South Korea’s Financial Regulator Designates Nine FinTech Services For Regulatory Sandboxbr>
South Korea’s Financial Services Commission (FSC) has announced the first participants of its recently launched financial regulatory sandbox.
The FSC financial regulatory sandbox was launched earlier this month after the Special Act on Financial Innovation Support went into effect. Under the special act, companies selected by the FSC to partake in the regulatory sandbox are exempt from current financial regulations. To protect consumers from potential harm, participating companies are required to submit consumer protection and risk management plans, which the FSC must approve before their services can be tested.
In its latest announcement, the FSC released the names of the first batch of financial service providers accepted into the sandbox. These include KB Kookmin Bank, Shinhan Card, NH Property and Casualty Insurance, Rainist, BC Card, Root Energy, Payple and Directional. These firms will test services in areas such as payments and money transfers, capital markets and robo-advisers, insurance, big data, credit score checking and blockchain technology.
“Among 19 applications shortlisted for priority review, nine firms were first allowed to test their innovative services and products in the regulatory sandbox,” the FSC said. “For the remaining 10 applications, the FSC will soon decide whether to accept them into the regulatory sandbox at its meeting scheduled for May 2, 2019.”