South Korea’s top financial regulator said Wednesday it will clear regulatory hurdles in the new year to foster convergence between finance and new technologies.

According to the Financial Services Commission’s key policy tasks for the financial sector in 2021, the authority will revise its financial regulatory system in July next year to allow local banks to operate nonfinancial services like food delivery via their mobile applications. 

“Discussions and research are underway to expand the platform business in the finance sector next year. Even before the regulatory reform takes effect next year, (the FSC) is planning to help financial companies develop platform-based innovative services by temporarily easing related regulations,” a FSC official said.

In addition, the authority will enable more financial entities, including commercial banks, local savings banks, brokerages and credit card operators, to set up “open banking” services, through which customers can manage accounts at multiple financial entities by using a single mobile financial application.

Meanwhile, in continued efforts to help the virus-battered businesses, the FSC will implement emergency loan programs worth 3 trillion won ($2.76 billion) targeting small merchants, who have suffered from the government’s recent ban on private gatherings of five or more people to combat a rapid resurgence of the COVID-19.

Also, maximum legal lending will be cut to 20 percent per annum from the current 24 percent starting February next year, which would ease financial burdens on heavy debtors hit hard by the pandemic, the FSC said. 

By Choi Jae-hee (cjh@heraldcorp.com)