[신년사] Kim Joo-hyun, Chairman of the Goddess Association, “Innovative rather than big tech… Actively negotiated with affiliate fees”

[한국금융신문 유정화 기자] Joohyun KimcloseJoohyun KimCollect articles “It is time to show the market that credit card companies can move forward more innovatively than big tech and fintech,” the president of the Korea Credit Finance Association stressed.

Chairman Kim said in his New Year’s address on the 31st, “The government has decided to allow the entry of card companies in the comprehensive payment and settlement industry through participation in the card industry for my data and open banking, and then the revision of the Electronic Financial Transactions Act.” A large institutional framework has been prepared for fair competition with Fintech, and the credit has passed to our industry,” he said.

“It is time to show the market that card companies can develop into a new form of comprehensive financial industry beyond the traditional credit card industry based on the solid roots of the payment and settlement sector.” Through the digital finance consultation channel, we will discuss various problems that may arise in the future and plans for institutional improvement, and we will make various efforts such as consultation with the supervisory authority.”

Next year, the discussion on recalculation of the franchise fees eligible expenses will begin again. President Kim diagnosed that “the level of fees for credit card merchants in Korea is not high internationally, and is low compared to other fees borne by small business owners due to several cuts.” He said, “However, since various issues may be raised, the Association will actively consult with the authorities and stakeholders for multilateral measures so that reasonable costs can be calculated when discussing eligible costs and recalculations.”

Regarding the capital business rights such as leasing and installment financing, there is a saying, “In the grandchild military law, there is a term of military duty details and a handicapped type”. “The biggest advantage of the capital business is that the market flow and demand change are more I think it is the ability to quickly grasp and preoccupy the market through a more flexible and agile response than any other financial sector.”

“We will make various efforts such as discussions with supervisory authorities to ensure that necessary measures are implemented in a timely manner, while closely discussing necessary regulatory improvements and new market development plans with member companies so that these advantages of the capital industry can be fully demonstrated.” Said.

In addition, “We plan to induce proactive and proactive risk management of member companies through the’best practice for liquidity risk’.” “We will actively consult with the authorities to prevent any business contraction from occurring.”

Kim Joo-hyun, president of the association, added, “If we gather strength and wisdom through closer communication with the industry and the association as one, we will be able to make it a valuable year for sustainable management next year.”

The following is the full text of Kim Joo-hyun, the president of the Goddess Association.

New Year’s Message in 2021

Dear employees of the credit finance industry!

The eventful Gyeongja year of 2020 is over

The hopeful New Year of 2021, the new year has dawned.

I hope you will accomplish all your will for this year,

May you and your family be full of health and happiness.

Last year, many people had a difficult time due to the unexpected’Corona 19′, and it is expected that more time will be required for the Korean economy to recover to normal this year.

Our industry had difficulties such as instability in the financing market at the beginning of last year, but it quickly regained stability through active support from the government and agile response from the industry. Deferring debt repayment for small and medium-sized self-employed and vulnerable borrowers, and corona prevention cooperation through card payment system It also played a meaningful role in overcoming the crisis caused by the corona, such as the rapid execution of disaster support funds.

In this process, the association also made efforts to smoothly provide government support for member companies who are having difficulty in financing, and by making efforts to create a fair competition environment between big tech/fintech companies and card companies, the my data required for digital financial innovation, It is now possible to participate in open banking, and it is expected that participation in the comprehensive payment and settlement business will be possible in the future. In addition, in the field of new technology finance, significant system improvements were made, such as allowing new engineers to participate in CVC.

Dear employees of the credit finance industry!

Given the domestic and international conditions surrounding our industry this year, I expect this year to be a year where tensions cannot be released.

Digital Transformation is accelerating further due to the recent corona crisis, and if you don’t get on this trend first, someone will rise first and lead the market. As big-tech/fintech companies enter the financial market in earnest, a new and difficult competitive landscape that has not been experienced before will be approaching faster.

On the one hand, concerns have been raised that the delay in repayment of debts from the vulnerable due to COVID-19 may lead to deterioration in the health of the industry in the event of a delay in the economic recovery, and various institutional improvements related to financial consumer protection and a lower legal maximum interest rate are still in the industry. It is expected to have a lot of impact on the management of the company.

Under complex and uncertain business conditions, the need to lay the foundation for sustainable management for our business is more pressing than ever. In this situation, I thought about what the association should do this year.

Regarding card business rights,

Following the participation in the card industry for My Data and Open Banking, the government has decided to allow the entry of credit card companies in the comprehensive payment and settlement industry by promoting the amendment of the Electronic Financial Transactions Act.

A large institutional framework has been established for fair competition with Big Tech/Fintech companies, and the credit has passed to our industry. Now, we show the market that our industry can move forward more innovatively than big-tech/fintech companies, and by doing so, based on the solid roots of the payment and settlement sector, we can go beyond the traditional credit card business and develop into a new type of comprehensive financial industry. It’s time to give.

In the future, more specific and various issues will continue to be raised in the process of digital conversion of card companies. The association discusses various problems that may arise in the future and plans to improve the system through various digital finance consultation channels such as the mobile council operated with member companies, and promotes successful digital innovation in the industry by making various efforts such as consultation with the supervisory authority. I will apply.

This year, the discussion on recalculation of the franchisee’s fee-eligible costs begins again. I believe that the level of fees for credit card merchants in Korea is not high internationally, and is low compared to other fees borne by small business owners due to several rate cuts.

However, since various issues may arise, the Association will actively discuss multilateral measures with the authorities and stakeholders so that reasonable cost can be calculated when discussing eligible cost recalculation.

About the lease and installment financing business right (capital business right),

We will support our efforts to secure new revenue sources in a variety of ways and ensure that risk management in preparation for various business uncertainties can be carried out rationally.

In the grandson’s defense method, there are words such as military affairs details (兵無常勢) and sumusang (水無常形). The biggest advantage of the capital industry is the ability to grasp market trends and demand changes more quickly than any other financial sector, and to preoccupy the market through a more flexible and agile response than any other financial sector.

We will make various efforts, including discussions with supervisors, etc., to ensure that necessary measures can be implemented in a timely manner while discussing necessary regulatory improvements and new market development plans with member companies so that these advantages of the capital industry can be fully exercised.

Earlier last year, some capital firms struggled with the money market crunch. In this regard, there is high interest from the supervisory authorities and the market on risk management in the capital industry.

The association plans to induce proactive and preemptive risk management of member companies through the’Liquidity Risk Best Practices’. Furthermore, we will actively consult with the authorities to prevent excessive management contraction by making rational regulations in consideration of overall management soundness, such as securing liquidity of capital companies, for leverage regulations on capital companies.

In the case of new technology finance business,

New investment performance is expected to reach an all-time high despite last year’s Corona 19 crisis, and venture investment is expected to be actively conducted this year through the K-New Deal Fund, which is being promoted by the government.

Regarding the K-New Deal Fund, the Association will actively support new technology finance companies to be selected as fund managers by providing sufficient information to member companies for selection of managers through meetings with fund management institutions. In addition, through consultation with the authorities, we will endeavor to improve necessary systems, such as allowing indirect investment between new technology investment associations.

Lastly, we will make various efforts to enhance consumer protection and secure trust. In particular, in response to advances in digitization and advances in hacking technology, we provide a safe environment for using credit card payment infrastructure, such as using virtual card numbers when purchasing overseas goods, and effectively respond to illegal use through close cooperation with the Financial Security Agency and international brands. We will thoroughly prepare for the financial security risks accompanying the digital environment, such as building a network.

Dear employees of the credit finance industry!

Large and small changes and difficulties are expected in many fields this year as well. This situation is just chaos for those who are stagnant, but for those who are ready, it will be a turning point for a leap forward.

There may be difficulties big and small, but if the industry and the association gather strength and wisdom through closer communication with the unified mind of the industry and association, this year will be a valuable year for the sustainable management of the credit finance industry.

I wish you all a good win this year.

Thank you.

Reporter Yoo Jeong-hwa [email protected]