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On the 17th when the National Assembly’s Political Affairs Committee presented the amendment to the Jeon Bank Act (initiated by the representative of the Democratic Party with Yoon Kwan-seok) at the plenary meeting, the BOK could collect customer transaction information of pay companies without any restrictions based on the opinion of the law firm. He criticized it as being’Big Brother’. On the 19th, finance committee chairman Eun Seong-su pointed out that the controversy over Big Brother on the 19th was “a misunderstanding of the BOK” and “there is still information on the transfer of funds going to the KFTC. did.
However, on the 21st, the BOK refuted the criticism of Chairman Eun in some order. A senior BOK official said, “Chairman Eun does not distinguish between internal and external transactions. In the case of bank transfer, the details of internal transactions exchanged within the same bank are not transmitted to the KFTC. Even in the case of external transactions remitted to other banks, only the minimum information necessary for the transfer of funds is transmitted to the KFTC.” This is not only consistent with the purpose of the Personal Information Protection Act, but also explains that it is a common payment and settlement operation method worldwide.
The amendment to the Fund Act causes controversy with the’Big Brother’. The Financial Services Commission, which manages and supervises the Financial Services Commission in accordance with the amendment to the Fund Act, is that all information that contains personal information such as Internet shopping history of all customers who trade big tech companies is gathered at the Financial Services Commission. This is because you can access this information without any restrictions.
It is difficult to trust big tech companies as much as banks, so the KFTC will access all customer transaction information of big tech companies and “set-off (internal liquidation)” instead of the details of funds that have come through Kakao Pay. The amendment to the Electric Money Act forced big tech companies to pay a penalty within 50% of their profits if they violate this.
Finance Commissioner Eun Seong-soo explained, “If a financial accident occurs, you need to know who is the owner of the money to give it back.” Regarding this, a high-ranking BOK official said, “The Big Brother issue arises from forcibly concentrating enormous amounts of information on daily transactions of the people, and it is not resolved by offering access to certain cases (financial accidents, etc.). Experts consistently point out that the Financial Services Commission has a wide range of access rights to transaction information held by KFTC through the authority to supervise the KFTC and request data submission.”
The BOK claims that Wanglian of China, which the Financial Services Commission uses as a model for digital clearing institutions, does not collect big tech internal transactions. The Financial Services Commission has argued that Wanglian offsets and liquidates internal transactions of big tech companies, taking the case of Wanglian, but the BOK explained that this is not the case. Jun-kyu Min, head of the bank’s legal office, attended the discussion on the 16th and said, “Wanglian handles payment transactions between big tech and commercial banks, and does not liquidate the internal transactions of big tech companies.”
A high-ranking BOK official said, “Wanglian of China, which the Financial Services Commission uses as a model for digital clearing institutions, does not collect internal transaction information from big tech,” he said.
The amendment to the Fund Act requires that big-tech companies deposit customers’ Kakao Pay and prepaid recharges in separate banks due to concerns that big tech companies will use customer money. However, the KFTC does not have enough means to monitor all customer transaction information. The purpose of the FSC is that it should be made visible. Wanglian differs from Korea in its operating structure, including mandatory deposits of funds from big tech companies such as Alipay in Wanglian accounts managed by People’s Bank, not commercial banks.