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31 July


Korea to reform real-name financial transaction law

FSC to enhance digital financing in post-pandemic era

Eun Sung-soo Photo: Yonhap

/NOVOSTIVL/ The government will push ahead with an amendment to the Real Name Financial Transactions and Confidentiality Act that has been said to bar innovative verification methods from being used in financial transactions, according to the Financial Services Commission (FSC), Thursday. This article appeared in Korea Times.

"Since its enactment in 1993, it has regulated the way of opening accounts ― the starting point of financial transactions ― over the past three decades," FSC Chairman Eun Sung-soo said during a press conference at the Government Complex Seoul.

"As it requires face-to-face verification, however, calls have grown for its revision."

He promised the FSC will come up with reforms for authentication and verification methods in the financial sector within the third quarter of the year to satisfy consumers' demands for convenient financial transactions.

According to the top financial regulator, this is part of its efforts to enhance digital financing in the post-COVID-19 world.

The FSC has mentioned the introduction of digital financing as one of the major tasks it should carry out once the pandemic is under control.

In addition to the non-face-to-face verification, the FSC promised to boost the big data industry.

The FSC said 120 among 317 data pieces registered on the Financial Data Exchange were traded on the exchange which was launched May 11.

Starting from October at the earliest, it will license financial, IT and telecommunication firms to do "MyData" business which will enable them to receive their customers' credit information from conventional financial firms, if their customers allow them to do so.

At the same time, the regulator vowed to tighten security in the financial sector, which has been considered more important since illicit payments were made recently via a Toss money transfer app using stolen data.

However, the FSC chairman said this case will not affect the internet-only bank license given to Toss.

During the press conference, he also said the Korea Asset Management Corporation and private equity firms will spend over 2 trillion won to purchase large and small- and medium-sized enterprises' assets put on the market, so as to supply liquidity to them.

Regarding a short-selling ban that is supposed to be lifted Sept. 15, Eun said that while the removal would be gradual, the ban could be extended if needed.