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| Financial Services Commission (FSC) Chairman Kim Joo-hyun speaks during a joint meeting on deregulation in the financial sector at the Government Complex Seoul, Tuesday. Courtesy of FSC |
By Anna J. Park
Aiming to facilitate digital financial innovation in the country, the government has decided to deregulate further the financial sector by promoting financial companies' diverse online platform businesses, while strengthening the government's innovation-led growth initiatives.
According to the Financial Services Commission (FSC) Tuesday, the financial authority as well as other related government ministries and financial industry associations, met earlier in the day at the Government Complex Seoul to hold the second installment of a joint meeting under the banner of promoting financial deregulation.
FSC chief Kim Joo-hyun, Financial Supervisory Service (FSS) Governor Lee Bok-hyun, leaders of various financial associations, including the bank federation, investment companies' associations, life insurers and non-life insurers' associations and the fintech association, all gathered at the meeting.
"Under the clear goal of supporting digital financial innovation for both traditional financial firms and fintech companies in a balanced way, the government will promote the financial platform businesses," FSC chief Kim said during the meeting, adding that above all, the financial authority hopes to come up with measures that could provide convenient and safe financial services for consumers.
"Sound competition among financial firms, fintech businesses as well as big-tech firms would result in voluntary innovation, while greatly expanding consumer benefits during the process," he said.
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| Dozens of related government agencies and financial associations gathered together to attend the joint meeting for financial deregulation held at the Government Complex Seoul, Tuesday. Courtesy of FSC |
As their first move to accelerate deregulation of the financial sector, the FSC and the attending agencies decided actively to promote financial firms' platform businesses. For example, companies are being encouraged to set up so-called digital universal banks, while insurers are being encouraged to launch healthcare financial platforms, which consumers can use to get comprehensive information in just one quick search.
Consumers will also have easy access to national pension services, their health insurance plans or other tax plans through banking or financial apps. Regulations that currently hinder the flexible operations of businesses will be lifted in time as well.
The deregulatory move also allows financial companies' pilot programs to run brokerage businesses, such as selling other companies' insurance plans or loan services to consumers on a company's financial app.
The financial authority added that such business operations will be remaining as pilot programs for a while, as the government will also prepare for measures to complement any side effects that could happen during the process.
The FSS, meanwhile, vows to monitor closely the market as well as companies' app business operations, in order to protect consumers.
