SEOUL, Feb. 6 (Korea Bizwire) — More than perhaps any other business sector, the phalanx of rules and regulations guarding the gates into financial services for new entrants has been imposing, a reality the government has decided to change in order to encourage the emergence of more specialized actors.
Financial Services Commission head Choi Jong-gu spoke at length about the measures planned for banks, insurance firms, trusts and investment firms to facilitate job growth and innovation at Yonsei University on February 5.
The approval process for specialized banks — app-only services Kakao Bank and K Bank, as well as mortgage banks and other special-purpose institutions — will be restructured in a manner that takes into account each institution’s area of service.
Insurance categories previously walled off (life, pensions, liability, long-term care, accident, reinsurance) will be made open for new specialized firms, and the government will deliberate on the possibility of introducing policies pertaining to short-term and small sum insurance categories (pets, travel).
Consumers will be able to purchase insurance policies online, and capital requirements for internet-only insurance providers will be lowered to boost numbers.
Specialized investment firms (KOSDAQ-KONEX brokerages and private equity firms) will likewise see their required capital holdings reduced by 50 percent.
Choi also discussed modifications to capital requirements for trusts as well as the growth of specialized offerings (will, dementia, pets).
The Financial Services Commission will establish a panel of civilian experts whose task will be to assess the competitive balance of the financial sector and advise regulators on drawing up measures down the line.
“By relaxing the rules governing entry into the sector, we expect there to be sizeable growth in job creation,” Choi said.
Internet banks have already directly and indirectly created 5,000 new jobs.
Lina Jang (email@example.com)