South Korea

핀테크 폭풍성장 美·英처럼 … 한국도 규제 확 풀어야 혁신금융 '닻' 올린다

Maekyung | Local Language | News | Nov. 28, 2025 | Regulation

South Korea's finance and insurance sectors currently contribute about 5% to GDP, significantly lower than the 8–25% seen in major financial hubs like the US, UK, Singapore, and Hong Kong. While Korea's economy ranks in the world’s top 10, the country's financial industry lacks comparable structural depth and dynamism, partly due to a historically risk-averse regulatory environment shaped by past crises, such as the foreign exchange crisis and the pandemic-induced shocks affecting global banks in 2023.

International examples reveal that financial innovation thrives in regulatory environments that balance risk management with flexibility. The UK’s fintech sandbox, launched in 2015, enabled startups like Revolut and Monzo to rapidly grow by experimenting within a controlled framework, leading to over 18 fintech unicorns valued at $1 billion or more. The US adopted a "negative regulatory principle," allowing most innovations unless explicitly prohibited, which fostered companies like Plaid and Chime to pioneer open banking and inclusive finance models. Brazil’s reform of open finance policies reduced entry barriers, enabling Nubank to emerge as a mobile superbank improving financial accessibility for low-income populations.

The common factor in these successful ecosystems is regulatory flexibility—where rules allow innovation through managed risk-taking, and accountability comes only when systemic harm arises. Such frameworks support ongoing experimentation, aligning with Nobel laureate Paul Romer’s view that growth results from institutional environments open to new ideas. Korea’s financial sector has shown early signs of adopting this mindset, exemplified by the 2019 financial regulatory sandbox that allowed Toss Bank to innovate in lending by partnering with regional banks to offer better loan terms.

With Korea’s advanced digital infrastructure, skilled workforce, and digitally receptive customers, the country stands poised to shift from a culture focused on risk avoidance to one that embraces "responsible challenge." Sustainable financial innovation will require a regulatory approach that tolerates trial and error while effectively managing risk, rather than seeking to eliminate all uncertainties. As technological advances like AI and blockchain reshape finance, Korea’s financial industry must evolve its regulatory framework to foster innovation and maintain competitiveness amid changing market dynamics.

AI 시대 통신생태계 안정 발전 위해 “망 이용대가 공정화 입법 서둘러야”

ET News | Local Language | News | Nov. 28, 2025 | Regulation

The telecommunications industry is urging expedited legislation on network usage fees to ensure fair and stable development of the AI ecosystem amid ongoing Korea-U.S. tariff negotiations. The recently finalized fact sheet from these negotiations emphasizes non-discrimination toward American companies in digital services laws and policies, raising concerns about potential impacts on network usage fee policies.

Currently, most major operators in Korea, including domestic firms like Naver and Kakao and foreign companies such as Meta, Amazon, Microsoft, and Apple, pay network usage fees either directly or indirectly. Google is the exception, not currently paying such fees. The non-discrimination principle suggests system reforms are necessary so that all companies, including Google, contribute fairly to telecom carriers.

With AI technologies such as ChatGPT increasing demand for high-capacity data traffic, fair network usage fees are critical to finance infrastructure investments. Google alone accounted for 31.2% of Korea’s total data traffic last year and would be liable for annual traffic costs estimated around 200 billion won. If telecom carriers do not receive adequate fees from content providers, infrastructure costs may be passed on to consumers, risking network quality and national AI competitiveness.

Globally, countries like the EU and Australia are implementing legislation to share network investment responsibilities to support AI development. In Korea, four network usage fee-related bills aimed at prohibiting unjust or discriminatory network contracts are pending in the National Assembly. These bills seek to ensure fair regulatory practices between domestic and foreign companies in accordance with the principle of non-discrimination highlighted in the Korea-U.S. agreement.

Telecommunications industry representatives emphasize that existing laws already regulate foreign companies without discrimination and interpret the Korea-U.S. fact sheet as promoting regulatory transparency and equitable industrial cooperation rather than undermining fair fee structures.

Yonhap | English | News | Nov. 28, 2025 | UndeterminedBizdev-Partnering

Trade Minister Yeo Han-koo met with European business leaders in South Korea on November 27, 2025, to discuss measures for creating a stable investment environment. Attendees included representatives from Mercedes-Benz, Merck Korea, L'Oreal Korea, and the European Chamber of Commerce in Korea.

European companies raised concerns related to regulatory improvements, customs procedure simplifications, and the recognition of European standards as essential for boosting their investments. Yeo emphasized the South Korean government's commitment to reviewing relevant systems and regulations through the implementation of the Korea-EU free trade agreement to enhance market access for EU companies.