Koh Seung-beom, chairman of the Financial Services Commission, will expand the digital financial ecosystem by building data innovation infrastructure, artificial intelligence (AI)-based financial innovation, and enhancing digital trust (reliability). As part of that, we will soon meet with the heads of big tech and fintech to gather opinions from the industry and announce a digital financial innovation strategy.
However, it adhered to the principle of same function and same regulation between traditional finance and big tech.
In an online press conference on the 3rd, Chairman Koh said, “For digital financial innovation, it is necessary to develop the financial principles of financial stability and consumer protection in a balanced way along with inducing innovation and competition.”
In consideration of technological innovation, etc., he expressed his position to broaden the scope of movement of market participants, but to induce fair competition under the principle of equal regulation for the same function. Chairman Koh has been emphasizing the principle of ‘same function and same regulation’ for big tech companies right after taking office. As a result, the big tech industry has argued that applying the uniform regulation of traditional finance to big tech as it is is ‘regression of the market’.
In response to such controversies, Chairman Ko said, “We will continue to pursue policies for the stable and sustainable development of the fintech industry by taking a balanced approach to stabilizing the financial system and protecting financial consumers.”
He presented four digital financial innovation tasks. △Building data infrastructure for smooth creation of a digital ecosystem △Accelerating digital financial innovation using new technologies such as artificial intelligence △Laying the foundation to provide personalized services and various lifestyle comprehensive financial services △Responding to digital risks and financial security to secure digital trust reinforcement, etc.
Chairman Koh plans to hold a digital innovation finance meeting with the heads of big tech and fintech.
Representatives of big tech companies include In-hyuk Choi, CEO of Naver Financial, Seung-gun Lee, CEO of Viva Republica (Toss), and Young-joon Ryu, CEO of Kakao Pay (Chairman of Korea Fintech Industry Association).
Based on the results of the meeting, a ‘Digital Innovation Finance Development Strategy’ will be prepared. Currently, the Seoul National University Industry-University Cooperation Foundation is carrying out research services on ‘Main Tasks for Digital Innovation Finance.’ It will be announced in the first half of next year.
First, we seek ways to activate the conditions for combining and distributing data such as personal information and pseudonymous information. It also reviews the creation of information protection infrastructure for sustainable digital innovation finance. We will also devise a plan to introduce reliable authentication and identification technology.
Financial platform development strategies are also derived. The plan is to support financial companies’ entry into the financial platform business, while also nurturing the fintech industry to create a financial platform ecosystem.
Reporter Jihye Kim jihye@etnews.com
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