The head of Korea’s financial regulator on Jan. 16 vowed to ease regulations and support the promotion of domestic fintech industry.
“Based on the fintech infrastructure we built last year, 2019 will become a golden time to boost the fintech industry,” Financial Services Commission Chairman Choi Jong-ku said during a meeting with fintech executives.
By the fintech infrastructure he was referring to new legislation and budget allocated for related companies.
“We will lend our unlimited support to create global fintech companies,” said the FSC chief, who appeared in a rare outfit of a gray hoodie.
One of the new legislations is a regulatory sandbox which gives pilot authorization or regulatory relief to innovative fintech firms. The sandbox or “Special Act to Foster Financial Innovation” is slated to take effect on April 1.
Starting Jan. 17, the revised internet-only bank law allows big tech firms to own a full-fledged bank. Under the current regulations on separation of financial and commercial capital, a non-financial company with more than 10 trillion won (US$8.60 billion) in assets is banned from owning more than 10 percent stake in a financial company. The revision will elevate the stake limit to 34 percent for an ICT firm to become the largest shareholder.
Financial authorities will also encourage banks to channel more funds into the fintech sector, Choi said.