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On the 25th, the Financial Services Commission formed the “Second Competition Assessment Committee in the Financial Sector”, chaired by Vice President Gyu-sang Doh, and held the “Future Perspectives and Competition Assessment” of the financial sector. During the meeting, 12 evaluation members, including Seoul National University professor Han Ki-jeong, the chairman, were appointed to discuss the committee’s future operational plans and the insurance industry evaluation drafts.
Vice President Do said, “With the fourth industrial revolution, the boundaries between financial and non-financial are being broken, manufacturing and sales are being separated, and the big blur where customer experience matters is accelerating.” We need to make more efforts to ensure change and innovation, customer experience and trust. “
In common, it will analyze the profitability and potential risks that environmental factors such as low birth rates and aging, low interest rates and the prolongation of the Crown 19 have on individual financial sectors. In addition, it was decided to discuss the concentration of the financial sector and the competitive environment through quantitative indicators such as net income and the Herfindall and Hersheyman Index (HHI).
Based on this assessment, financial authorities will seek countermeasures within the financial sector and improve the requirements for entry into the financial sector. The assessment will be conducted in the order of the insurance business within this year, the credit assessment business in the first half of next year, and the bank and credit card business in the second half of next year, and the assessment objectives will be expanded if necessary.
By business sector, the insurance sector reviews sustainable development and innovation plans for the insurance sector in response to changes in the digital and platform, social structure and accounting system. The committee intends to discuss ways to revitalize the online insurance market, how to facilitate entry into digital insurance companies and establish fair competition, and prospects for new profit-generating areas such as health services, health promotion insurance and asset management functions.
In particular, views have been expressed that the revitalization plan following the introduction of the specialized short-term insurance sector and the current one company principle, an insurance license should be flexible. To cope with changes in the insurance environment, such as innovation in insurance products, asset and liability management, and improved organizational flexibility, the two licenses should exceptionally be allowed when separating sales channels and products. The committee decided to hold an additional meeting until January next year, including this discussion, to assess the degree of competition in the insurance industry and finalize the assessment.
In the assessment of the credit rating activity, which will be carried out in the first half of next year, it is planned to review the operational plans to improve their efficiency and reliability. It will examine and assess competition in the internal credit rating market by examining the trends and regulatory systems in the credit rating sector in major countries, as well as reviewing measures to improve the obligation to maintain credit ratings.
In the assessment of the banking sector, the profitability prospects of new services such as fintech and big tech entering the financial sector are analyzed and the impact on local banks and banks, and the rational operational strategy of the store is sought. In addition, it analyzes the state of service provision after the launch of the Internet specialist bank and its impact on the financial sector, and examines the need for new entrants.
The credit card business is divided into payment and loan activities, core business, and analyzes the degree of competition. In the payment business, the company examines My-Payment and the advancement in the global payment and settlement business and examines the effect of the reorganization of the franchise fee system on competition among credit card companies. In the lending business, we plan to expand and increase the efficiency of the lending business by using customer data held by credit card companies and review plans to enable new business.
Gyu-sang Do, Vice President of the Financial Services Commission, said: “Based on a long-term perspective looking to the future for the next 10 and 20 years, the current position of experts and the Korean financial industry is diagnosed. from a third-party perspective and current entry and business regulations are We need to check whether it is suitable for innovation, “he said.” Financial Wido will consider expansion, convergence, alliance and fair competition from the financial sector together and will support it with effective institutional improvements such as licensing policies and corporate regulations. “
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