FSC emphasizes importance of exporting financial infrastructure model

Financial Services Commission Vice Chairman Kim So-young speaks during a conference held to foster overseas expansion of domestic financial infrastructure in Seoul, Monday. Courtesy of FSC

By Anna J. Park

Financial authorities plan to announce a set of measures aimed at fostering exports of local financial infrastructure models during the second half of this year. Financial infrastructure refers to an underlying technological system for financial transactions, such as payments and remittances.

The Financial Services Commission (FSC), the top financial regulator in the country, held a conference, Monday, under the theme of activating financial infrastructure expansion overseas.

Cases of successful exports of local financial infrastructure systems were shared during the conference, while mid- and long-term strategies to support the overseas expansion of the system were discussed.

FSC Vice Chairman Kim So-young emphasized that the export of local financial infrastructure would lead to deepening mutual international cooperation and networks with the importing countries, which are mostly in their early stages of financial industry development.

“When these countries adopt Korea's financial infrastructure models, there's high likelihood that their financial laws, regulation and systems will operate in similar ways to Korea's. Furthermore, the introduction of Korea's financial infrastructure models could lead to close networking and cooperative relationship with importing countries' financial authorities and relevant agencies, which in turn potentially benefits domestic financial companies and institutions in expanding their businesses,” Kim said during the conference, emphasizing the importance of establishing a long-term collaborative relationship with these countries.

“Additionally, compared to more common large-scale projects like road and port construction, financial infrastructure model export requires less budget yet can significantly elevate Korea's global standing, while contributing to a target country's real economic growth by aiding accumulation of capital and alleviating financial disparities in the countries,” the vice chair added.

During the conference, the Korea Financial Telecommunications and Clearing Institute (KFTC) showcased its successful experience in building Cambodia's payment settlement system, with the help from various government agencies. The agency emphasized the need for collaboration among related institutions to diversify business opportunities in target countries. The Korea Exchange (KRX) also shared its case of exporting a clearing and settlement system to Thailand, stating that they plan to strengthen marketing efforts towards countries that haven't yet adopted exchange systems.