South Korea: FSC introduces Guidelines on Financial Companies’ Investment in Fintech Business
The Financial Services Commission (FSC) has introduced Guidelines on Financial Companies’ Investment in Fintech Business.
According to the FSC, the guidelines expand the scope of fintech business opportunities in which financial companies are allowed to invest.
Currently, an ancillary business that a financial company is allowed to operate is limited to a business that relates directly to the company’s primary business. The guidelines now allow a financial company to operate fintech business as an ancillary business once it is allowed to invest in it.
To expedite the regulatory approval process, the guidelines require financial regulators to reply within 30 days whether an investment is approved or not.
If the company makes a loss from its investment, according to the FSC, it will be granted mitigation or immunity from penalty unless such loss was incurred intentionally or out of gross negligence.
The FSC notes that the guidelines will be implemented on a temporary basis for two years, starting in October 2019, on condition that relevant regulatory changes will be made in the meantime.
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