South Korea's chief financial regulator said Monday he will give more autonomy to financial companies in choosing security programs for their online payment systems in an effort to simplify Internet purchases.

"I will let financial firms choose their security programs for online payment systems," Financial Services Commission (FSC) Chairman Shin Je-yoon said in a meeting with officials from IT ventures and electronics firms including Daum Kakao, LG Uplus Corp., Samsung Electronics Co. and eBay Korea.

"I'll also lift all regulations that require all firms and users to download and install ActiveX software on their computer."

In South Korea, anyone wishing to carry out financial transactions online must install ActiveX, a software framework, on their computers.

The system, initially designed to enhance Internet security, is cited as a major inconvenience by shoppers as it does not work on all Web browsers, including some mobile platforms.

The FSC has focused on boosting the mobile-based e-commerce market and pushed to remove regulations in related areas to promote IT-finance consolidation.

It also has promised to remove the controversial compulsory authentication requirements for online purchases and introduce alternative online payment systems to offer foreign shoppers easier access to local shopping malls.

The authentication certificate, issued by local banks, runs in conjunction with Active-X.

"The FSC will step up its efforts to boost the convenience of the new financial services and tighten information security as well," said Shin.

He said the FSC and IT companies agreed to set up a government-private cooperative body to promote the integration of information technology and finance.

The organization will discuss ways to foster cross-sector collaboration and share ideas about deregulation.

The FSC chairman noted that Daum Kakao, the leading mobile messenger and portal service provider, has launched mobile payment systems called "Bank Wallet Kakao" and "Kakao Pay," through which users can send money or shop online without complicated ID authentication processes. (Yonhap)