SEOUL, Mar. 21 (Korea Bizwire) — The government has announced a series of reforms to boost the South Korean financial technology industry, which could see brand new products including artificial intelligence-based insurance products introduced.
The plans revealed by the Financial Services Commission (FSC) on Tuesday revealed a number of new financial products, including insurance products based on the Internet of Things, self-driving technology, and artificial intelligence, while financial firms will be allowed to provide discretionary investment and trust fund services through video calls.
With customers no longer having to visit a physical branch to complete paperwork, the new move is expected to attract more interest and invigorate the industry.
In an effort to boost the robo-advisor market, the FSC has also allowed service providers to specify terms and conditions on their website, which previously had to be explained to customers via video chat.
While the new reforms proposed by the FSC will focus on financial products in the health industry, using apps and wearables for health management and insurance pricing, some of the financial regulations previously put in place will also be lifted, allowing crowdfunding for smaller restaurants and the beauty industry.
Experienced private investors will be given a boost and have their investment limit doubled, from 10 million won per company to 20 million won.
Staying in line with a focus on the latest technology, discount deals could be provided for vehicles with advanced safety technology such as lane departure warning systems, while efforts will also be made to vitalize mobile payment solutions.
For instance, incentives are currently under consideration for those using app-to-app payment services in which a seller’s money goes straight into the online account of a customer, without having to require a value-added network and credit card terminals.
Efforts to adopt blockchain technology in identity verification services will continue, according to the FSC.
Following the financial investment sector, both the banking and insurance sectors will launch blockchain-based identity verification services. Customers will be able to make financial transactions after being verified by one company.
Hyunsu Yim (email@example.com)