South Korea’s FSC has introduced new coverage measures in 5 key areas to advertise fintech and digital finance, and set up a stronger basis for monetary sector innovation.
Korea’s FSC (Monetary Companies Fee) has introduced its key coverage plans in 5 key areas to advertise the fintech and digital finance sectors.
To advertise innovation in digital finance, open banking performance might be expanded to permit participation by mutual finance and monetary funding companies, whereas the FSC additionally works on further measures to boost safety for monetary customers.
The FSC can also be pushing for the enactment of a legislative provision that may require banks to offer their cash switch service performance through an open API.
The FSC can also be searching for to boost monetary knowledge safety by requiring inside threat management mechanisms at monetary firms by way of the institution of a set of rules on digital safety threat administration. On this regard, the regulator may even function a “public-private joint threat administration framework” and bolster response mechanisms for incident response groups.
For third get together threat administration, the FSC will strengthen its IT outsourcing safety administration framework and arrange a threat monitoring system to assist detect potential dangers emanating from non-financial sectors.
To advertise the info economic system and assist the info business play a number one function in monetary innovation, the federal government may even work to additional construct knowledge infrastructure and set up a framework for knowledge safety. It will assist promote the introduction of recent knowledge companies within the monetary sector, together with MyData companies and credit score bureaus.
To enhance the non-public credit score analysis system, a brand new score-based system (1~1,000 factors) might be adopted in place of the present credit standing system (1~10 rankings). An impartial monitoring committee might be arrange to make sure credit score bureaus operate correctly.
A brand new open database may even be established to allow the viewing of economic knowledge held by 9 state-backed establishments through an open API. It will embody data on firms, monetary establishments, public disclosures, capital markets and authorities gross sales of state-owned property.
To domesticate fintech companies, the FSC is working to determine guidelines for the implementation of the brand new laws on P2P lending, which is able to take impact on 27 August, together with to make sure enough safeguards for traders.
In a bid to advertise AI (synthetic intelligence) adoption within the monetary sector, the FSC will arrange a testbed that gives knowledge for machine studying and verification of algorithms. Additionally it is engaged on ethics and regulatory tips for AI-based monetary companies, and on establishing a safety evaluation framework particularly specializing in AI.
The FSC may even promote the applying of regtech within the monetary sector, particularly in areas comparable to AML and KYC.
On regulatory reform within the fintech and digital sectors, revolutionary monetary companies might be chosen for the regulatory sandbox till March 2020 – the one yr anniversary for the reason that launch of the sandbox programme.
Short-term licences and extensions of regulatory exemptions may even be supplied to sandbox contributors, the place wanted.
‘Small licences’ might be launched to ease the entry of smaller and specialised fintech corporations to the business.
To strengthen Korea’s basis for innovation, fintech incubating services might be expanded, and help might be supplied to assist revolutionary corporations supply funding and develop their actions throughout borders.
A Fintech Innovation Fund may even be established in March, searching for to offer fintech companies with funding value KRW 300 billion over the subsequent 4 years.
An funding platform run by the Fintech Heart Korea may even be launched in April to match fintech corporations and traders.
The complete checklist of measures is out there right here (obtain).