“Opposition of Bank and industry separation to be revealed & large IB innovative companies in limitation”…New financial role on the innovation
Kim Dong-gook | east@ | 2017-12-22 11:23:30
The Financial Supervisory Commission has argued that the ultra-large investment bank (IB), which was originally opposed to the easing of the restrictions on the bank and industry separation of Internet-affiliated banks and introduced it to foster venture capital, should be limited to new and innovative companies. It is argued that the Innovation Committee is in the process of reversing financial innovation, as it has been widely backed by the policies that have been pursued for the upbringing of the new financial industry and financial innovation in the past.
Yoon Suk-heon, chairman of the Financial Administration Innovation Committee, revealed the final recommendation of the Financial Management and Innovation Committee on December 20 at the briefing room of the Seoul government office.
The innovation committee, which is in the process of preparing the financial reform proposal, first stipulated that K-bank approval is not a necessary condition for Korea`s financial development. Furthermore, K-bank pointed out that it should not be expected to relax regulations on the bank and industry separation, but should suggest ways for its own development. As a consequence of the resolution of the separation of segregation of financial institutions based on the separation of finance and industrial capital, the government`s regulatory policy for Internet banking banks is likely to decline significantly in the future.
The Finance and Economy Minister, in particular, has ordered the financial authorities to review the benefits and issues of easing regulations on segregation of segregation on the basis of various opinions of the National Assembly and various sectors.
Especially, the Minister of Innovation recommended that the government revise the regulations related to the licensing of banks and other financial institutions on the same extension line, and refrain from equating Internet banking firms with FinTech.
The Innovation Commission also argued that the large IBs that are being pursued to foster venture capital should limit the extent of credit granting to the investment bank`s unique functions or start-ups and innovators. In addition, it ordered that large-scale investment banks should strengthen their sound regulation and investor protection at a level similar to that of ordinary banks until they show normal development.
The financial sector, especially new financial institutions, is strongly opposed to the decision by the innovation committee to reverse these new financial and financial innovations.
An Internet bank representative said, "I doubt whether the innovation bureau will block the new financing business based on FinTech, including the Internet bank." He expressed concern that the new financial industry would be deteriorating. "As far as I am concerned, the SMEs should only lend to small and medium-sized enterprises, even if they are doing a very large IB business," said a securities company official who has been banned from the ultra-large IB business.
Meanwhile, the committee recommended that the Finance Minister ask Samsung to impose penalties and income tax on the bank account of Chairman Lee Kun - hee of Samsung Group found in 2008. A total of 1,999 accounted for a total of 4.4 trillion won in personal account names. The ministry said that it would be 90% taxable on the interest and dividend income from the financial assets if it were classified as a financial asset that traded in 1001 out of 1199 accounts since the real name system was implemented in 1993.
Rep. Park Yong-jin of the Democratic Party, in October last year, stated, "Lee has avoided taxes and fines by returning 4.4 trillion won to his account and the avoidance scale is at least 100 billion won to several hundred billion won.
Mr. Yoon also said, "The launch of the innovation council has been organized to check the overall financial management related work that the authorities and the financial institutions have not yet gained the trust of the public and recommend the improvement plan." He said that it is difficult to review the details, I think it is right (policy) direction, and I have taken a picture of the bank should find a room.”
By Kim Dong-gook east@dt.co.kr
[ copyright ⓒ The Digitaltimes ]
Yoon Suk-heon, chairman of the Financial Administration Innovation Committee, revealed the final recommendation of the Financial Management and Innovation Committee on December 20 at the briefing room of the Seoul government office.
The innovation committee, which is in the process of preparing the financial reform proposal, first stipulated that K-bank approval is not a necessary condition for Korea`s financial development. Furthermore, K-bank pointed out that it should not be expected to relax regulations on the bank and industry separation, but should suggest ways for its own development. As a consequence of the resolution of the separation of segregation of financial institutions based on the separation of finance and industrial capital, the government`s regulatory policy for Internet banking banks is likely to decline significantly in the future.
The Finance and Economy Minister, in particular, has ordered the financial authorities to review the benefits and issues of easing regulations on segregation of segregation on the basis of various opinions of the National Assembly and various sectors.
Especially, the Minister of Innovation recommended that the government revise the regulations related to the licensing of banks and other financial institutions on the same extension line, and refrain from equating Internet banking firms with FinTech.
The Innovation Commission also argued that the large IBs that are being pursued to foster venture capital should limit the extent of credit granting to the investment bank`s unique functions or start-ups and innovators. In addition, it ordered that large-scale investment banks should strengthen their sound regulation and investor protection at a level similar to that of ordinary banks until they show normal development.
The financial sector, especially new financial institutions, is strongly opposed to the decision by the innovation committee to reverse these new financial and financial innovations.
An Internet bank representative said, "I doubt whether the innovation bureau will block the new financing business based on FinTech, including the Internet bank." He expressed concern that the new financial industry would be deteriorating. "As far as I am concerned, the SMEs should only lend to small and medium-sized enterprises, even if they are doing a very large IB business," said a securities company official who has been banned from the ultra-large IB business.
Meanwhile, the committee recommended that the Finance Minister ask Samsung to impose penalties and income tax on the bank account of Chairman Lee Kun - hee of Samsung Group found in 2008. A total of 1,999 accounted for a total of 4.4 trillion won in personal account names. The ministry said that it would be 90% taxable on the interest and dividend income from the financial assets if it were classified as a financial asset that traded in 1001 out of 1199 accounts since the real name system was implemented in 1993.
Rep. Park Yong-jin of the Democratic Party, in October last year, stated, "Lee has avoided taxes and fines by returning 4.4 trillion won to his account and the avoidance scale is at least 100 billion won to several hundred billion won.
Mr. Yoon also said, "The launch of the innovation council has been organized to check the overall financial management related work that the authorities and the financial institutions have not yet gained the trust of the public and recommend the improvement plan." He said that it is difficult to review the details, I think it is right (policy) direction, and I have taken a picture of the bank should find a room.”
By Kim Dong-gook east@dt.co.kr