South Korea aims to launch open banking system in December 2019

The South Korea Financial Services Commission (FSC), Korea Financial Telecommunications and Clearings Institute (KFTC), and Financial Security Institute (FSI) had a meeting with officials from banking and financial technology (fintech) industries, in which they gave updates on the government’s progress on adopting an open banking system to the country and timetables. The financial regulator will review participants’ security records and begin test run of the country’s open banking system in October 2019 before full service in December 2019.

The FSC said all banks and fintech companies will be able to join the new open banking system. The country’s 18 banks that provide account services, including the country’s two internet-only banks Kakao Bank and K-Bank, will transfer their customers’ account information through opening banking networks. The FSC plans to receive applications from July from fintech firms that wish to be part of the system.

The FSC is considering also adding savings banks, mutual finance and financial investment business entities with payment system functions to participate in the open banking scheme. The FSC will also continue to enhance security monitoring across the opening banking system to prevent any malicious activities such as hacking and voice phishing and to set up guidance on compensations for possible damages from financial accidents.