The open banking system will be pilot-launched in the banking sector on October 30. During the pilot-run period, the government will conduct a comprehensive assessment of the system and make adjustments if necessary before opening the system to fintech firms on December 18.
The government recognized that financial payment services and data sectors have a significant potential for innovation, and announced on February 25 this year its plan to establish an open banking system, which would allow fintech firms’ access to banks’ payment network through open API3 initiatives.
Lower transaction fees and enhanced user convenience
► The current fee of KRW400 to 500 per transaction will be lowered to about KRW40 to 50 for large service providers, and KRW20 to 30 for small- and medium-sized firms.4 ► Bank customers can choose any mobile banking application to manage all their accounts in a single application without having to use separate applications for different banks.
Ensuring security and protection for consumers
► Fintech firms attempting to participate in the open banking system are subject to a security check by the Financial Security Institute. ► The storage capacity of the current operating system will be upgraded from 4TB to 60TB before the system becomes open to fintech firms, and a…