Chairman Kim Joo-Hyun of the Financial Services Commission announced his ambition to foster a financial company that leads the global financial industry like BTS, which is leading the K-pop craze through financial regulatory innovation.
The FSC launched the Financial Regulation Innovation Conference on the 19th to create institutional conditions for financial regulation innovation.
The Financial Regulation Innovation Conference was composed of 17 private experts, including the Financial Services Commission, the Chairman of the Financial Supervisory Service, the Association Chairman, and the research institute head. It is an organization that discusses nine major and 36 detailed tasks in four areas: promoting digital transformation, building innovative infrastructure, advancing capital markets, and improving supervisory administration.
At the first meeting on the same day, the former honorary Chairman of the Korea Employers’ Federation, Park Byung-won, was appointed chairperson, and the direction of financial regulatory innovation was discussed.
In his remarks, Chairman Kim said, “As an independent industry, the financial industry must develop as one of the axes of a dynamic economy, but financial regulations must not get in the way. It is to create a new chapter for players who lead the global financial market to emerge.”
He continued, “We will provide support to become a global financial company regardless of online or offline and provide conditions for actively promoting digital innovation. We will continue to do so,” said the principle of regulatory innovation.
As major tasks for regulatory innovation in the financial industry, △Improvement of regulations that block the digitalization of financial companies △ Rationalization of rules for business owners △ Establishment of infrastructure for digital financial innovation △ Reorganization of infrastructure in the capital market △ Improvement of supervision, sanctions, and inspection administration.
Chairman Kim emphasized that “to promote digital transformation, it is necessary to ease regulations on separation of finance and industry” and “plan first to consider ways to improve the scope of work and restrictions on investment in subsidiaries so that IT and platform-related sales and investment in new technologies can be vitalized.”
He added, “It is also necessary to improve the business entrustment regulations more flexibly so that cooperation with tech companies can be strengthened, such as using big data analysis technology and linking non-financial information.”
He explained the regulation of full-time owners: “We plan to test-operate financial product brokerage services through online platforms for deposit and insurance products, and consider ways to support financial companies so that they can develop into financial platforms.”
Chairman Kim said, “To build an infrastructure for digital financial innovation, it is necessary to upgrade existing systems such as My Data, open banking, and regulatory sandbox to one level, and to induce responsible growth of new digital industries such as virtual assets and fragmented investment. We will also establish a system,” he said.
Meanwhile, the Financial Regulation Innovation Conference plans to participate in the government-wide regulatory innovation system actively.
The government plans to promote the expansion of harmful regulations and the reduction of regulatory costs, supervised by the Prime Minister’s Office. Collaborative tasks between ministries will be presented to the Economic Regulation Innovation Task Force (TF), and core tasks will be given to the President’s Regulatory Innovation Strategy Meeting.