Press Releases - Financial Services Commission

Press Releases

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Jul 28, 2020

Vice Chairman Underscores Important Role of Finance for New Deal Initiative

Vice Chairman Sohn Byungdoo presided over the 14th financial risk assessment meeting on July 28 to review market conditions and monitor the progress in implementing the COVID-19 financial support.The following is a summary of Vice Chairman Sohn’s remarks.(RECOVERY EFFORTS AND SUPPORT FOR REAL ECONOMY) The government has worked to curve the spread of COVID-19 and minimize economic shocks amid continuing uncertainties about a second wave and economic lockdowns throughout the world. With the government’s rapid response in initiating market stabilization measures and the financial institutions’ active support, corporate lending has increased significantly compared to the pre-pandemic period. Domestic demand began to show signs of a recovery, setting the stage for a continuing recovery trend into the third quarter. The government will closely monitor and effectively manage risk factors while bolstering the role of finance to ensure that the government’s new deal initiative can serve as an impetus of the recovery.(FINANCIAL SUPPORT FOR EXPORT SECTORS) The lockdowns and economic downturns have caused a disruption for export sectors. The government has been strengthening support for export-dependent companies through preferential guarantees and emergency financing programs. For instance, the auto part suppliers and subcontractors support program which began in early July made available about KRW157.6 billion and KRW111.1 billion through KDB and IBK, respectively. The working capital support program for key industry suppliers is also expected to begin its operation within next week.(REINSTATEMENT OF FINANCIAL MARKET REGULATIONS) As the financial markets quickly recovered and continue to maintain stability, the temporary easing of regulations on the maximum call money for securities firms and call loans for asset managers will return to the pre-crisis level beginning in August. The temporary easing of liquid asset holding requirement for repo sellers (borrowers) will
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Jul 28, 2020

Government Approves Revised Rules to Promote Digital New Deal Initiative

The government approved the revisions to the enforcement decree of the Credit Information Use and Protection Act at a cabinet meeting on July 28, which marks the final legislative changes necessary for the promotion of a data-driven economy and digital new deal initiative.KEY REVISIONSI. ENSURING SAFETY IN DATA CONVERGENCEData convergence will be safely carried out by designated institutions specifically tasked with data convergence. Data specializing institutions shall provide pseudonymized and anonymized data to financial institutions.Data specializing institutions are required to maintain an appropriate level of human resources and set up a risk management system and internal control mechanisms.II. LOWERING ENTRY BARRIERS FOR NEW MYDATA CREDIT BUREAU BUSINESSESMore fintech firms will be given opportunities to start their own credit bureau businesses as the revisions restrict the required number of data specialists to maximum 10 professionals even for business entities wishing to apply for multiple CB licenses.In addition, new guidelines will be established to prohibit unfair practices by credit bureaus, such as discriminatory or preferential credit rating, etc.III. REQUIRING MYDATA BUSINESSES TO SAFELY PROTECT PERSONAL FINANCIAL DATA AND STRENGTHENING DATA PRIVACY RIGHTS FOR CONSUMERS New rules have been established to guarantee that MyData service providers are abiding by data privacy rights and data transfer rights of consumers.IV. IMPROVING DATA PROTECTION IN FINANCIAL SECTORFinancial companies will be required to inspect and report to the financial authority at least once every year the results of inspection for internal data management and protection status.Individuals will be entitled to explanations and formal objections against automated personal credit assessment or personal credit ‘profiling,’ which will help boost transparency in financial transactions.SCHEDULEThe revisions to the enforcement decree of the Credit Information Use and Protection Act
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Jul 27, 2020

FSC Announces Plans to Promote Digital Finance

The FSC unveiled its plans to promote digital finance on July 24, focusing on improving regulations for the industry, ensuring strong protection for digital finance users, building foundations and infrastructure to facilitate large volumes of digital financial transactions and strengthening data security to ensure stability in the financial system.BACKGROUNDDigital finance as a major ‘untact’ industry has grown significantly with the development of simple payment and money transfer services, authentication technologies and platform businesses. With the introduction of new technologies and the expanded use of e-commerce and telecommuting, digital transformation of the financial industry has been accelerated. The convergence of digital finance with ICT sectors and platform businesses will not only lead the transformation toward a digital economy but also help enhance financial inclusiveness.Recognizing the significance of digital finance, major economies have made changes to their regulatory framework to promote competition and innovation. Meanwhile, the Electronic Financial Transactions Act in Korea has not seen major updates since it was first enacted in 2006. As such, the current regulatory framework cannot fully accommodate the changes taking place in the financial industry which pose the following obstacles—a) relatively high entrance barriers for innovative electronic financial business entities, b) lack of strong user protection measures to guarantee safety in digital transactions and earn consumer trust, c) need for new infrastructure fit for new financial environment, and d) need to ensure financial data security.With the revisions to the Electronic Financial Transactions Act, the FSC will boost both convenience and safety of digital finance users, promote innovation and competition in the financial industry, and contribute to the government’s digital new deal initiative.KEY POLICY AGENDAI. PROMOTE GROWTH OF INNOVATIVE DIGITAL FINANCE PLAYERS (INDUSTR
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Jul 24, 2020

FSC Announces Financial Policy Direction for Post-pandemic Era

Vice Chairman Sohn Byungdoo presided over a meeting of the financial development review committee on July 24, and discussed the government’s financial policy direction for the post-pandemic era.The following is a summary of Vice Chairman Sohn’s remarks.(EXPECTED CHANGES CHALLENGES OF POST-PANDEMIC ERA) Unlike the previous financial crises, the COVID-19 pandemic has brought not only short-term economic shocks but also fundamental changes to the structure of our economy and society. The whole economy and industries are experiencing changes caused by disruptions in the global value chain and the rapid spread of contactless services and digital transformation. The financial industry is also experiencing changes with the spread of big data and AI in the industry and the emergence of big tech companies as financial service providers. Sharp increases in the share prices of bio-health or internet firms in recent months indicate that the market may be already preparing for a post-pandemic era.Considering the strength of our real economy, IT infrastructure and soft power, this may serve as a huge opening of opportunities for the Korean economy and financial industry. The past economic crises led to deepening economic polarization. If the current shock to the economy and job market continues to pose risks to the vulnerable groups, the deepening of the so-called ‘corona divide’ may turn into a wider risk.In the recovery process, it is necessary to watch out for the accumulation of risk factors due to the continuing trend of low interest rates and liquidity expansion. It is also necessary to closely monitor market instability due to preference for high-yield, high-risk investment products and risks in the non-banking sector.(FINANCIAL POLICY DIRECTION FOR POST-PANDEMIC ERA) The government’s financial policy for the second half of this year will focus on the following. First, it will be geared toward supporting the steady growth of the real economy and innovative firms.
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Jul 23, 2020

FSC Adds 4 More 'Innovative Financial Services' to Regulatory Sandbox

The FSC added four more ‘innovative financial services’ to the regulatory sandbox on July 23, bringing the total number of designated services to 110 since the sandbox program was first launched on April 1, 2019.In order to support digital transformation and promote the government’s new deal initiative, during the second half of this year, the FSC will begin to accept applications on a rolling basis with a particular focus given to new technologies such as big data, AI, digital authentication, payment, data security, etc. Interested firms may apply online throughout the year. OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SERVICES’1. An intellectual property rights based investment and fund raising mechanism that allows SMEs to raise funds with IP rights through trust companies and recruit investors through a crowdfunding platform (Hana Bank Wadiz, expected launch in January 2021)2. A mobile-based comprehensive retirement pension advising service that analyzes individuals’ multiple pension accounts and offers advises on pension products (Doomoolmori, expected launch in December 2020)3. An online financial investment platform that conveniently allows investors to purchase coupons for purchasing investment products on securities exchange platforms (KB Securities, expected launch in February 2021)4. A data analysis service using homomorphic encryption, which makes possible the coding of personal financial information stored in different financial institutions for analyzing purposes (Korea Credit Bureau, expected launch in august 2020) * Please refer to the attached PDF for details.
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Jul 23, 2020

FSC Chairman Holds Talks with Heads of Financial Holding Groups

FSC Chairman Eun Sung-soo held talks with heads of financial holding groups on July 23, and shared opinions about the recent issues surrounding the financial industry and expected changes in a post-pandemic era.At the meeting, Chairman Eun expressed appreciation for financial companies’ efforts in providing the government’s emergency financial support, which has earned recognition from both at home and abroad. As the COVID-19 pandemic continues to pose risks, Chairman Eun emphasized the need to stay alert for any negative ripple effects. In this regard, Chairman Eun urged cooperation from financial companies in ensuring a smooth implementation of the working capital support program for the suppliers in key industries, which will go into effect at the end of July. With regard to the scheduled expiration of loan maturity extension and deferment of interest payment at the end of September, Chairman Eun and the heads of financial holding groups agreed to continue to discuss the possibility of extension while closely monitoring market conditions in August.On the government’s new deal initiative, Chairman Eun emphasized the important role of the financial system in spreading and sharing risks and providing necessary funds to support innovative new deal projects. In particular, Chairman Eun noted the need to channel concentration of liquidity currently existing in the real estate market to more productive sectors.As big tech companies are entering the financial services industry, Chairman Eun said that there are positive effects from a consumers’ point of view, such as improved convenience and lowered costs, although there remain concerns about issues of fair competition and systemic risks. In this regard, Chairman Eun proposed the launching of a public-private joint consultative body composed of the government, traditional financial industry and big techs to facilitate discussion on win-win growth strategies.Chairman Eun also discussed the need for financial compa
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Jul 22, 2020

FSC Approves BC Card and Woori Bank's Holding of 34% and 19.9% Each in K Bank

The FSC announced its decision to approve BC Card and Woori Bank’s holding of 34 percent and 19.9 percent stake each in K Bank on July 22.Under the Special Act on Internet-only Banks, non-financial companies including ICT firms are permitted to hold a maximum of 34 percent of shares with voting rights.* Please refer to the attached PDF for details.
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Jul 21, 2020

Vice Chairman Highlights Role of Finance in Government's New Deal Initiative

Vice Chairman Sohn Byungdoo presided over the 13th financial risk assessment meeting on July 21 to review market conditions and monitor the progress in implementing the COVID-19 financial support.The following is a summary of Vice Chairman Sohn’s remarks.(NEW DEAL INITIATIVE) The government’s new deal initiative aims to turn the pandemic-induced crisis into an opportunity in order to facilitate the country’s leap forward and reshape the future of Korea’s economy. By investing about KRW160 trillion, the government plans to create 1.9 million new jobs. To maximize the impact of the government’s new deal policy, it is necessary to mobilize other types of financial resources alongside the government’s budget. In this regard, the FSC will actively support new investment projects and encourage private sector investment in new growth areas to help channel more funding sources into the new deal projects.(CAPITAL MARKETS) The pace of the recovery in domestic stock markets has been faster compared to the past crisis situations. A major difference with the COVID-19-induced crisis has been a rise in the number of retail investors in domestic stock markets. This has helped the stock markets to quickly bounce back in difficult times. As there are still risks related to uncertainties about a second wave and concerns over a delayed recovery, the government will work to create a safe and stable investment and asset management environment for retail investors while preparing for market volatility. In addition, the government will continue to implement various market stabilization measures and business support programs.To help strengthen foundations of capital markets and promote stock market activities, the government will a) improve the listing requirements to enable more innovative firms to be listed on stock markets based on their future growth potential while working to improve the listing and takeover rules to ensure high standards of professionality and accountabili
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Jul 21, 2020

FSC Chairman Holds Talks with Officials from Financial Companies, Big Techs and Fintechs

FSC Chairman Eun Sung-soo met with officials from financial institutions, big techs and fintechs as well as academia on July 21, and held talks on ways to promote the advancement of Korea’s financial industry.The following is a summary of Chairman Eun’s remarks.The digital transformation taking place in the financial companies, big techs entering the financial services industry and the growth of fintechs are all expected to bring about change and innovation in our financial industry. As such, the traditional financial companies, big techs and fintechs should build mutual understanding and cooperative relations with each other.Big tech companies should always adhere to the principle of fair competition while respecting the regulations and the system built upon the existing framework of financial laws. Both big techs and fintechs should work to ensure financial data security and consumer protection while working to prevent conflict of interests with their nonfinancial service functions.The traditional financial companies should focus on improving consumer convenience and developing innovative ways to provide financial services. The government will support their efforts for innovation. On the issues concerning fair competition or regulatory arbitrage, the government is always willing to listen to constructive opinions and suggestions for solution.To level the playing field in the financial industry, the government will build foundations for fair competition by implementing fair and reasonable regulations, such as the financial regulatory sandbox program, while working for a balanced development between financial innovation, consumer protection, financial information security and data protection.The FSC will set up a joint public-private consultative body composed of officials and experts from the government, financial institutions, fintechs and big techs in the third quarter this year. The joint consultative body will discuss diverse issues including regulatory ref
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Jul 20, 2020

FSC Announces Revisions to P2P Lending Guidelines

The FSC announced changes to the peer-to-peer lending guidelines on July 20 to ensure that investor protection measures are put in place during the one-year deferred registration period until August 26, 2021.The Online Investment-linked Finance Act scheduled to take effect on August 27, 2020 grants the business entities already engaged in P2P lending services a one-year deferral of P2P business registration to facilitate a seamless transition and prevent any disruption in their business operation during the registration review process. There have been concerns about the possibility of regulatory arbitrage by unregistered P2P lending service providers and of subsequent damage to investors. As such, the revised guidelines will include various investor protection measures prescribed in the Online Investment-linked Finance Act to be applicable to the unregistered P2P lending service providers. KEY CHANGES IN GUIDELINESI. STRENGTHEN DISCLOSURE RULESa) Require P2P lending platforms to disclose information about financial management status and liquidation processb) Require P2P lending firms to provide investment information by different product typesII. PROHIBIT UNFAIR SALES ACTIVITIESa) Require firms to match the maturity date, interest rate and total amount of investment to those of loan products to prevent loan scamsb) Prohibit discriminatory behavior in favor of or against certain investorsc) Prohibit offering or accepting excessive rewards to and from investorsd) Prohibit loss coverage for investorsIII. RESTRICT SALES OF HIGH-RISK INVESTMENT PRODUCTSa) Restrict sales of high-risk P2P loans or investment products, such as collateralized debt obligationsb) Restrict P2P lending to private loan service providers or special purpose vehiclesIV. TIGHTEN ADVERTISING RULESa) Apply more stringent rules on P2P loan advertisement materials placed on platforms other than its ownb) Prohibit advertising on other platforms to recruit investorsV. IMPROVE REQUIREMENTS FOR INVESTMENT MA
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Jul 17, 2020

SPV to Start Purchasing Corporate Bonds and CP

The government announced the official launching of the special purpose vehicle intended to support businesses facing liquidity problems by purchasing corporate bonds and CP on July 17.BACKGROUNDThe government, the Bank of Korea and the Korea Development Bank unveiled a joint plan for creating an SPV on May 20. Since then, the relevant institutions have worked toward the official launching of the SPV on July 14. In the meantime, the passage of the 3rd supplementary budget at the National Assembly enabled capital injection of KRW1 trillion to KDB. Between May 20 and July 13, the KDB purchased KRW300 billion worth of low-rated corporate bonds to help stabilize markets before the launching of the SPV. In addition, the Bank of Korea announced its decision to lend KRW8 trillion to the SPV on July 17.KEY DETAILS(SIZE) Up to KRW10 trillion made up of KRW1 trillion (10%) in equity capital from KDB, KRW1 trillion (10%) in subordinated loans from KDB and KRW8 trillion (80%) in primary loans from BOK, with the possibility of expanding the size up to KRW20 trillion(PERIOD) SPV’s bond purchasing program will be operated on a temporary basis for six months from July 14, 2020 until January 13, 2021, with the possibility of extension afterwards.(TARGETS) Investment grade corporate bonds and CP issued by nonfinancial companies with priorities given to low-rated companies (A~BBB ratings) and ‘fallen angels,’ BB-rated bonds downgraded from investment grades due to COVID-19-related factorsThe SPV is expected to help alleviate liquidity problems for many low-rated companies.* Please refer to the attached PDF for details.
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Jul 16, 2020

FSC to Work on Enhancing Transparency in Financial Regulatory Environment

FSC Chairman Eun Sung-soo presided over the 43rd financial hubs establishment committee meeting on July 16, and discussed ways to reassess the government’s financial hub policy following recent changes in market environments at home and abroad.The following is a summary of Chairman Eun’s remarks.The competition over the status of regional financial center in Asia has been accelerating. The Korean government has been pursuing its financial hub policy since it first unveiled the strategy in 2003 to turn Korea into a financial hub in Northeast Asia. However, due to increasing uncertainties in the global financial markets, financial companies have been reducing the number of overseas branches, and it has become more difficult to attract foreign based financial companies in Korea.Despite difficulties, it is important to regroup strategies based on the strength of our financial industry and renew our efforts. In this regard, the rising demand for asset management and growth in foreign investment continue to accelerate the globalization of the asset management industry. In addition, the rising demand for development finance in neighboring countries provides new opportunities for Korea through the government’s new northern and southern economic cooperation initiatives.Compared to other major financial centers in Asia, high corporate and income tax rates, lack of flexibility in labor markets and that of transparency in financial regulations have been pointed out as obstacles for Korea in becoming a major financial center in the region. From the perspective of macroeconomic management, the government’s capacity to change its tax or employment rules just for the purpose of advancing its financial hub policy will be limited. In the meantime, the government will work to enhance transparency in our regulatory environment and find innovative ways to improve competitiveness of our financial industry.* Please refer to the attached PDF for details.
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Jul 16, 2020

FSC Announces Plans to Launch Task Forces as Part of Efforts to Root Out Vishing Scams

The FSC announced regulatory changes to minimize inconvenience for consumers and improve efficiency in damage prevention and remedy provision, while introducing plans to create task forces as part of the government-wide efforts to root out vishing scams on July 16.TASK FORCESa) TF on legal regulatory system: Work on fair and balanced ways to improve rules on liability for damagesb) TF on fraud detection system: Strengthen the monitoring of vishing scams and other types of suspicious financial transactions by requiring financial companies to adopt fraud detection system (FDS)c) TF on public service advertisement: Bolster efforts to increase public awareness on vishing threats by making available more public service advertisements through diverse channelsd) TF on insurance: Improve vishing insurance system, including coverage and premium, and expand sales channelsSCHEDULEThe FSC will operate task forces until the end of this year to improve and strengthen the nationwide vishing scam prevention efforts.* Please refer to the attached PDF for details.
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Jul 16, 2020

FSC Launches Working Group to Draw Up Plans for Promoting AI in Financial Services

The FSC held a kick-off meeting of the working group on the promotion of artificial intelligence technology in financial services on July 16. The meeting discussed major trends and policies surrounding AI application in financial services as well as the plans for the working group.BACKGROUNDWith the pandemic-driven acceleration in digital transformation, AI technology in financial sectors has become more relevant. AI technology allows more efficient data management and has high potential to create jobs and value-added services. Promoting AI technology and big data is a significant policy task of the government’s ‘New Deal’ project. In financial sectors, the use of big data is already widespread for a variety of services including credit scoring, loan application, insurance and asset management. AI technology can help improve the effectiveness, inclusiveness and accountability while lowering costs in providing financial services.WORKING GROUPThe working group is made up of officials and experts from both the public and private sectors including AI specializing firms, fintechs, financial companies, other relevant institutions and academia. The working group will be organized into four key functional subgroups as shown below.a) Legal regulatory group: Draw up guidelines to promote application of AI in financial services as well as ethics guidelines on AI-based financial servicesb) Infrastructure group: Develop AI data library and AI testbed to support RDc) Consumer protection group: Draw up standards for consumer protection and remediesd) Regtech suptech group: Review ways to apply AI in regtech and suptech to boost effectiveness in regulatory compliance and financial supervisionSCHEDULEThe working group aims to unveil its plans for AI promotion by the end of this year.* Please refer to the attached PDF for details.
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Jul 15, 2020

Corporate Asset Purchase Program to Begin Accepting Applications

The FSC announced that the corporate asset sell-off support program will begin to accept applications beginning on July 17. Online application will be available at www.oncorp.or.kr.Since the government first announced its plans to launch the corporate asset purchase program on June 11, the FSC and the Korea Asset Management Corporation (KAMCO) have taken necessary steps to promptly launch the program.The following factors will be considered in the selection process—urgency, efficacy, fairness and impact on the real economy.Given the demand and the need to facilitate corporate asset sell-offs, the application review process will be carried out swiftly.KAMCO’s review committee will make final decisions about the appropriate price to offer based on the appraised value suggested by an external institution.* Please refer to the attached PDF for details.
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Jul 15, 2020

Extension of Reporting Deadline Available for Companies Affected by COVID-19

The Securities and Futures Commission decided on July 15 to lift administrative sanctions and grant a 30-day extension of deadline for companies that are unable to meet the quarterly or semi-annual reporting deadline of August 14 due to pandemic-related disruption in their business operation. As such, the Korea Exchange will also put off placing them on the watch list for supervision during the 30-day extension period.To be exempted from sanctions and receive a 30-day extension, companies or their auditors should submit applications to the Financial Supervisory Service between July 20 and 24.- Companies with branches or business operations in countries where economic activities are disrupted by the COVID-19 pandemic-related conditions that have difficulties in filing their quarterly or semi-annual financial reports on time- Auditors facing obstacles in filing audit reports as scheduled due to COVID-19-related reasonsThe FSS will review applications submitted by companies and auditors, and the SFC will decide on the final results during its regular meeting scheduled for August 5. For companies that receive exemptions, quarterly or semi-annual reporting deadline will be extended until September 14.* Please refer to the attached PDF for details.
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Jul 14, 2020

Government to Introduce Personal Credit Rating System Using NPS Contributions Data

The FSC and the Ministry of Health and Welfare announced on July 14 that an improvement to the personal credit rating scheme using information about individuals’ national pension contribution payments will be made available in October this year.The government has worked on improving the personal credit rating system using nonfinancial data, such as information about individuals’ contributions toward national pension and health insurance, along with the National Pension Service (NPS) and Korea Credit Bureau (KCB).In December 2019, the FSC designated Korea Credit Bureau’s data analysis service using homomorphic encryption technology as an ‘innovative financial service’ to be included in the regulatory sandbox program, which allowed data convergence between KCB’s credit data and NPS’ contributions data while paving the way for developing an improved credit rating model.Taking into account research findings that show a positive correlation between diligent contribution payments to national pension and low probability of loan defaults, the improved personal credit rating system will offer additional points to personal credit scores for the period of diligent contribution payments.As the improved credit rating system will go into effect in October this year, national pension subscribers are eligible to receive maximum 41 additional points for their credit scores. Up to 550,000 KCB-registered national pension subscribers are expected to see their credit scores go up. In particular, recent graduates and young adults who have thin credit records will benefit from this system.It also marks the first time application of homomorphic encryption technology in the world.* Please refer to the attached PDF for details.
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Jul 14, 2020

Vice Chairman Discusses Importance of Preparing for Post-pandemic Era

Vice Chairman Sohn Byungdoo presided over the 12th financial risk assessment meeting on July 14 to discuss the financial market conditions and monitor the progress in implementing the COVID-19 financial support.The following is a summary of Vice Chairman Sohn’s remarks.(ECONOMIC RECOVERY) Recent forecasts suggest that the global economy is expected to rebound after 2021 although the speed and shape of the recovery may be different from country to country as there are looming uncertainties.The economic indicators in Korea began to show signs of improvement backed by the government’s comprehensive K-quarantine response system and measures to support the real economy. Domestic demand improved for two straight months as consumption and business sentiment increased. Credit card transactions also rose compared to a year ago, while exports fell at a slower rate in June.In order to build upon these positive results and continue the recovery momentum, the government will work to ensure that the COVID-19 relief and support programs are implemented effectively.(PREPARATION FOR POST-PANDEMIC ERA) The qualitative changes to our lifestyle and the economy caused by the COVID-19 pandemic are here to stay. In this regard, agile responses to changes are required in the post-pandemic era.The pandemic has accelerated digital transformation and the move toward “untact” or contactless economic activities. As the pandemic exposed vulnerabilities in the global value chain, new growth industries have emerged and more businesses are reshoring. To prepare for an “untact” economic environment, the government has been promoting innovation and easing regulations through the financial regulatory sandbox program, open banking system and revisions to the three key data-related laws. To help businesses improve their competitiveness, the FSC along with relevant ministries and policy banks will provide consulting to those who consider switching business types or restructuring.The shift to
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Jul 13, 2020

Preliminary Application Opens for MyData Businesses

The FSC announced the opening of the preliminary application process for MyData businesses from July 13 until August 4.Prospective MyData service providers in the financial sectors should obtain license from the FSC. The preliminary application process is to ensure that prospective applicants meet the requirements and that the licensing process goes smoothly.The licensing process will generally take three months and in sequence. The FSC will begin to review up to twenty applications at once starting from August. Priorities will be given to the businesses that had already begun providing MyData services prior to the government’s announcement of plans for MyData businesses on May 13, 2020. To ensure fair and objective review process, the review committee will be made up of outside experts from diverse sectors, such as management, IT security, consumer protection, etc.The licensing process will begin in August.* Please refer to the attached PDF for details.
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Jul 09, 2020

FSC Chairman Speaks about Promoting Artificial Intelligence in Financial Industry

FSC Chairman Eun Sung-soo visited the Korea Insurance Development Institute’s automobile technology research center in Icheon-si, Gyeonggi-do on July 9 to see the application of artificial intelligence in auto insurance, and held talks on the topic of the insurance industry in the 4th industrial revolution and post-pandemic era.The following is a summary of Chairman Eun’s remarks.With the 4th industrial revolution, technological innovation is rapidly taking place throughout the world. The financial industry is also experiencing changes in its structure and terrain. In a post-pandemic era, this changing trend, such as digitalization of the economy and development of untact services, is expected to accelerate even further.The insurance industry has diverse channels through which it provides services to consumers, and is closely connected to different industries, which is why it has a high potential for convergence with innovative technologies. In this regard, the AI-based auto damage appraisal service is an excellent example of technological convergence in the insurance industry.The FSC will set up a working group to draw up plans to promote AI in the financial sectors, which will focus on improving regulations, building infrastructure and ensuring consumer protection.In order to ensure a continuous growth of the insurance industry, different attempts and tryouts for innovation and adapting to changes should be highly encouraged.The FSC will strongly support the insurance industry’s efforts at innovation through its regulatory sandbox program and continuous efforts to improve regulations.* Please refer to the attached PDF for details.
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