zero goals. * Please refer to the attached PDF for details.
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Jan 13, 2022

FSC Chairman Emphasizes Stability as Key Policy Priority in Meeting with Expert Group

FSC Chairman Koh Seungbeom held a meeting with a group of experts on January 13 and discussed potential risk factors in domestic and overseas markets and ways to properly respond to them. The expert group consisting of academia, columnists and thinktank officials discussed various issues including the need to find a new equilibrium in policy mix, deepening market volatilities, the need to manage risks in the nonbank sector, loan loss provisions of financial institutions and the shifting paradigm in global value chains. In his keynote address, Chairman Koh stated that maintaining stability in the financial system remains as top policy priority for this year. The following is a summary of Chairman Kohs remarks. Chairmans Remarks From the second half of 2021, the financial authorities have been working on measures to prepare for potential risks in markets. The Feds monetary policy changes, continuing pandemic situation, a slowdown in Chinas economic growth and dispute between the U.S. and China can have impact on the Korean economy and financial markets. In response to these potential risks, the authorities have made efforts to build foundations for easing financial imbalances by bringing down growths in new lending and housing prices. To build upon these outcomes, the authorities will first and foremost work on stable management of household debt. Unlike the previous year where the focus was on controlling the total quantity of household debt, the focus this year will be on making systemic improvements through an expanded application of the individual debt service ratio rule, etc. In the meantime, the authorities will ensure that credit extension to the financially vulnerable groups remains available. Second, the authorities will work to minimize negative effects on vulnerable debtors such as small merchants and self-employed business owners in the process of policy normalization. Looming interest rate hikes amid a continuing pandemic situation can place extra burdens
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Jan 13, 2022

Household Loans, December 2021

The outstanding balance of household loans in all financial sectors rose KRW0.2 trillionfrom the previous month at the end of December 2021, showing a significant decline in the growth rate. The household loan balance dropped KRW0.2 trillion in the banking sector while rising KRW0.4 trillion in the non-banking sector. The grow rate across all financial sectors in 2021 was 7.1 percent, a slowdown from 8.0 percent in the previous year. Household Loans (in trillion won): 8.6 (Aug 2021) 7.8 (Sep) 6.1 (Oct) 5.9 (Nov) 0.2 (Dec) By type, mortgage loans rose KRW2.6 trillion in December, declining from KRW3.9 trillion in the previous month due to a slowdown in housing transactions. Other types of loans including credit loans fell KRW2.4 trillion with the end of the year effect. The accelerated growth rate in household loans over the past two years amid the pandemic appears to have entered a stable path with the overall growth rate standing at 7.1 percent in 2021. The financial authorities will continue to work on various measures to contain the household debt growth to ensure effective risk management while allowing a continuation of credit extension to the financially vulnerable groups. * Please refer to the attached PDF for details.
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Jan 12, 2022

Authorities to Designate Additional Data Handling Institutions to Meet Growing Demand

The FSC announced its plan for designating additional data specializing institutions amid growing demand for data convergence and the need to promote data industry in both financial and non-financial sectors.The government made a decision to designate additional data specializing institutions at an inter-ministerial meeting held on July 28, 2021. Since then, an expert taskforce has been set up to review diverse issues concerning the designation process, requirements and standards. (Designation standards) The authorities will make designations based on the following criteriaaccountability, professionalism and openness. First, the authorities will seek to select entities that have excellent records in guaranteeing high levels of network security and conflict of interest prevention. Second, the authorities will seek out those with professional expertise and proven records of effectively carrying out data handling functions. Third, the authorities will select those that can make genuine contributions to promote openness and competition in the data industry. (Designation process) The authorities will accept applications during the preannounced period and make selections based on a review by an outside expert committee. The number of designations made will be determined later conditional upon the result of the expert committee review. Designation will be for a three-year term to ensure the maintenance of professionalism by designated entities. After an information session scheduled for January 25, the authorities will accept applications on February 24-25 and plan to make additional designations in the first half of this year. * Please refer to the attached PDF for details.
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Jan 12, 2022

FSC Introduces New Lending Caps and Liquidity Rules on Mutual Finance Firms

The FSC decided to introduce new lending limits and liquidity rules on mutual finance companies in order to help boost their soundness and address the problem of regulatory arbitrage between mutual finance companies. The rules change to the supervisory regulation on mutual finance business is a follow-up measure to the revision to the Enforcement Decree of the Credit Unions Act which was approved at a cabinet meeting held on December 28, 2021. (Lending limits) Credit extension to the real estate and construction sectors will each be limited to 30 percent of the total lending with the total amount of credit extension to both real estate and construction sectors capped at 50 percent of the total lending. (Liquidity rules) Mutual finance businesses will be required to maintain a 100 percent liquidity ratio in principle. However, smaller entities will be subject to lower liquidity requirements. Those with total assets in the range of KRW30 billion to KRW99 billion in the preceding business year will be required to maintain at least 90 percent liquidity ratio and those with total assets below KRW30 billion in the preceding business year will be subject to the minimum 80 percent liquidity ratio. The revision to the supervisory regulation on mutual finance business introducing new lending limits and liquidity rules will go into effect from December 29, 2024. For those with total assets of KRW100 billion or more in the preceding business year, at first, a 90 percent liquidity ratio will be applied for one year until December 28, 2025 with a 100 percent liquidity ratio kicking in thereafter. * Please refer to the attached PDF for details.
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Jan 10, 2022

FSC Introduces Measures to Revitalize KONEX

The FSC announced a set of measures aimed at promoting the Korea New Exchange (KONEX) market by providing more incentives for companies to list on KONEX, lowering entry barriers and easing requirements for investors and creating a scale-up fund worth up to KRW100 billion to be invested in the KONEX-listed firms. The measures are intended to help revitalize the market and facilitate the functioning of KONEX as a crucial linkage between early-stage startups and SMEs and the capital markets. Background KONEX was created in July 2013 exclusively for the purpose of facilitating early-stage SMEs and startups to raise funds prior to listing on the KOSDAQ market. Between 2013 and 2021, the number of listed companies on KONEX, their market capitalization as well as the daily average transaction total increased significantly. The number of firms successfully making a transition from KONEX to KOSDAQ also grew steadily. However, the number of newly listed companies on KONEX has been declining in recent years as more firms prefer to list directly on KOSDAQ and due to the expanded availability of alternative investment assets such as unlisted securities through the over-the-counter (OTC) market. Low liquidities in the KONEX market have recently led to underwhelming transactions with the function of price discovery also remaining inadequate. As such, the authorities have prepared the following measures to help revitalize the KONEX market. Key Measures I. Promote new listing by improving rules To help make the transition to KOSDAQ easier, the authorities plan to ease the currently applied financial requirements on KONEX-listed firms for the so-called fast-track transition to KOSDAQ and create additional tracks for KOSDAQ listing based on the companys market capitalization and liquidity levels. In addition, for KONEX-listed firms, some of the compliance burdens associated with internal accounting management, disclosure and the fee for designated consultant will be lowered. II. Remov
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Jan 06, 2022

FSC Proposes Rules Change to Improve Accessibility and Efficiency of Data Convergence

The FSC introduced a revision proposal to the Enforcement Decree of the Credit Information Use and Protection Act and its subordinate regulation on January 6. The revised measures are aimed at improving the accessibility and efficiency of data convergence between different industries (for both financial and non-financial sectors). The authorities also made available an updated guideline for data anonymization and pseudonymization in the financial sector. Below are some of the key changes included in the proposal. a) Startups, SMEs and other smaller sized entities with no big data of their own will be allowed to use the data convergence service which will help boost their access to a variety of financial sector data. b) Convergence of different sets of sample data will be treated equally as data convergence, requiring no prior approval from the owner of such data. c) Data specializing institutionswill be able to more freely use their own data for the purpose of converging with data from a third party when the appropriateness of the anonymized data has been tested by another data specializing institution. d) Data specializing institutions will be designated for a three-year term and their qualifications will be reassessed every three years. e) Government institutions can be designated as data specializing institutions. The revision proposal will be put up for public comment for forty days between January 7 and February 16, 2022. * Please refer to the attached PDF for details.
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Jan 04, 2022

API-based Financial MyData Service Fully Launched from January 5

The FSC announced that the API-based financial MyData service will be fully launched from 16:00 (KST) January 5, after a month-long pilot period leading to improvements in the system. As of January 5, 2022, 33 MyData service providers including banks, financial investment businesses, card companies, savings banks, and fintechs will offer MyData services using standardized APIs.Additional 21 entities are expected to make their MyData services available in the first half of this year after getting their system ready. During the pilot period,the authorities along with the financial industry, fintechs and other relevant institutions have worked to bring about improvements in the system stability, data compatibility and consumer convenience. From a consumer standpoint, the API-based MyData service provides an enhanced level of data privacy and information security by placing a ban on scraping and requiring tech assessment tests and an annual inspection on system vulnerability. Financial consumers can also enjoy a greater level of convenience as more types of financial data can be accessed more quickly and easily at a single place. The API-only MyData scheme will allow MyData service providers to receive consumer data from the relevant data providing institutions more quickly and stably. The API-based MyData system will also provide an impetus for further innovation in business models as MyData service providers become connected to more types of data providers than before. From an industry-wide perspective, the API-based MyData system will help resolve the problem of data monopoly by broadening data access to fintechs and promoting competition. It will also help create quality jobs in the field of data science. The authorities will set up a special response team to ensure stable operation and provision of MyData services by conducting real-time monitoring and taking appropriate measures to guarantee consumer data privacy and security. The special response team will be exp
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Jan 03, 2022

FSC Outlines Plan to Launch KRW4 Trillion New Deal Fund in 2022

The FSC announced an overview of the 2021 New Deal fund management result and outlined its plan for 2022. In 2021, the New Deal fund was created in the amount of KRW5.6 trillion, which surpassed the governments initial goal of raising KRW4 trillion. About KRW500 billion from the fund has been invested in digital and green New Deal sectors with greater proportions of investments expected to follow in 2022-2025. In 2022, the authorities plan to operate New Deal funds based on the following four principles and measures as stated below. (Increased private sector participation) In 2022, a New Deal fund worth KRW4 trillion will be newly launched with fiscal investments of about KRW1.4 trillion with some KRW2.6 trillion investments expected from the private sector. Apart from the current overseersthe Korea Development Bank and K-Growth Fundanother fund management company will be chosen from the private sector to operate and manage approximately 20 percent of the fund (approximately KRW800 billion) in 2022. (Realigned policy priorities) The 2022 New Deal fund will be launched in a way that prioritizes investment in carbon net zero initiatives and local new deal sectors. Based on the latest K-taxonomy and other industrial trends in green and digital areas, investments will be directed toward key future-oriented sectors. (Prompt fundraising investment) The fundraising (fund sale) period will be reduced from eight months previously to seven months to help speed up the launch process. The relevant ministries and authorities will make investor information sessions available on a regular basis to continue to look for new investment opportunities. (Better performance management) The authorities will seek to have an independent performance review on the fund overseers by outside experts to help strengthen their performance management. The fund management companies will regularly make public their fund management status to ensure transparency and boost accountability. The KDB and th
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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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