On Jan. 27, the Financial Services Commission and the Financial Supervisory Service announced a measure to support the convergence of IT with banking industries. The measure is aimed at introducing and expanding financial technology (fintech).
By June, financial authorities will get rid of all regulations that demand the obligatory use of specific technologies including the systems for reviewing security and rating certification method. As a result, payment services using finger and iris recognition technology or those using smart watches and glasses are likely to be available in the market. As for payment methods using signatures, the limit on person-to-person transactions will be eliminated. Accordingly, the allowed amount will increased from 500,000 won (US$457) to 2 million won per day and 5 million won per month (US$4,572) for Bank Wallet Kakao.
The criteria for capital needed to run e-banking businesses will be lowered as well. Right now, at least 5 billion won (US$4.6 million) is required to set up digital currency companies, 3 billion won (US$2.7 million) for companies that facilitate digital money transfers, 2 billion won (US$1.8 million) for pre-paid and debit card companies, and 1 billion won (US$914,000) for online payment service providers. The nation’s two financial regulators are planning to slash the size of minimum capital requirements by more than 50 percent in the mid to long term.
For full article, see Business Korea.