From broadening the interpretation of existing positive regulations
to considering all possible ways including excluding industries where entry is not allowed
Kim Ju-hyun, applauding Financial Services Chairman. Yonhap News
, ‘[Financial News] With the accelerating trend of the Big Blur phenomenon where the boundaries between financial and non-financial companies are blurred, it is expected that financial authorities will push for easing regulations on the separation of finance and industry to allow banks to enter non-financial businesses. As global financial companies accelerate their entry into non-financial sectors, there has been a period of collecting opinions on the impact on small and medium-sized enterprises, small business owners, etc., including concerns about infringement on neighborhood commercial areas. ‘,
, ‘A financial authority stated on the 2nd, “The targets of regulatory easing on separation of finance and industry include allowing subsidiaries of financial companies to invest and considering transitioning from the existing positive (enumerative) regulations to a negative (comprehensive) approach that allows everything except industries where entry is not allowed.” ‘,
, ‘Specifically, the examination will include criteria for allowing subsidiaries of financial companies to invest, such as introducing efficiency criteria in addition to current relevance to the financial sector, and whether it is necessary to expand the scope of ancillary business of financial companies beyond current core business. ‘,
, ‘Previously, Financial Services Chairman Kim Ju-hyun stated last week, “In order to enhance the quality of services and competitiveness of the financial industry, regulatory easing on the separation of finance and industry is necessary,” and expressed that “being trapped in traditional notions in Korea and being unable to do anything is inappropriate.” ‘,
, ‘Upon assuming office two years ago, Chairman Kim declared that he would open a new chapter to allow players in the Korean financial industry to lead the global financial market, similar to BTS. However, it was pointed out that if banks with substantial financial and business capabilities expand their operations in an octopus-like manner, the impact on small and medium-sized enterprises, as well as small business owners, would be inevitable. Therefore, in order to further consider the impact of financial companies’ entry into non-financial businesses on small and medium-sized enterprises, the timing of the initiative has been indefinitely postponed. ‘,
, ‘When KB Kookmin Bank’s “Live Em” service was recognized by financial authorities as the 1st innovative financial service (regulatory exception), concerns were raised that it would disrupt the existing ecosystem of small and medium-sized users. However, the authorities pointed out, “Overseas, banks are opening the way for non-financial business expansion, and the entry of global financial companies into non-financial sectors is expanding.” ‘,
, ‘According to financial research institutions, the Japanese Financial Services Agency emphasized that in order to overcome COVID-19 in 2020 and establish a new societal structure in the post-COVID-19 era, banks should play a role in supporting companies with funding and actively investing, thereby supporting business improvement and revival of the economy. It has been emphasized that Japan will embark on institutional improvements such as easing restrictions on the scope of bank operations. \n’]