Financial Research Institute’s Fund Act Amendment Discussion Meeting
“You should give supervision over clearing institutions”
[아시아경제 성기호 기자] The Financial Services Commission and the Bank of Korea are confronting an online debate over the amendment to the Electronic Financial Transactions Act. The Financial Services Commission is promoting the introduction of the e-payment and transaction office industry and granting supervisory rights to liquidation institutions, emphasizing the justification. On the other hand, the BOK argues that the payment and settlement system is the central bank’s natural business, and it is reasonable for the central bank to have the authority to monitor and investigate electronic payment transactions.
On the 18th, the Korea Financial Research Institute held a discussion meeting on the amendment to the Electric Fund Act and expressed its position. The BOK emphasized that payment is a central bank’s natural business based on issuing power through webinars and discussions held at the National Assembly the day before. In addition, when the internal transaction of Big Tech is externally liquidated, the Financial Services Commission strongly opposed it as’Big Brother’, which allows users to see their shopping details. On the other hand, the Financial Services Commission believes that internal transactions of digital financial companies should also be monitored and supervised using the KFTC’s payment and settlement system (external clearing).
Lee Soon-ho, a research fellow at the Financial Research Institute, said, “It can be seen that even the same financial service is applying different laws depending on the means,” through the presentation of the’Significance and Major Issues of the Revision of the Electronic Fund Act.’ It is also necessary to discuss the reform of the rational regulatory system, including applying a consistent risk-based supervisory system through the reorganization of the licensing system.”
He then emphasized, “Can we include the regulated business under the Banking Act, the Capital Markets and Financial Investment Business Act, and the Insurance Business Act as regulated by electronic financial transactions?”
Concerns about transfer of personal information, issues of trust in institutions rather than issues of liquidation itself
Regarding external liquidation, he said, “Strengthening the supervision of activities for general settlement companies, etc. may be an alternative.” said.
Jeong Seong-gu, a lawyer at Kim & Chang Law Firm, emphasized the introduction of mandatory external liquidation through the’User Asset Protection System under the amendment to the Electric Money Act. He first explained, “The condition that needs to be cleared is when there are too many transactions that require payment between multiple parties first, or when the payment is not completed at the same time as the transaction,” he explained. “In the future, an electronic financial company will become a comprehensive payment settlement provider and In preparation for direct participation, e-payment transactions of electronic financial companies also need to be subject to liquidation.”
In addition, he explained, “It is necessary to liquidate the internal payment transactions of electronic financial companies,” he said. “It functions to prepare for bankruptcy of electronic financial companies as a prerequisite for preventing the use of user deposits and returning user deposits through transparent internal transactions.” .
Attorney Jeong said, “It is desirable to legalize the liquidation agency for almost all liquidation, as well as electronic payment transactions,” and said, “It is not a problem of liquidation itself, but a problem of trust in the liquidation agency.”
In the following comprehensive discussion, Dr. Jeong-ho Seo, head of Hana Financial Research Institute, Jung Joong-ho, director of Hana Financial Research Institute, Kim Ji-sik, director of Naver Financial, Choi Kyung-jin, professor of law at Gachon University, Hyun Jeong-hwan, professor of international commerce at Dongguk University, Seong-won Jang, deputy director of Korea Fintech Industry Association, Han-jin Lee, head of electronic finance department of the Financial Services Commission. I came out as a debater.
Reporter Kiho Seong [email protected]