FSC Korea announced recent progress in the operation of the financial regulatory sandbox. Through its sandbox program, regulatory improvements were made to eight areas, with five additional areas in the process of revision and fourteen more recognized as necessary for reform. FSC Korea has been operating a financial regulatory sandbox program since April 01, 2019 and nearly 110 innovative financial services have been designated to be included in the sandbox so far.
The five rule revisions resulting from the regulatory sandbox program involve revision of rules on the supervision of insurance businesses to simplify the process of insurance renewal, revision of Financial Investment Services and Capital Markets Act to bolster the autonomy and accountability of financial investment businesses, and few enhancements to the Credit Information Use and Protection Act. Among the in-progress revisions, regulations on financial investment businesses are being revised in October 2020 to ease restrictions for trust companies and to promote more diverse types of financial investment products. A few of the revisions being drawn up are as follows:
- External research being conducted to allow financial companies to enter into the big data and other platform businesses
- Expert opinions and consulting sought for ways to improve regulations to allow retail investors to trade both foreign and domestic stocks in small amounts
- A task force to draw up plans to establish a new personal authentication and ID verification system fit for the era of contactless transactions
- A task force and external research Q3 2020 to draw up plans for digital security in financial sectors, with a focus on network separation rules
- Revisions to the Electronic Financial Transactions Act submitted for enactment to the National Assembly to lower entry barriers for electronic financial businesses by introducing small licenses and lowering minimum capital requirements
- Revisions to the Credit Guarantee Fund Act to be prepared for strengthening the role of credit guarantee funds, which will provide SMEs with more fundraising opportunities
Related Link: Press Release (PDF)
Keywords: Asia Pacific, Korea, Banking, Insurance, Securities, Regulatory Sandbox, Fintech, Regtech, FSC
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