It will be possible to join a MVNO (Mobile Virtual Network Operator) at a bank and exchange currencies and make withdrawals at drive-thru restaurants. It is expected that various blockchain-based services such as trading of unlisted stocks and others will make their appearances one after the other.
Innovative services that were restricted by various regulations are expected to be launched due to enforcement of financial regulatory sandbox.
Financial Services Commission (FSC) held its first innovative financial evaluation committee and selected 19 services that will be evaluated first.
In regards to banking, KB Bank has launched its MVNO business. Just through single USIM chip, one can join banking and telecommunication services without having to go through complicated procedures. The committee granted an exception to banks so that they can carry out mobile network business as part of their sub-businesses.
Woori Bank is planning to introduce a service that will allow its customers to exchange currencies and make withdrawals at drive-thru stores without having to visit a bank. Just like Japan where people can open bank accounts at convenience stores, Woori Bank’s customers will be able to handle various tasks at restaurants or gas stations.
“When banks provide mobile network services, we can expect new financial models that converge finance and telecommunication on full-scale.” said Director Choi Jong-gu of FSC. “We will deal with demands for applications at all times without any stoppage throughout the year and process every procedure related to sandbox as fast as we can.”
Various regulations that have been receiving requests by industries for deregulation are now under exemption list. FSC granted regulatory exemption to Finda, Viva Republica, NHN Payco, Alpha Fintech, and Finset.

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<Director Choi Jong-gu of FSC (9th from the left) and members of Innovative Financial Evaluation Committee took a commemorative picture after an appointment ceremony.>

“Regulations that have been receiving many requests for deregulation can now be improved institutionally through this sandbox.” said Director Kwon Dae-young of FSC’s Financial Innovation Support Group.
Regarding credit cards, the committee is now allowing P2P (Peer to Peer) wire transfer for cash gifts and others. This service is provided through Shinhan Card’s PayFAN application. BC Card is now allowing individual sellers that are not registered as businesses to join as its franchise stores so that food trucks or used goods trading businesses can receive credit cards through QR codes without having to register themselves.
The committee simplified membership procedures for insurance products so that consumers only have to go through explanations on contracts and authentication only when they join insurance products for the first time. It is possible to join an insurance service with just single touch through an application. Rainist is applying this service to various insurances while NH Property and Casualty Insurance is applying this service to its traveler insurance.
Many blockchain-based services have come together within capital market. Casa Korea is issuing beneficiary certificates from real estate trust agreement, which were not allowed based on previous Capital Market Act, through blockchain technology. Within this service, digital securities that did not have legal definition are considered as securities.
KOSCOM is applying blockchain technology to managing a list of stockholders of a private business. At the same time, it will establish a platform so that stockholders can sell and purchase stocks between each other. Directional will operate a blockchain-based stock lending platform so that individual investors can borrow stocks at their market prices.
Shinhan Card and Douzone Bizon are now allowed to perform credit inquiry on small and medium businesses and individual businesses. The committee is going to allow an exception on limits to P2P (Peer to Peer) financial investments on new renewable energy and it is going to allow approval on withdrawals just through SMS authentication.
All of these 19 services can be launched immediately after going through evaluations by the committee on the 8th and votes by FSC on the 17th. FSC is going to finalize its evaluation after considering many factors.
Staff Reporter Ryu, Geunil | ryuryu@etnews.com