Naver solved the problem, but Kakao is a strong hold… Samsung Card eventually stopped similar services
[팍스넷뉴스 김승현 기자] Big tech Naver Financial, Kakao Pay, and financial company Samsung Card are having mixed joys over entering the my data business. Unlike Naver Financial, Kakao Pay and Samsung Card failed to meet the requirements for large shareholder qualifications ahead of the second announcement of the preliminary license. Samsung Card eventually decided to stop providing similar My Data services.
The financial authorities are scheduled to hold a regular meeting on the 13th and announce the results of the 2nd preliminary approval of My Data. Samsung Card, four affiliates of Hana Financial Group, and Kyungnam Bank, which failed to resolve the issue of eligibility for major shareholders, were excluded from the review.
Samsung Card will eventually stop its asset inquiry service, a my data service, this month. From next month, the My Data business is changed to a license system, and Samsung Card, which has not acquired a license, cannot provide the service. Samsung Card has provided an asset inquiry service in the mobile application (app)’Samsung Card My Home’ in preparation for the full-scale entry of the My Data business. It is a service that searches financial assets such as a customer’s deposit account, card, loan, and insurance, and is similar to my data.
My data business is attracting attention as a key food for card companies. It can provide customized services by analyzing customer consumption patterns based on individual payment information, or collaborate with other industries based on vast amounts of data. In particular, the my-data business is like an exit to the card industry, where there is a strong downward pressure on profitability, such as a cut in merchant fees. This is the reason why all seven full-time card companies are engaged in my data business.
However, as Samsung Card was blocked from entering the my data business, it was in danger of being pushed out of the industry competition. The problem was that Samsung Life, the major shareholder, received severe punishment from the authorities for the problem of cancer insurance. An official from Samsung Card said, “Because we cannot provide the asset inquiry service without a my data license from next month, we will stop the service.” .
Four of Hana Financial Group’s affiliates were also excluded from the review because the criminal lawsuits underway by Hana Financial Group were not resolved. Hana Financial Group was caught in a case that was accused by a civic group in connection with the’Choi Soon-sil Gukjeong Nongdan Incident’ in 2017.
Among big tech, Kakao Pay stands out. Kakao Pay has a high possibility of pending examination as it has not been able to resolve the qualification requirements for major shareholders. This is because although the financial authorities have completed the submission of additional documents requested by the financial authorities, the status of sanctions by the Chinese authorities of Ant Financial, the second largest shareholder, has not been disclosed. Ant Financial owns a 43.9% stake in Kakao Pay. As the Chinese authorities announced measures to suspend the listing of Ant Financial in October last year, the Korean financial authorities are in a position that a careful review of Kakao Pay’s major shareholders is necessary.
An official from the Financial Services Commission said, “The current credit information industry supervision regulations apply the issue of eligibility to the largest shareholders,” and “According to the policy, the examination will be conducted until the eligibility problem of the largest shareholders of the companies excluded from this review is resolved I cannot resume.” The Credit Information Supervision Regulations stipulate that if the majority shareholder of a company applying for a my data license violates financial related laws, the My Data business cannot be operated during the disciplinary period.
On the other hand, a blue light came on for Naver Financial, which had a break before the main approval review. This is because Mirae Asset Daewoo, the second largest shareholder, lowered its stake and met the requirements of the largest shareholder.
Naver Financial received a preliminary license for the My Data business last month and was about to get the original license. However, as it became known that Mirae Asset Daewoo is being investigated by the prosecution for violating the Foreign Exchange Transaction Act, it was dropped from the list of main permits.
Eventually, Mirae Asset Daewoo changed its common stock from Naver Financial to convertible preferred stocks and lowered its share of common stock from 17.66% (21,4477 shares) to 9.5% (10,4977 shares). As Mirae Asset Daewoo’s stake fell to less than 10%, Naver Financial was able to enter the subject of main approval again. Naver Financial’s resumption of the original license review will be discussed separately later.
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