Regarding the external liquidation of big tech internal transactions, which the Bank of Korea and the Financial Services Commission are unable to narrow down their disagreements among the amendments to the Electronic Financial Transactions Act (Electric Money Act), Lee Han-jin, head of the Electronic Finance Division of the Financial Services Commission, held the issue of amendments to the Electronic Finance Act held by the Korea Financial Research Institute on the 18th. At the discussion meeting, “We have prepared amendments to the Fund Act to ensure the reliability of fintech through regulations, etc.,” he said. “You can receive painful criticism, but please stop criticizing unfounded criticism.”
The Bank of Korea and the Financial Services Commission argue different opinions on the amendment to the Fund Act to make internal transactions within the Big Tech platform through the KFTC’s payment and settlement system. The Bank of Korea believes that using the payment system for internal transactions may infringe on personal privacy. On the contrary, the Financial Services Commission is in a position that it is necessary to know how internal transactions were conducted to reduce the damage to users caused by fintech bankruptcy.
“I know the efforts of experts such as the Bank of Korea and employee banks who made and changed the payment and settlement system of KFTC.” Even if it is the same, it is a problem, and if it is not the same, it is necessary to be a problem.”
Wanglian, China, is fintech’s external transaction clearing system. The liquidation between Fintech and the bank was designed through Wanglian. However, the amendment to the Electric Money Act contained the content that in addition to external transactions, internal transactions, that is, transactions made within fintech, must be liquidated through the KFTC’s payment and settlement system. At this branch, the Bank of Korea strongly criticized on the 17th that the problem of liquidating external institutions, including internal transactions, could become a’big brother’ that can look into personal privacy.
Regarding this point, at the debate meeting on the day, Jeong Seong-gu, a lawyer at Kim & Chang Law Office, said, “Is it not excessive to transfer personal information to the liquidation institution, but this is a matter of trust in the liquidation institution, rather than a problem of liquidation itself.” Attorney Jeong explained, “Even now, hundreds of millions of information are exchanged through Girona and BankPay. There are special rules for preventing misuse of information by liquidation agencies and strengthening security.”
Related Articles
Seongsu Eun “External clearing of internal transactions in Big Tech, to know the source of money”
The confrontation between the Financial Services Commission and the Bank of Korea over’big tech regulation’ is sharp
Lee Joo-yeol “Introduction of the liquidation industry of the Financial Services Commission… unnecessary involvement in the Bank of Korea”
In addition, Democratic Party Rep. Kwan-Seok Yoon, representative of the amendment to the Electric Fund Act
Manager Lee pointed out, “It is regrettable not to see the whole,” and “Just because the amendment of the Electric Money Act is not implemented, the trend of the 4th Industrial Revolution cannot be changed.”
Regarding the amendment to the Electric Fund Act, Manager Han-jin Lee acknowledged that regulation is a point where it can foster the fintech industry and create trust at the same time, citing the case of fraudulent settlement at fintech companies and that many customers withdrew from this service. It was more. He emphasized, “The revised bill of the Electric Money Act included a set of three sets for user protection, namely, an external deposit system for customer deposits, and a user’s right to pay preferential repayment in case of business bankruptcy, and a system for liquidation of mismatches.”