Fintech law and practice: A Korean perspective

Abstract

After reviewing the financial regulatory system and market structure in Korea, this chapter examines the recent development of fintech in the area of banking, capital markets, and payment services. In the banking sector, the main focus is on the development of internet-only banking. Under the strict regulations on the separation of financial capital and industrial capital, technological companies’ entry into the banking business causes serious banking law debates. In capital markets, the application of the fintech model in capital markets such as equity and debt-based crowdfunding and robo-advisors is widely discussed. Easy payment & remittance and crypto-assets are a concern for both legal practitioners and the business sector. The legal character and function of crypto-assets is also a significant issue in Korea. In Korea, institutional efforts to introduce new financial products and services in accordance with the combination of technology and finance are being developed in various fields such as banking and securities. Particularly noteworthy is the introduction of new means of payment. The regulatory sandbox newly introduced by Korea will have an impact on the Korean financial regulatory system, which has traditionally been very conservative. This chapter is based on the law of Korea as of 30 June 2019.