South Korea’s financial watchdog considers blockchain technology to be a major part of a push to bolster the country’s fintech industry, according to a report by local media outlet Korea JoongAng Daily.
As reported by the publication, South Korea’s Financial Services Commission (FSC) yesterday unveiled a plan to introduce new regulations aimed at encouraging the fintech industry to utilise new technologies such as blockchain and communication technologies. The watchdog believes that blockchain solutions can be used in new payments systems and intends to encourage banks and insurance companies to use the blockchain to enhance the security of clients’ financial information. The FSC also believes that blockchain can further benefit customers by simplifying verification procedures.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
The regulator plans to approve a new type of payment system called app-to-app, which will allow users to purchase products directly via apps, so that they will not need to pay fees to credit card firms or card network providers. Banks will still charge the transactions, but the FSC believes that commission rates for consumers will go down due to increased competition.
According to the watchdog, the regulatory rollbacks will lead to the development of innovative fintech solutions that will allow customer to buy investment products via video chat and small businesses to obtain investors from crowdfunding.
“The players in the financial service market are becoming more diverse, with new companies entering, and the competition in the financial market is becoming fiercer,” said the FSC chairman Choi Jong-ku, as quoted by Korea JoongAng Daily. “As a result, existing financial companies are also making attempts with fintech to raise their services.”
Choi also said that the development of the fintech sector will open new jobs, especially for young people.
“Fintech is an area that requires new technologies, and it will solve the youth job problem by increasing job positions for young people,” Choi said.