Legislative Initiative Conflict to Appraisal Fight.. Rep. Kwan-Seok Yoon “We will discuss disagreements with the Financial Consumer-Centered Act”
(Shutterstock)
Conflict is spreading between the Bank of Korea and the Financial Services Commission over the revised bill of the Electronic Financial Transactions Act (Electric Money Act). In recent years, the National Assembly Planning and Finance Committee and the Political Affairs Committee have made different legislative initiatives, and they are also heading towards an emotional battle.
◇ The key is permission and supervisory authority related to payment settlement = The core of the conflict is the permission and supervisory authority related to settlement and settlement. The Financial Services Commission is promoting fintech (financial technology) and big-tech (large information and communication companies) as well as protecting users and securing service infrastructure by accelerating digital transformation of the entire financial sector. On the other hand, the BOK is strongly protesting that the Financial Services Commission can become the so-called Big Brother Act, which collects all transaction information of big tech companies such as Naver through the KFTC (the KFTC) without any restrictions, and violates the central bank’s own business. .
In this regard, Eun Seong-soo, chairman of the Financial Services Commission on the 19th, said, “It is a misunderstanding that Han Eun is a big brother. Collecting data is to protect victims in the event of a financial accident.”
However, the center of gravity is the atmosphere placed on the bank’s side. At the recently held’Joint Symposium on Economics’, Professor Yang Ki-jin of the Graduate School of Law of Chonbuk National University said, “If the amendment to the Electronic Payments Act is passed, personal information related to electronic payment transactions can be concentrated indefinitely without being restricted by related laws.” “The amendment to the Electric Money Act is the Big Brother Act.”
In fact, pursuant to the provision for liquidation of electronic payment transactions (Article 36-9) newly established in the amendment to the Electronic Funds Act, financial transaction secrecy under the Real Name Financial System Act, consent to the provision and use of personal credit information under the Credit Information Use and Protection Act, and personal credit information Restrictions on use, restrictions on the use and provision of personal information for purposes other than the purpose of the Personal Information Protection Act, as well as the relevant provisions of the laws prescribed by Presidential Decree will not be applied.
The idea that the Financial Services Commission will supervise KFTC is also the idea of putting the BOK under the Financial Services Commission. In fact, in February 2019, an official from the Financial Services Commission said, “The head quarter (HQ, headquarters) is the Financial Services Commission. Han Eun in charge of the large payment system and the KFTC in charge of the micro payment system are only hands and feet.” KFTC is currently a non-profit organization, and decisions are made at the general meeting of employees, and the governor of the Bank of Korea is the chairman of the general meeting.
◇ Korean-American lukewarm attitude fosters conflict = The conflict between the two organizations began to emerge on the surface from the second half of last year when the’Amendment to the Electronic Financial Transactions Act’ was prepared by the Financial Services Commission and initiated by the Democratic Party’s Rep. Yoon Gwan-seok, the chairman of the National Assembly’s political affairs committee. BOK Governor Lee Joo-yeol spent 11 minutes and 20 seconds at a 59-minute press conference immediately after the Financial Monetary Committee on November 26 last year, saying, “There is a problem with the provisions on the payment and settlement industry. Payment and settlement management, and stable operation and management of the system were exceptionally strongly criticized, saying, “This is the core unique function of the central bank.”
Earlier, on November 22 last year, the Democratic Party Rep. Yang Gyeong-sook, a member of the National Assembly Committee, asked the BOK to establish operational standards for the payment and settlement system, and granted the BOK the right to submit data and request corrections. Also initiated. Each of these bills was submitted to the National Assembly Committee and Political Affairs Committee this month.
It also spreads through emotional battles. It is said that Rep. Yoon Gwan-suk broke out in agony over the recent head of the governor Lee Ju-yeol. Multiple BOK officials said, “At the time of promulgation of the amendment to the Pandemic Act, Rep. Yoon asked for his opinion to the governor, and Lee, who showed a lukewarm attitude at the time, criticized strongly at the Financial Services Commission last November, and said that Congressman Yoon was headed behind.” He said, “Because I did not know much about the payment and settlement business, I became a situation where I was able to stop it with a hoe.”
Regarding this, on the 21st, Rep. Yoon said, “I don’t think I was talking about it.” It is a pity that only payment is an issue.” “Finance is moving to digital finance. Fintech and Big Tech also appeared. The aim is to create a bill centered on financial consumers,” he said. “The first emphasis is placed on protecting the benefits and interests of financial consumers. There is also a public hearing this week. Disagreements will be discussed during the deliberation process.”
Some voices criticized the amendment to the Jeongeum Act as Naver Act. A BOK official said, “If the money law is revised, the payment infrastructure that banks have built up until now will be used by big tech companies such as Naver for free.” “The money law is the Naver law for Naver.”
Meanwhile, the attempt by the Financial Services Commission to lead the payment and settlement business was announced on February 25, 2019, when the’Financial Settlement Infrastructure Innovation Plan for Fintech and Financial Platform Revitalization’ was announced. At that time, it was also an opportunity for Kim Hak-soo, a standing member of the Securities and Futures Committee of the Financial Services Commission, to sit at the KFTC for the first time as a non-Korean banker.