FSC has designated nine additional financial solutions as innovative financial services to be included in its regulatory sandbox program. Since the launch of the regulatory sandbox in April 2019, FSC has made a total of 77 such designations. FSC also established a supervision and inspection framework for innovative financial service operators, in an effort to provide support for successful testing, protect consumers, and ensure financial stability. The supervision and inspection framework is designed to encourage innovative financial service operators to take a more self-regulatory approach during the entire process of designation to launch and commercialization. On December 04, 2019, FSC also announced measures to promote fintech scale-ups and these measures include 24 key tasks in 8 different policy areas.
The key measures are related to the following:
- Improving the current regulatory sandbox system
- Performing regulatory reforms to facilitate fintech development
- Lowering entry barriers to financial industry
- Establishing regulatory foundations for digital era
- Developing new growth engines for financial innovation
- Promoting investment in fintech & fostering a private sector-driven venture capital ecosystem
- Assisting fintech firms with overseas business opportunities
- Expanding public sector support for fintech firms
FSC also notified that a demand survey is being conducted for 4 weeks (from December 10, 2019 to January 07, 2020) for the operation of regulatory sandbox program in 2020. FSC plans to hold an information session on January 10, 2020 to provide relevant information to businesses and listen to their opinions.
Additionally, FSC co-hosted a launch event for open banking service with the Korea Financial Telecommunications & Clearings Institute on December 18. Open banking service was pilot launched in Korea on October 30 with participation by 10 banks. Open banking will be available for a total of 16 banks and 31 fintech businesses, as more and more fintech firms are expected to join in the future. To continue to promote innovative financial solutions through open banking, FSC Chairman Eun Sung-soo said that the government will establish legal foundations through revision of the Electronic Financial Transactions Act while expanding the scope and function of open banking service.
- Press Release on Designation of Financial Solutions (PDF)
- Press Release on Scale-Ups (PDF)
- Press Release on Open Banking Service (PDF)
Keywords: Asia Pacific, Korea, Banking, Innovative Financial Services, Regulatory Sandbox, Fintech, Fintech Scale-Ups, Open Banking, FSC
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