SEOUL, Jan. 29 (Korea Bizwire) – A host of measures designed to lower the barriers of entry and ramp up competition in the financial sector have been devised by the Financial Services Commission (FSC) for 2018.
The FSC will increase the number of online insurance firms – there is currently only one in operation – and ease capital requirements for the formation of new financial investment firms to create an attractive environment for specialized financial firms to materialize.
These specialized firms run the gamut from pet and child insurance SMEs and online firms to dementia, will and real estate trusts.
Specialized securities firms will see their capital requirements halved from the current 3 billion won to 1.5 billion won and the approval process remodeled into a licensing system.
An official at the FSC promised, “In the first financial quarter, the regulations pertaining to the barriers of entry to the financial sector will be revamped, and competition and innovation in the sector rapidly enhanced.”
Also on the FSC’s agenda is wrapping up a “Fintech Vitalization Road Map” before the end of February. This bundle of initiatives will bolster the fintech services industry with 2 trillion won in investment by next year.
The Korea Insurance Development Institute will conduct research to develop statistical yardsticks for insurance products providing coverage in the self-driving autos market, and lay the foundation for a blockchain-integrated identification system applicable to the banking and insurance sectors.
At the National Assembly next month, a “special act on the support of innovative financial services” bill will be introduced and discussed. The prospective legislation’s core tenets consist of the removal of the requirement for government approval and various regulations for piloting new financial services products.
In addition, certain regulations pertaining to cutting-edge technological implementations will be eased.
The FSC will look to encourage the incorporation of big data analysis into financial services operations by drafting necessary regulations and legislation.
Firms in the financial industry will be expected to improve their credit rating systems through the use of big data not only from the public and financial sphere, but also from communications and online shopping, among other sources.
Regulations for new entries into the monopolized sector of credit bureaus will be modified, and these agencies will going forward be given the green light to conduct their own big data analysis and consulting activities.
The FSC will take a look at the regulations concerning personal information agreements and introduce changes that should make them more reasonable, but also more secure, such as the right to an explanation for personal information use and the right to object.
Lina Jang (firstname.lastname@example.org)